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PLAY >New Updates Tuesday, March 20, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

UCBH - UCBH Holdings Incorporated $52.94 -0.50 (-0.19)

Today's 50 basis point rate cut by the Fed was a step in the right direction, but Wall Street had hopes of more easing. With expectations of a 75 basis point cut in interest rates, even the financial sector showed susceptibility to the Fed's decision. The NYSE Financial Index (NF) fell 12.82 points or 2.20% to close at 567.71. The broad industry decline did have bearing on UCBH shares, which finished lower by $0.50 to close at $52.94. We do, however, believe that selling pressure could be short-lived now that the federal funds stands at 5 percent, matching its lowest level since mid-1999. Moving to the chart, today's decline was accompanied by light daily volume of 92,400 shares, which is notably less than the three-month average. This indicates that there is a lack of investors willing to drop shares at current levels. In addition, the stochastic is still pointing to higher levels and the OBV is moving higher on positive days. With that said, should shares trend higher later this week, we'll look for resistance to emerge at the 30-dma of $54, followed by a harder challenge at the $55 mark. Support will come at the 50-dma of $50.78. Look for entry points when shares bounce off support or break above the 30-dma on volume of at least 75,000 shares traded by midday.


Picked on March 15th @ $52.63
Change since picked +0.31
Stop Loss @ $49.00
 
Interactive Chart Quote News First Call on UCBH
 

New Candidate Updates

CEC - CEC Entertainment Inc. $40.60 -1.40 (+0.20)

CEC Entertainment has been consolidating in the $40-$42 range over the past week. On Tuesday, shares of CEC traded to an intra-day high of $42.15 before pulling back to close at its intra-day low of $40.60 on volume of 69,300 shares. Despite Tuesday's pullback, CEC has broken its short-term downward trend with two consecutive higher highs. Given the dearth of stocks for traders long the market, we are looking for the stock to regain its upward momentum on heavier volume in the near future. In the meantime, support is Monday's intra-day low of $40.23 with stronger support at the $40 mark, the February 21st intra-day high. Resistance has moved up to Monday's intra-day high of $42.00 and then the March 8th intra-day high of $42.50. A bounce off of $40.23 or a move above $42.00 on midday volume greater than 80,000 shares may be possible entry points. Our stops remain at $39.50.


Picked on March 6th @ $41.81
Change since picked -1.21
Stop Loss @ $39.50
 
Interactive Chart Quote News First Call on CEC
 


RDN - Radian Group Incorporated $61.99 +0.69 (+0.99)

To assist low and middle income families with a first mortgage, Radian Group has established a low down payment structure on its home loans. This greatly improves the chances of its customer's qualifying for a home and consequently provides RDN with a steady flow of business. Looking at the chart, RDN shares rallied higher on Tuesday, advancing 1.12% by the closing bell. The stock did flirt with higher levels on an intra-day basis, but found a stiff barrier at the 200-dma of $62.87. Still, today's 1.12% move put RDN nicely above the 10 and 50-dmas of $62.07 and $61.56, respectively. The short-term technical indicators also look strong, with the stochastic now headed higher and the MACD on the verge of a bullish crossover. So, with this in mind, we'll look for an entry point to come should RDN break sharply through the 200-dma on good volume of 250,000 shares traded by noon. Support will come at the 50-dma and just below at the $60 mark. We'll continue to keep firm stops at the $59 mark to restrict our downside risk.


Picked on March 18th @ $61.00
Change since picked +0.99
Stop Loss @ $59.00
 
Interactive Chart Quote News First Call on RDN
 


UHS - Universal Health Services $83.59 -1.33 (-0.78)

UHS was very strong for most of the day. In fact, the stock was able to hold off the selling hordes for all but the last half hour of trading. It almost appeared as if traders said, "What can we sell next?", and finally knocked UHS down a little bit. Nevertheless, UHS continues to look like a stock that value investors will keep buying when the market fear levels subside. Before the market collapsed, UHS was making a technically significant move, crossing over its 50-DMA, which closed today at $85.38. Although UHS closed below this moving average, the stock's uptrend remains intact because it stayed above yesterday's low of $82.00 and moved above yesterday's high of $86.00 during intra-day trading. If we see early weakness tomorrow, traders may consider picking up UHS if it stays above $82.00. Another good entry point may present itself if UHS can close above the 50-DMA accompanied by volume over 300,000 shares. If this move occurs, the MACD will likely issue a buy signal. This would be an encouraging event that would imply the continuation of the stock's advance.


Picked on March 15th @ $83.50
Change since picked +0.09
Stop Loss @ $80.00
 
Interactive Chart Quote News First Call on UHS
 


New Momentum Updates

MAT - Mattel Inc. $18.65 +0.36 (+0.95)

Mattel is breaking out after six sessions of sideways trading. On Tuesday, shares of MAT hit a new 52-week high of $19.05 on strong volume of 3.97 million shares. Unfortunately, the stock retreated from its highs to close at $18.65, its highest close since 9/30/99. Daily volume has been picking up over the past two weeks so MAT could continue to trend higher as we move into earnings season. From a technical standpoint, support is now up to Friday's intra-day high of $18.50 with additional support at $17.85, the 10-dma. Resistance is Tuesday's intra-day high of $19.05 and then $20.12, the 9/29/99 intra-day low. Traders may consider opening new positions on a bounce off of $18.50 or a move above $19.05 on volume of at least 1.3 million shares by noon. We are keeping our stops at $17 to limit potential losses.


Picked on March 15th @ $18.55
Change since picked +0.10
Stop Loss @ $17.00
 
Interactive Chart Quote News First Call on MAT
 

Play Updates Index

 


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