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PLAY >New Updates Thursday, April 12, 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 $74.26 +1.66 (+2.51)

The two "buy" ratings from J.P. Morgan and Jefferies & Co. that we reported Wednesday may have been the catalyst behind today's 2.29% rally in BJ Services. Adding more fuel to the fire was the AMEX Oil Service Index (OSX), which rose 2.16 points, or 1.85%, to close at $549.58. But whatever it was that created the rally, we feel the stock remains poised for higher levels in the upcoming week. The technical indicators certainly support such an argument, with the MACD starting to trend higher and the stochastic issuing a buy signal on the day. We also like the fact that shares came within 1 cent of hitting the 4/10 high of $75. Three intraday highs in a row at this level, however, tell us that there is ample resistance at this point. With that said, the $75 mark will remain our initial resistance, trailed by a more difficult challenge at the $80 mark. The 20-dma of $72.35 has been holding firm support over this same period and should present us with a good base. So, with this in mind, traders looking for additional entry points should wait for a sharp break through resistance at the $75 high or a bounce off the 5-dma of $80.90. We'll continue to hold our stop at $70.


Picked on April 8th@ $71.75
Change since picked +2.51
Stop Loss @ $70.00
 
Interactive Chart Quote News First Call on BJS
 


PFGC - Performance Food Group $53.91 +0.95 (+0.41)

PFGC held on to its value, and then some, during a week that was characterized by a monster technology rally. The highlight of the week for PFGC was Wednesday's split announcement. The 2:1 split has a payable date of April 30th. Obviously, PFGC now moves from our Split Candidate list to our Split Run list. We fully expect PFGC to stage a nice rally starting Monday if the market can maintain its strength and the bulls broaden their focus to more than just technology stocks. However, the $54.50 level continues to offer PFGC some stubborn resistance. Look for PFGC to really start moving if it can get past this resistance on Monday and accomplish this feat with midday volume approaching 90,000 shares. You might want to wait to add to positions if PFGC gaps up to the next resistance level of $56.75 on Monday. In the event of a pullback, traders may still be comfortable adding to positions if PFGC can stay above the support offered by last week's low print of $53.00. Although the Money Flow pulled back a bit towards the end of last week, the MACD and OBV are both solid and suggest that there is another positive run in PFGC's future.


Picked on March 25th @ $49.50
Change since picked +4.41
Stop Loss @ $52.50
 
Interactive Chart Quote News First Call on PFGC
 

New Candidate Updates

EQT - Equitable Resources, Inc. $74.91 +0.46 (+2.46)

Equitable Resources has cooled off over the past two sessions after hitting an all-time high of $75.63 earlier in the week. On Thursday, shares of EQT fell to an intra-day low of $73.95 before bouncing back to close at $74.91 on volume of 138,000 shares. The energy sector has lost some of its momentum and EQT was ripe for profit taking so we are not surprised to see it take a step back. However, the stock remains in a firm upward trend so it could break out to new highs as we approach its earnings release on April 20th before the bell. From a technical standpoint, EQT has support at Thursday's intra-day low of $73.95 with additional support at $72.47, the 10-dma. Resistance has come in at the all-time high of $75.63 and then possibly $77 or $78. Traders may consider starting new plays on a bounce off of $73.95 or a breakout above $75.63 on volume of at least 100,000 shares by noon. We are keeping our stops at $72.25, just under the 10-dma.


Picked on March 27th @ $67.20
Change since picked +7.71
Stop Loss @ $72.25
 
Interactive Chart Quote News First Call on EQT
 


MKC - McCormick & Company $41.70 -0.40 (-0.45)

MKC has been selling off as investors begin to rotate out of safety and back into tech issues. On Thursday, shares of MKC traded to an intra-day low of $41.35 before recovering late in the session. The stock ended the day at $41.70 on light volume of 93,800 shares. MKC has made three consecutive lower highs on less-than-average volume and MKC closed below the 10-dma for the first time since March 23rd. On the positive side, the stock was able to bounce off of the 20-dma in the past two sessions. Going forward, support is the 20-dma at $41.27 with stronger support at $40.95, Wednesday's intra-day low. Resistance has fallen to the 10-dma at $42.06 and then Tuesday's intra-day high of $42.50. A bounce off of $41.27 or a move above $42.06 on midday volume greater than 75,000 shares may be possible entry points. Our stops remain at $38.75 as downside protection.


Picked on March 29th @ $41.43
Change since picked +0.27
Stop Loss @ $38.75
 
Interactive Chart Quote News First Call on MKC
 


TARO - Taro Pharmaceutical Industries $50.65 -0.14 (+3.90)

Prospects for Taro have become noticeably brighter as of late. Over the past year, the company received seven FDA approvals and saw annual revenues exceed the $100 million mark for the first time ever. In Thursday trading, shares of TARO did give back a little ground from Wednesday's sharp rally and closed the session at $50.65, down 14 cents. What was encouraging, though, was the lightness of volume. The stock normally logs around 146,500 shares based on a three-month average, but Thursday's decline came on volume of just 59,700 shares. This is a clear indication of a lack of sellers at present levels. Bearing this in mind, we feel there's a good chance the stock will continue to exhibit more upside momentum. To that end, we'll look for initial resistance to come at the $52.10 mark (all-time high). A potentially harder barrier will follow at $55. Support will come at the half-century mark, with an additional base at the 4/10 intra-day low of $48.24, bolstered by the 10-dma of $47.80. Traders could consider entry points when TARO shares bounce off support or break above $52.10 on volume of at least 75,000 shares traded by noon. We'll continue to hold a firm stop at $44.


