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PLAY >New Updates Tuesday, April 10, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

BJS - BJ Services Company $74.00 +1.45 (+2.25)

Higher prices for oil and natural gas are generating strong demand for BJS's drilling services, which should help the company to generate an increase in annual earnings of 79%. Turning to the chart, BJS shares delivered another nice rally on Tuesday, recovering 2% to close at $74.00. The advance came on good volume of 1,755,600 shares, which topped the three-month average. This is further indication that the stock is attracting more investors with each leg higher. What's more, the stock was able to gap above Monday's resistance at the previous high of $73.95 and hold ground above the 20-dma of $72.54. The short-term technical picture also looks encouraging, with bullish crossovers in the MACD and stochastic pointing to more upside strength. With all these indications, a near-term rally to $75 or $80 can be expected. For entry points, we'll now look for an upside move to encounter resistance at $75 and then at the 50-dma of $76.98. Support will come in at the 20-dma. Traders can consider entries when the stock breaks through resistance or bounces from support on good volume of 750,000 shares traded by midday. We suggest moving stops to $70 to help limit downside risk and lock in gains.


Picked on April 8th@ $71.75
Change since picked +2.25
Stop Loss @ $70.00
 
Interactive Chart Quote News First Call on BJS
 

New Candidate Updates

EQT - Equitable Resources, Inc. $75.63 2.53 (+3.18)

Equitable Resources has been on fire over the past two weeks, posting gains in eight of the last 10 sessions. On Tuesday, shares of EQT traded in positive territory for the entire session. The stock closed at an all-time high of $75.63 on volume of 170,000 shares. EQT continues to move higher on rising crude oil prices and strong momentum in the energy sector. The stock could hold its upward trend as we move closer to the earnings release on April 20th before the bell. Until then, support is the April 5th intra-day high of $74.00 with stronger support at $73.30, the 5-dma. Resistance was taken out on Tuesday so new resistance may show up at $77.50 or $90. Look for a bounce off of $74.00 or a breakout above $77.50 on midday volume greater than 150,000 shares before starting new plays. We have moved our stops up to $72.45 to lock in profits.


Picked on March 27th @ $67.20
Change since picked +8.43
Stop Loss @ $72.25
 
Interactive Chart Quote News First Call on EQT
 


MKC - McCormick & Company $42.40 +0.39 (+0.25)

McCormick & Company is trending higher at a slow and steady pace. On Monday, the stock hit an all-time high of $42.94 before pulling back to close at $42.01 on volume of 195,000 shares. Daily volume has been cooling down over the past week and MKC appears to be falling back on its long-term upward trend which is much more sustainable. From a technical standpoint, the stock has support at the 5-dma, currently at $42.23, with additional support at Tuesday's intra-day low of $42. Resistance remains at Friday's intra-day high of $42.60 and then the all-time high of $42.94. Traders may consider entry points on a bounce off of $42.23 or a move above $42.60 on volume of at least 75,000 shares by noon. We are keeping our stops at $38.75 to limit potential losses.


Picked on March 29th @ $41.43
Change since picked +0.97
Stop Loss @ $38.75
 
Interactive Chart Quote News First Call on MKC
 


PFGC - Performance Food Group $54.30 +1.12 (+0.80)

PFGC managed to maintain investor interest so far this week despite a decided focus on buying battered technology stocks. PFGC, which is a huge supplier of thousands of food products, continues to attract investment because of its stable earnings and a reasonable P/E of 29.84. Still, the stock is finding the $54.50 resistance level tough to surpass. During the past week, the 5-DMA has provided excellent support and today it closed at $53.41. Please note that we have raised our suggested stop to $52.50. The very strong MACD and OBV are encouraging signs that PFGC may be able to continue its advance. The RSI is confirming the possibility for more gains because this indicator is telling us that PFGC has some upside room before becoming overbought. That said, a move above this resistance accompanied by first hour trading volume approaching 50,000 shares could prove to be an excellent trading opportunity. Should that happened, momentum may enable the stock to establish a new 52-week high above $56.75.


Picked on March 25th @ $49.50
Change since picked +4.80
Stop Loss @ $52.50
 
Interactive Chart Quote News First Call on PFGC
 


SRCL - Stericycle, Inc. $47.45 +0.20 (+2.45)

Stericycle closed above resistance on Monday following eight sessions of sideways trading. Shares of SRCL traded to an intra-day high of $47.40 just before the closing bell. On Tuesday, the stock hit an all-time high of $49.10 before pulling back to close at $47.45 on volume of 329,000 shares. SRCL has regained some of its momentum, but the volume is still relatively light compared to the volume at the end of March. The company is expected to announce earnings on May 1st after the bell, so the volume may pick up very soon. In the meantime, SRCL has light support at Tuesday's intra-day low of $47.10 with stronger support at $45.94, the 5-dma. Resistance is now at Tuesday's intra-day high of $49.10 and then the $50 mark. Consider opening new positions on a bounce off of $47.10 or a breakout above $49.10 on volume greater than 100,000 shares by noon. We are bumping our stops up to $44.70 to protect additional capital.


