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PLAY >New Updates Thursday, April 05, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

MBI - MBIA Incorporated $82.79 +3.07 (+2.11)

Enjoying the benefits of a broad market rally, MBI surged to a new all time high close in Thursday trading session, gaining 3.85% on the day. A swift gap at the open sent a signal to momentum traders who took the stock as high as $82.98. Buying was strong throughout the entire financial services sector, with the NYSE Financial Index (NFX) adding 19.53 points, or 3.50%, to close at 577.38. We want to point out that the NFX could be close to breaking its down trendline, which could signal further strength to the sector. Turning back to the MBI chart, the technical indicators are certainly making the stock a stand out. Currently, the MACD and stochastic indicators are clearly trending higher, with the RSI starting to edge higher. On Balance Volume is also looking very strong at year high levels, suggesting to us that ample buying is occurring on positive days. Traders looking for additional entry points should wait for a sharp break through resistance at today's high of $82.92 or a bounce off the 5-dma of $80.90. Continue to hold a firm stop at the $76.50 mark.


Picked on April 2nd@ $81.70
Change since picked +1.09
Stop Loss @ $76.50
 
Interactive Chart Quote News First Call on MBI
 


SBUX - Starbucks $40.94 +0.00 (-1.50)

SBUX continues to struggle a bit this week as it attempts to consolidate around its 200-DMA of $42.41. In Tuesday's write-up we expressed concern about adding to positions if SBUX failed to climb back over this important moving average. Nothing has changed and we continue to stress caution until SBUX can prove that it can move higher. With that said, a sustainable advance becomes more likely as SBUX approaches its split payable date on April 27th. Traders may want to add to positions if SBUX can cross over $42.41 tomorrow on midday volume of 1.3 million shares. The MACD, which had issued a buy signal, is threatening to reverse course. This indicator would likely issue a sell signal if SBUX has a negative day tomorrow.


Picked on March 29th @ $41.94
Change since picked -1.00
Stop Loss $38.50
 
Interactive Chart Quote News First Call on SBUX
 

New Candidate Updates

EQT - Equitable Resources, Inc. $73.60 +1.89 (+4.60)

Equitable Resources has set record highs in each of the last three sessions. On Thursday, shares of EQT traded to an all-time high of $74 before pulling back to close at $73.60 on volume of 339,000 shares. The stock has made five consecutive higher highs and three consecutive higher lows, so EQT may continue to rally as we move closer to the earnings release, expected April 20th before the bell. We are looking for a split announcement with the earnings report. Until then, support is Wednesday's intra-day high of $72.35 with stronger support at $70.83, the 5-dma. Resistance now stands at Thursday's intra-day high of $74 and then the $76-$77 area. A bounce off of $72.35 or a breakout above $74 on midday volume greater than 150,000 shares may be possible entry points. We have moved our stops up to $70.00 to lock in profits.


Picked on March 27th @ $67.20
Change since picked +6.40
Stop Loss @ $70.00
 
Interactive Chart Quote News First Call on EQT
 


MKC - McCormick & Company $42.47 +0.36 (+0.48)

McCormick & Company hit an all-time high on Thursday after filling in the gap created on March 30th. Shares of MKC traded as high as $42.50 just before Thursday's closing bell. Volume has been trending lower over the past two weeks and this could put a drag on the short-term upward trend. However, the volume remains relatively normal on a 6-month basis so the long-term upward trend should be able to hold. In the meantime, support is Monday's intra-day high of $42.25 with additional support at $41.57, the 5-dma. Resistance was taken out on Thursday so new resistance may show up at $43 or $44. Look for a bounce off of $42.25 or a breakout above $43.75 on midday volume of at least 90,000 shares before starting new plays. We are keeping our stops at $38.75 to limit potential losses.


Picked on March 29th @ $41.43
Change since picked +1.04
Stop Loss @ $38.75
 
Interactive Chart Quote News First Call on MKC
 


PFGC - Performance Food Group $53.38 +0.63 (+0.88)

Shares of this major food distributor lightly participated in today's monster NASDAQ (COMPX) comeback rally. The good news came yesterday when PFGC announced that it had completed its acquisition of Empire Seafood Holding Group. PFGC expects the purchase to immediately add 1 to 2 cents to its fourth quarter profits. PFGC fell just short of the $54.50 resistance during trading today. PFGC may be poised to make a substantial rally once this triple top resistance is conquered. Therefore, traders may want to add to positions tomorrow if PFGC can trade above $54.63 with first hour trading volume of 30,000 shares or more. Also please note that we have raised our stop to $51.25, which is just below the support offered by the 10-DMA of $51.88. The longer term picture for PFGC continues to be encouraging due to a rising MACD and the nice move that the OBV has been making this week.