Picked on April 10th@ $49.45
Change since picked +1.20
Stop Loss @ $44.00
 
Interactive Chart Quote News First Call on TARO
 

New Momentum Updates

ACI - Arch Coal Incorporated $32.25 +0.35 (+1.89)

As the demand for more power continues to surge, the market for coal stocks continues to stay strong. More evidence of this came on Thursday, as the largest publicly traded coal company, ACI, furnished investor with a nice rally late in the day. Despite a gap down at the open, ACI shares reached higher ground by Thursday's closing bell, finishing up 35 cents to $32.25. Volume trailed the three-month average, however, as 293,800 shares crossed the tape. We will likely need volume to increase to at least the three-month ADV of 590,600 shares if the stock is to follow through with more gains on Monday. Nevertheless, we want to point out that the bigger picture remains in tact for our play, as the stock continues to ascend sharply higher without breaking the upward trendline. The MACD and On-Balance Volume indicators also remain strong. With that said, should ACI reach for higher levels in the upcoming week, we'll look for further resistance to occur at the $33.72 mark (52-week high), trailed by a tougher barrier at $35. Support will come at the 5 and 10-dma's of $31.83 and $30.76, respectively. As far as additional entry points, we'll look for a run above $33.72 or a pullback to the 5- or 10-dma's to signal our buys.


Picked on April 5th@ $31.50
Change since picked +0.75
Stop Loss @ $30.00
 
Interactive Chart Quote News First Call on ACI
 


KMB - Kimberly-Clark $65.53 +0.33 (-0.97)

KMB has been a favorite vehicle for long-term investors looking for stable growth and relative security in a volatile market. The company's long list of well known industrial and home use paper products provides an enviable level of earnings stability during an economy that is experiencing a slowdown in many areas. KMB has been pulling back a bit recently in a likely attempt to consolidate following last month's nice move to the low $70's. Look for KMB to start to rally this week once some profit taking hits the technology stock universe. One possible entry point for traders may be when KMB trades above its 5-DMA of $66.22. It would be encouraging if KMB could make this move with first hour trading volume of over 400,000 shares. We like the fact that down days for KMB have mostly been accompanied by relatively low volume. This fact is reflected in a stable OBV. The MACD is still negative but could easily issue a buy signal if KMB can just move a little higher this week. Momentum investors looking for an entry point may want to wait for not only the MACD to turn positive but also wait for the stock to move above the 50-DMA of $68.31 before going long.


Picked on April 1st @ $67.83
Change since picked -2.30
Stop Loss $62.50
 
Interactive Chart Quote News First Call on KMB
 


SLXP - Salix Pharmaceuticals, Ltd. $16.45 0.00 (+1.39)

Salix is breaking out to new highs. On Thursday, shares of SLXP traded to an all-time high of $16.75 before pulling back to a close of $16.45 on volume of 123,000 shares. The stock has now made four consecutive higher highs coupled with higher lows and heavy volume. Momentum is quite strong so SLXP could continue to hit new highs. For now, the stock has support is Thursday's intra-day low of $16.37 with additional support at the 5-dma, currently at $15.94. Resistance is now up to Thursday's intra-day high of $16.75 and then possibly $17 or $17.50. Consider entry points on a bounce off of $16.37 or a breakout above $16.75 on volume of at least 70,000 shares by noon. We are leaving our stops at $14.75 to limit potential losses.


Picked on April 8th @ $15.06
Change since picked +1.39
Stop Loss @ $14.75
 
Interactive Chart Quote News First Call on SLXP
 


UNP - Union Pacific Corporation $56.98 +0.06 (+1.03)

As the demand for more power continues to surge, the market for coal stocks continues to stay strong. More evidence of this came on Thursday, as the largest publicly traded coal company, ACI, furnished investor with a nice rally late in the day. Despite a gap down at the open, ACI shares reached higher ground by Thursday's closing bell, finishing up 35 cents to $32.25. Volume trailed the three-month average, however, as 293,800 shares crossed the tape. We will likely need volume to increase to at least the three-month ADV of 590,600 shares if the stock is to follow through with more gains on Monday. Nevertheless, we want to point out that the bigger picture remains in tact for our play, as the stock continues to ascend sharply higher without breaking the upward trendline. The MACD and On-Balance Volume indicators also remain strong. With that said, should ACI reach for higher levels in the upcoming week, we'll look for further resistance to occur at the $33.72 mark (52-week high), trailed by a tougher barrier at $35. Support will come at the 5 and 10-dma's of $31.83 and $30.76, respectively. As far as additional entry points, we'll look for a run above $33.72 or a pullback to the 5- or 10-dma's to signal our buys.


Picked on April 5th@ $31.50
Change since picked +0.75
Stop Loss @ $30.00
 
Interactive Chart Quote News First Call on UNP
 

Play Updates Index

 


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