Picked on April 5th @ $46.00
Change since picked +1.45
Stop Loss @ $44.70
 
Interactive Chart Quote News First Call on SRCL
 


UHS - Universal Health Services $92.30 +0.40 (+1.78)

Shares of this major hospital owner and operator are creeping ever closer to the psychologically important $100.00 level. Although the focus of today's market rally was concentrated upon the technology stocks, UHS has nevertheless been able to keep its momentum going. UHS is scheduled to release its earnings late during the trading day of April 17th. A split announcement, in conjunction with the earnings release, is becoming increasingly likely due to the share price advance. UHS appears poised to test the resistance of $96.03. Although we will be exiting this position before the earnings release, some aggressive traders may want to add to positions if UHS can hold the support offered by the 5-DMA of $91.19. Momentum traders may enjoy a nice quick profit if UHS can move above today's high of $93.00, accompanied by first hour trading volume of over 100,000 shares. The MACD is trending nicely higher and the RSI is indicating that there is plenty of room before the stock would be considered overbought. Both of these indicators point towards continued gains.


Picked on March 15th @ $83.50
Change since picked +8.80
Stop Loss @ $89.00
 
Interactive Chart Quote News First Call on UHS
 

New Momentum Updates

ACI - Arch Coal Incorporated $32.91 +1.19 (+2.55)

Although the price of coal has risen sharply over the past couple of months, the cost of producing electricity from coal is still less expensive than natural gas. This additional demand should continue to bring plenty more buyers to the coal industry. On the day, a broad market recovery helped fuel the coal sector higher, as ACI gained 3.75%. With this rally, the stock was able to punch through its previous top and set an all-time new high of $33.47. Volume came in 24% above the three-month ADV with 715,000 shares traded. This gives us additional confidence that today's advance will be followed by more short-term strength on the upside. We do need to point out, however, that the stochastic is a bit rich, but could be offset by a positive MACD and a strong uptrend in the OBV. So, should an extended rally unfold, we'll anticipate initial resistance to emerge at today's intra-day high of $33.47. Support looks good at the 5-dma of $31.27, and just lower at the 10-dma of $30.30. Look for entries if midday volume can reach 280,000 shares, as ACI bounces off support or breaks above resistance at $33.47. Our stop is now just under the 10-dma at $30.00.


Picked on April 5th@ $31.50
Change since picked +1.41
Stop Loss @ $30.00
 
Interactive Chart Quote News First Call on ACI
 


KMB - Kimberly-Clark $66.40 -1.08 (-0.10)

KMB has been able to outperform the market for more than a year now. It is not surprising then that the stock has taken a back seat as sideline cash piles into technology stocks, which are perceived to be a bargain. We have seen rotations out of cyclical value stocks like KMB into the technology sector before. The ebb and flow has a habit of reversing course. We fully expect KMB to renew its rally once the technology rally subsides. KMB's down days continue to be accompanied by relatively light volume. This fact is an indication that there are plenty of long-term investors in KMB, which helps the stock to maintain its value. The MACD is right on the verge of issuing a buy signal and probably will offer this signal with any decent KMB price advance of a point or more tomorrow. KMB may offer a good buying opportunity if it can climb above its 50-DMA of $68.28, especially if it accomplishes this move with midday volume exceeding 1.1 million shares.


Picked on April 1st @ $67.83
Change since picked -1.43
Stop Loss $62.50
 
Interactive Chart Quote News First Call on KMB
 


SLXP - Salix Pharmaceuticals, Ltd. $16.01 +0.27 (+0.95)

Salix has been moving higher over the past five sessions in anticipation of its presentation at the Robinson-Humphrey Institutional Conference. The company appeared at 1:30 p.m. EDT on Tuesday and the stock responded positively shortly afterwards. Shares of SLXP traded to an intra-day high of $16.10 (3:00 p.m.) before settling at $16.01 on heavy volume of 193,000 shares. The volume was particularly impressive due to the increased frequency of 10,000+ share trades over the past two days. Going forward, support is Tuesday's intra-day low of $15.42 with additional support at $15.09, the 5-dma. Resistance is the all-time high of $16.31 and then possibly $17 or $17.50. Traders should be looking for entry points on a bounce off of $15.42 or a breakout above $16.31 on midday volume greater than 70,000 shares. We have moved our stops up to $14.75 to limit potential losses.


Picked on April 8th @ $15.06
Change since picked +0.95
Stop Loss @ $14.75
 
Interactive Chart Quote News First Call on SLXP
 


UNP - Union Pacific Corporation $57.00 +1.99 (+1.05)

Union Pacific rallied on Tuesday after its Chairman and CEO, Dick Davidson, said that he is comfortable with analysts' expectations due to a 12% volume increase in its coal business during the first quarter. Shares of UNP traded to an intra-day of $57.37 before pulling back to close at $57.00 on volume of 2.63 million shares. UNP broke a four-day losing streak on heavy volume, so the stock may challenge its recent highs as we approach the earnings announcement scheduled for April 20th. For now, UNP has support at the April 5th intra-day high of $56.50 with additional support at $56.14, the 5-dma. Resistance is the April 3rd intra-day high of $57.40 and then possibly $58 or $60. A bounce off of $56.50 or a move above $57.40 on midday volume of at least 600,000 shares may be possible entry points. Our stops remain at $54.50 as downside protection.


Picked on April 3rd @ $57.35
Change since picked -0.35
Stop Loss @ $54.50
 
Interactive Chart Quote News First Call on UNP
 

Play Updates Index

 


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