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PLAY >New Updates Tuesday, May 01, 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 $46.52 -1.03 (-2.08)

SouthTrust sold off after hitting an all-time high during Monday's session. On Tuesday, shares of SOTR traded to an intra-day low of $45.86 before bouncing back to a close of $46.52 on volume of 1.34 million shares. The stock has slipped back into its $43-47 trading range and has closed below the 10-dma for the first time since April 17th. However, SOTR was able to hold the 20-dma and the volume has been trending higher over the past four sessions. The stock could be blowing off steam before resuming its split run into the May 11th payable date. In the meantime, support is the 20-dma at $45.85 with additional support at $45.45, the April 23rd intra-day low. Resistance has come in at the 10-dma, currently at $47.43, and then the April 26th intra-day high of $48. Traders may consider opening new positions on a bounce off of $45.85 or a move above $47.43 on volume greater than 500,000 shares by noon. We are leaving our stops at $44 to limit potential losses.


Picked on April 19th @ $46.96
Change since picked -0.44
Stop Loss @ $44.00
 
Interactive Chart Quote News First Call on SOTR
 

New Candidate Updates

ACS - Affiliated Computer Services $72.93 +0.93 (+1.54)

Investors have to be impressed with the way ACS avoided the epic bear market in technology stocks. Now, ACS is climbing even higher due to the renewed interest in the technology sector. That said, ACS did suffer from a bit of profit taking into the close following the establishment of a new intra-day high of $74.00. Additionally, today's volume of just under 1 million shares was fairly strong and much of the volume came near the close when the stock was pulling back. Consequently, we have raised our stop to $71.00, just in case today's late action is foretelling more profit taking to come. That said, the RSI still has room to move before indicating an overbought condition. A break above $74.00 tomorrow might offer momentum traders yet another good entry opportunity for quick profits. The longer term prospects for more price appreciation are encouraging, especially since the MACD is in a solid rally mode.


Picked on April 26th @ $69.13
Change since picked +3.80
Stop Loss $71.00
 
Interactive Chart Quote News First Call on ACS
 


AYE - Allegheny Energy Inc. $51.38 +0.22 (+0.78)

Allegheny Energy opened at an all-time high of $51.75 on Tuesday morning. The stock spent the rest of the day fighting to hold on to the gain. Shares of AYE traded to an intra-day low of $50.55 before bouncing back to close at $51.38 on heavy volume of 893,000 shares. AYE has put in seven consecutive higher lows and volume is trending higher, so the stock could continue to hit new highs as we move closer to AYE's annual meeting, and potential split announcement, on May 10th. For now, support has moved up to Tuesday's intra-day low of $50.55 with stronger support at $50.03, the 5-dma. Resistance is Tuesday's intra-day high of $51.75 and then $53. Look for entry points on a bounce off of $50.55 or a breakout above $51.75 on midday volume of at least 300,000 shares. Our stops remain at $47.


Picked on April 29th @ $50.60
Change since picked +0.78
Stop Loss @ $47.00
 
Interactive Chart Quote News First Call on AYE
 


HRB - H & R Block Inc. $53.91 -1.09 (-0.69)

Last week we went on ad nauseam about HRB consolidating around $54. Unfortunately, this week we find ourselves doing more of the same. The omnipresent tax preparer closed the day down $1.09 to $53.91 on light volume of 379,900 shares traded, which means, thankfully, there wasn't a mad rush to the exit. The $55 level appears to be presenting HRB with tough resistance. Yesterday, it hit this level and was stopped in its tracks. Today, it hit $54.75 before being turned backed. The good news is HRB caught support at its 10-dma at $53.87, so it could be consolidating before attempting another move north. As it now stands, HRB has strong support at its 40-dma at $51.03 and immediate resistance at $55.00. Traders considering a position in HRB should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through resistance at $55.00 or a bounce off the 10-dma before placing their trades.


