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PLAY >New Updates Thursday, April 26, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

SOTR - SouthTrust Corporation $47.63 +0.78 (+1.82)

SouthTrust Corporation broke out of its trading range on Thursday. Shares of SOTR hit an all-time high of $48 before pulling back to a close of $47.63 on heavy volume of 1.52 million shares. SOTR has now made three consecutive higher lows along with two higher highs after a test of support at the 10-dma. SOTR may be ready to begin a split run as we move closer to the 2:1 split, payable on May 11th. From a technical standpoint, support is the April 19th intra-day high of $47.20 with additional support at $46.44, the 5-dma. Resistance is now up to Thursday's intra-day high of $48 and then possibly $49 or the $50 mark. Traders may consider starting new plays a bounce off of $47.20 or a breakout above $48 on volume greater than 500,000 shares by noon. Our stops remain at $44.

Picked on April 19th @ $46.96
Change since picked +0.67
Stop Loss @ $44.00
Interactive Chart Quote News First Call on SOTR

New Candidate Updates

HRB - H & R Block Inc. $53.45 -0.35 (-0.06)

H & R Block appears to be consolidating around $54.00. In fact, it's been hanging around this level for the past six trading sessions. After trading higher on Wednesday, we thought that HRB may be regaining its momentum, but after closing the Thursday lower, that turned out not to be the case. Still, we think HRB has potential because the intermediate trend remains up and support looks strong. As we said in Tuesday's write-up, HRB is supported by its up-trending 10-dma, which has advanced to $52.99. What's more, its MACD remains positive, which means there is still a good chance that HRB hasn't lost all momentum. As it now stands, the stock has strong support at its 40-dma at $50.73 and no immediate resistance until the July 1999 high of $59.50. We think this risk/reward trade off favors going long. To that end, traders considering a position in HRB should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through Tuesday's intra-day high of $53.90 or a bounce off the 10-dma before placing their trades.

Picked on April 18th @ $52.85
Change since picked +0.60
Stop Loss @ $49.25
Interactive Chart Quote News First Call on HRB

JEC - Jacob's Engineering $66.00 +1.95 (+6.50)

JEC has joined the two day party over at the NYSE and pushed its way to a new all-time intra-day high of $66.75. JEC could be one of the big winners if the theory that the economy is headed for a soft landing comes true. JEC offers a slew of services for the commercial construction industry and this sector has been remarkably resilient during this slowdown and will likely get better as the economy improves. Some of JEC's strength may be attributable to the possibility that the company is poised to make a split announcement. JEC has not split in nearly 10 years and the current share price is certainly high enough to justify a split. The technical picture is telling us that we are enjoying a classic momentum trader driven breakout. Volume, which has been more than three times the average daily volume the past two days, is outstanding. Money Flow and the OBV are confirming the drive into new high ground. Our one concern is the RSI, which is indicating an overbought condition. Nevertheless, one should enjoy the ride as long as it lasts. To that end, we could see another couple point gain tomorrow if JEC can move above $66.75. That said, do not be surprised if we wee a little profit taking near the close, as traders even up their positions going into the weekend. To protect our profits we have move our stop to $64.00.

Picked on April 24th @ $62.00
Change since picked +4.00
Stop Loss @ $64.00
Interactive Chart Quote News First Call on JEC

MKC - McCormick & Company $40.89 +0.33 (-0.31)

McCormick & Company is starting to make a recovery after hitting a 30-day low of $40 earlier this week. On Thursday, shares of MKC traded to an intra-day high of $41.63 before running into resistance at the 20-dma. The stock ended the session at $40.89 on volume of 135,000 shares. MKC has tested major support at the 50-dma and it has broken the downward trend with two higher lows. However, volume has been on the light side so MKC may be stuck in the $40-43 range until the volume picks up. The company is scheduled to appear at the Goldman Sachs Global Beverage, Food, and Tobacco Conference on May 9th, so we may see some better volume in the near future. For now, support is the 50-dma at $40.57 with stronger support at Wednesday's intra-day low of $40.25. Resistance is the 10-dma at $41.12 and then Thursday's intra-day high of $41.63. A bounce off of $40.57 or a move above $41.12 on midday volume of at least 75,000 shares may be possible entry points. We are leaving our stops at $38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked -0.54
Stop Loss @ $38.75
Interactive Chart Quote News First Call on MKC

New Momentum Updates

GTK - GTECH Holdings Corp $31.10 +0.03 (+1.31)

GTECH has taken a bit of a break from its foray into new high ground. The stock did manage to make a new high yesterday but subsequently pulled back. Nevertheless, GTK still possesses one of the most impressive charts in the market due, in part, to the excellent profit growth the company has seen from its lottery products. The stock has established some mild support at $30.88, which is just above the 5-DMA of $30.72. Traders may want to add to positions as long as GTK can stay above the 5-DMA. As always, a little patience may be rewarded if one waits for a pullback should GTK gap up two or more points on the open. If support fails we may see a mild round of profit taking down to the next area of support at the 10-DMA just below $30.00. The MACD is still solid but the Money Flow has started to pull back. Bottom line is that the momentum may be slowing. However, this scenario can quickly change and GTK may start to soar again once it trades above $32.00. Momentum traders may want to buy the stock once it crosses $32.00 on midday volume approaching 100,000 shares, otherwise keep an eye on those support levels.

Picked on April 22nd @ $29.79
Change since picked +1.31
Stop Loss $26.75
Interactive Chart Quote News First Call on GTK

HSIC - Henry Schein, Inc. $37.46 -0.93 (-0.54)

Henry Schein, Inc. sold off on a round of profit taking after hitting a 52-week high two days ago. On Thursday, shares of HSIC closed at its intra-day low of $37.46 on light volume of 205,000 shares. HSIC closed below its 5-dma for the first time since April 18th and the stock has lost some of its momentum over the past two sessions. However, the long-term trend remains healthy so HSIC may be able to hold the upward trend as we move closer to the earnings release, expected on May 1st (unconfirmed). Going forward, support is the 10-dma at $37.32 with additional support at the April 19th intra-day low of $36. Resistance has fallen to the 5-dma at $38.20 and then $39.02, Wednesday's intra-day high. Look for entry points on a bounce off of $37.32 or a move above $38.20 on volume greater than 250,000 shares by noon. We are keeping our stops at $35 as downside protection.

Picked on April 22nd @ $38.00
Change since picked -0.54
Stop Loss @ $35.00
Interactive Chart Quote News First Call on HSIC

LEA - Lear Corp. $35.92 +0.09 (+0.80)

In Tuesday's write up, we raved how Lear was upgraded by Prudential and Credit Lyonnis. Unfortunately, today LEA was downgraded by Lehman Brothers. Not that the downgrade had much impact on trading, as LEA managed to add another $0.09 to its value. What's more, this automotive supplier should continue to be the beneficiary of a lower interest rate environment since its primary customers are the big automakers. More importantly to us, though, the LEA remains healthy technically. The stock has been riding a 45-degree uptrend line since early April, moving from $28 a share to today's close of $35.92. What's more, LEA is showing no inclination to backpedal. To that end, the stock has gained support from former resistance at $35.00, with additional support provided by last week's consolidation level at $34.00. As for resistance, LEA has clear sailing until the April 1999 highs of $50 (though it could hit mild resistance at the psychologically-significant $40 level). Traders considering a position in LEA should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through today's intra-day high of $36.30 or a bounce off support at $35.00 before placing their trades.

Picked on April 24th @ $36.20
Change since picked -0.28
Stop Loss @ $33.88
Interactive Chart Quote News First Call on LEA

Play Updates Index


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