Picked on March 25th @ $49.50
Change since picked +3.88
Stop Loss @ $51.25
 
Interactive Chart Quote News First Call on PFGC
 


RDN - Radian Group Incorporated $67.10 +2.01 (-0.65)

Financial service stocks were brought back to life today, as buyers leaped back into the financial sector and pushed the NYSE Financial Index (NFX) to a 3.50% gain. The swift recovery helped RDN to reverse a two-day decline and post a 3.08% gain to close at $67.10. Today's rally could be the first indication of the next leg up, but RDN will likely need to post heavier volume if it attempts to take out recent highs. On the day, Radian traded well below the 3-month ADV, with 269,300 shares changing hands. As for the technical indicators, RDN shares continue to look poised for higher levels. A positive MACD and a bullish crossover of the stochastic in today's session could be just what we need for a follow through. That aside, volume will still be the big question as we head into next week, so we'll look for a breakout to be accompanied by daily volume above the three-month average of 470,000 shares. Should this unfold, we'll look for resistance to emerge at the recent high of $68.98 followed by more opposition at $70. The 10-dma of $65.25 will now hold key support. Entry points could come when shares bounce off support at the 10-dma or break through the previous top on volume of at least 225,000 shares traded at noon. We now recommend that stops be raised to $65.25.


Picked on March 18th @ $61.00
Change since picked +6.10
Stop Loss @ $65.25
 
Interactive Chart Quote News First Call on RDN
 


UHS - Universal Health Services $90.43 -0.42 (+2.13)

Shares of this major hospital owner surged during Wednesday's market action. Although UHS took a bit of a break today while most traders concentrated on picking up battered technology shares, those that are long UHS have to be pleased with the stock performance during this trying week. The advance in UHS has enabled us to raise our stop to $86.50. Now that UHS has crossed the $90.00 threshold, a split announcement becomes even more likely. Another benefit of crossing over $90.00 is the strong possibility that UHS could stage a quick move to the psychologically important $100.00 level. The next resistance level before $100.00 is $96.05. We see some support provided by the 5-DMA of $88.28. Investors may want to add to positions as long as UHS stays above this support tomorrow. Additionally, momentum traders might want to jump on UHS if it can surpass today's high of $91.60 with midday volume over 190,000 shares.


Picked on March 15th @ $83.50
Change since picked +6.93
Stop Loss @ $86.50
 
Interactive Chart Quote News First Call on UHS
 

New Momentum Updates

KMB - Kimberly-Clark $66.99 +0.14 (-0.84)

KMB made an encouraging rally earlier in the day as it crossed over the critical 50-DMA of $68.09 right on the open. Unfortunately, it could not maintain this early strength and it subsequently pulled modestly back throughout the rest of the day. This pullback can most likely be attributed to a bit of portfolio shuffling out of cyclical stocks and into some of the big technology names. Although this trend may continue tomorrow, we remain encouraged about the long-term profit potential for KMB due to the stock's long term uptrend and earnings stability. Traders might want to pick up KMB tomorrow as long as the stock can stay above $66.88. Additionally, a move above today's high of $68.38, accompanied by midday volume over 1.1 million shares, could be an enticing entry point. One encouraging sign that KMB could eventually make a nice move is the Money Flow, which continues to be outstanding.


Picked on April 1st @ $67.83
Change since picked -0.84
Stop Loss $62.50
 
Interactive Chart Quote News First Call on KMB
 


UNP - Union Pacific Corporation $56.25 -0.25 (0.00)

Union Pacific Corporation has been selling off after trading to a 52-week high during Monday's session. On Thursday, shares of UNP hit an intra-day low of $55.85 before bouncing back to a close of $56.25 on heavy volume of 1.96 million shares. The stock has traded to lower highs in each of the last three sessions and the stock closed below the 5-dma for the first time since March 20th, breaking its upward trend. However, UNP was able to rally after touching in the 10-dma over the past two days so the stock could make a speedy recovery. For now, support is the 10-dma at $55.84 with stronger support at $55.36, Wednesday's intra-day low. Resistance is the 5-dma at $56.72 and then Wednesday's intra-day high of $57.15. Traders may consider entry points on a bounce off of $55.84 or a move above $56.72 on volume greater than 500,000 shares by noon. Our stops remain at $54.50.


Picked on April 3rd @ $57.35
Change since picked -1.10
Stop Loss @ $54.50
 
Interactive Chart Quote News First Call on UNP
 

Play Updates Index

 


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