Picked on April 18th @ $52.85
Change since picked +1.06
Stop Loss @ $49.25
 
Interactive Chart Quote News First Call on HRB
 


JEC - Jacob's Engineering $66.50 +0.58 (+0.23)

JEC got off to a slow start this week. However, there was a positive report about the burgeoning demand for the type of construction engineering services that JEC provides that circulated through the news wires yesterday. It has been well documented that California has been woefully negligent in updating its energy infrastructure. When the state finally bites the bullet, it could lead to some new huge contracts for JEC, especially since the company is located in Pasadena, CA. Technically speaking, this stock is consolidating between support of $63.38 and resistance of $67.00. A break above $67.00 could result in a nice bullish move. Some traders might want to buy a break above this price, especially if midday volume exceeds 100,000 shares. A gap up to $68.00 or higher on tomorrow's opening might result in a bit of a pullback that may offer traders a better entry price. The MACD, Money Flow and OBV are all outstanding and point towards more gains in the future. However, the RSI is indicating a short term overbought condition. Therefore, one should be mindful of their stops (as always), just in case there is a pullback.


Picked on April 24th @ $62.00
Change since picked +4.50
Stop Loss @ $64.00
 
Interactive Chart Quote News First Call on JEC
 


TTC - Toro Company $45.70 -0.45 (-0.55)

Toro has been pretty much ignored by market participants so far this week. Nevertheless, we still like the potential for profits with this play as we enter the peak season for lawn and gardening equipment demand. TTC is also a strong value play due to its low P/E of 13.06. Today's volume of 32,400 shares was very light and was barely more than a third of the stock's average daily volume of 93,000. This fact, which is reflected by a Money Flow that remains decidedly positive, tells us that there was very little interest in selling TTC during today's pullback. A bounce off support offered by the 10-DMA of $45.09 might provide a good entry point. If TTC can close tomorrow above $46.63 and finish with volume approaching 100,000 shares, the stock might be a more compelling buy on Thursday's open. Keep in mind that a gap up of a dollar or more might result in a bit of a pullback in the first hour of trading that may provide patient investors with a better price than the opening print. One technical indicator that is especially encouraging is the MACD, which appears to be suggesting that TTC is one the verge of starting a sustainable rally.


Picked April 29th @ $46.25
Change since picked -0.55
Stop Loss @ $43.50
 
Interactive Chart Quote News First Call on TTC
 

New Momentum Updates

GTK - GTECH Holdings Corp $33.79 +1.19 (+1.55)

GTECH is living up to the "tech" in its name. GTK started the week in splendid fashion by achieving new highs that were characterized by strong buying in the technology sectors. Today's move was particularly impressive because volume was excellent at 600,000 shares, which was more than twice the average daily volume of 287,000 shares. This heightened activity is indicative of strong buying from the momentum crowd. One potential entry point would present itself tomorrow if GTK moves above $34.30 accompanied by midday volume exceeding 150,000 shares. That said, it is important to note that the RSI is indicating an extremely overbought condition. The last time the RSI was at a similar level, the stock traded sideways for a few days and then pulled back. Therefore, we have raised our stop to $32.00. In the meantime, enjoy the ride should GTK continue to make new highs.


Picked on April 22nd @ $29.79
Change since picked +4.00
Stop Loss $32.00
 
Interactive Chart Quote News First Call on GTK
 


LEA - Lear Corp. $35.93 -0.07 (-0.05)

Today, Lear announced that it was named a General Motors Supplier of the Year because of its superior performance in quality, service, technology and price. Not that the kudos from GM did much for LEA's stock, which closed down $0.07 to $35.93. For the past five sessions, LEA has been stopped at the $36.00 level. Today, the stock was stopped at $35.93. Lear appears to be consolidating between $35 and $36 and is forming a bullish pennant, which has us thinking the stock is biding its time before making a move higher. To that end, LEA has been riding a 45-degree uptrend line since early April. At this point, the stock has gained support from former resistance at $35.00. Overhead, LEA has immediate resistance at $36, and then it's smooth 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 $36.40 or a bounce off support at $35.00 before placing their trades.


Picked on April 24th @ $36.20
Change since picked -0.27
Stop Loss @ $33.8
 
Interactive Chart Quote News First Call on LEA
 

Play Updates Index

 


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