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PLAY >New Updates Tuesday, May 08, 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 $46.75 -0.09 (+0.44)

SouthTrust Corporation has been consolidating in the $45.50-$47.50 range over the past five days. On Tuesday, shares of SOTR traded to an intra-day high of $47.27 before pulling back to a close of $46.75 on light volume of 451,000 shares. The stock is gaining momentum as we approach the 2:1 split, payable on May 11th, so SOTR could make a run at its all-time high in front of the payable date. For now, support is the 20-dma at $46.25 with stronger support at $45.75, Monday's intra-day low. Resistance has moved up to Tuesday's intra-day high of $47.27 and then the April 26th intra-day high of $48. Traders may consider starting new plays on a bounce off of $46.25 or a move above $47.27 on volume of at least 500,000 shares by noon. We are leaving our stops at $44 and we plan to exit this play by Thursday afternoon.


Picked on April 19th @ $46.96
Change since picked -0.21
Stop Loss @ $44.00
 
Interactive Chart Quote News First Call on SOTR
 


XTO - Cross Timbers Oil Co. $26.85 +1.23 (+2.02)

Cross Timbers Oil enjoyed a very strong day, even though gains in the AMEX Oil and Gas Index (XOI) were modest. It is entirely possible that XTO is a beneficiary of a consolidation trend within the industry. Barrett Resources (NYSE:BRR) agreed to be acquired yesterday by Williams Cos (NYSE:WMB), and, consequently, enjoyed a nice spike up in its share price. Cross Timbers Oil and Barrett Resources are similar companies because both are land based regional drillers. Today's rally was technically significant because XTO crossed over and closed above its 50-DMA of $26.41. The last time this event occurred, XTO traded straight to $28.75. XTO may test this resistance soon; therefore, additional positions could probably be added tomorrow assuming XTO stays above the 50-DMA and does not gap up to the $28.75 resistance on the open. Today's volume of 888,700 was solid and we would be more encouraged about adding to positions if XTO starts ticking up with first hour trading volume exceeding 200,000 shares. Even more encouraging is the fact that a rally tomorrow would likely cause the MACD to issue a buy signal. Please note that we have raised our trailing stop to $25.50.


Picked May 6th @ $24.83
Change since picked +2.02
Stop Loss @ $23.50
 
Interactive Chart Quote News First Call on XTO
 

New Candidate Updates

ASD - American Standard Companies $62.32 -0.18 (-0.18)

Momentum carried American Standard Companies, Inc. to an all-time high of $63.30 during Monday's session. Unfortunately, the stock reversed directions as fears of a weakening economy resurfaced. On Tuesday, shares of ASD fell to an intra-day low of $61.10 before bouncing back to close at $62.32 on volume of 309,000 shares. ASD remains in an upward trend and the recent test of support should allow the stock to move to new highs if the market heats up again. In the meantime, support is now up to the 5-dma at $62.09 with additional support at $61.04, the 10-dma. Resistance has come in at Tuesday's intra-day high of $62.62 and then Monday's intra-day high of $63.30. A bounce off of $62.09 or a move above $62.62 on midday volume greater than 250,000 shares may be possible entry points. We are keeping our stops at $58.50 as downside protection.


Picked on May 6th @ $62.50
Change since picked -0.18
Stop Loss @ $58.50
 
Interactive Chart Quote News First Call on ASD
 


AYE - Allegheny Energy, Inc. $51.58 -0.42 (+0.58)

Allegheny Energy, Inc. sold off slightly on Tuesday after closing at an all-time high of $52 in the previous session. Shares of AYE traded in a tight range, hitting an intra-day high of $51.80 and an intra-day low of $51.15, before closing at $51.58 on volume of 413,000 shares. Volume has stabilized following the secondary offering on April 27th so AYE may be able to rally as we move closer to the Annual Meeting on Thursday. We are looking for a split announcement out of the meeting. Until then, support is the 5-dma at $50.97 with stronger support at $50.50, the 10-dma. Resistance has moved up to Monday's intra-day high of $52 and then possibly $53 or $54. Look for a bounce off of $50.97 or a move above $52 on midday volume of at least 300,000 shares before opening new positions. Our stops remain at $47.


Picked on April 29th @ $50.60
Change since picked +0.98
Stop Loss @ $47.00
 
Interactive Chart Quote News First Call on AYE
 


BMET - Biomet Inc. $41.30 -0.94 (-1.25)

Biomet has been consolidating on light volume over the past five sessions. On Tuesday, shares of BMET fell to an intra-day low of $40.50. However, the stock made a recovery after a test of the 20-dma. BMET ended the day at $41.30 on volume of 1.33 million shares. The stock closed below the 10-dma for the first time since April 16th and it is beginning to form a short-term downward trend. On the positive side, the move is coming on light volume so BMET may be able to hold the $40 mark if the stock continues to trend lower. Going forward, support has fallen to the 20-dma at $40.40 with additional support at $40, the April 19th intra-day high. Resistance is now at Monday's intra-day high of $43 and then the all-time high of $43.68. Traders should be looking for entry points on a bounce off of $40.40 or a move above $43 on volume greater than 900,000 shares by noon. We are leaving our stops at $39.50 to limit potential losses.


Picked on May 3rd @ $42.16
Change since picked -0.86
Stop Loss @ $39.5
 
Interactive Chart Quote News First Call on BMET
 


HRB - H & R Block Inc. $54.46 +0.25 (+1.08)

H & R Block righted a ship that had been listing late last week. Over the past two days, this omnipresent tax preparer added over a dollar to its value to regain support above its 10-dma at $54.00. This mini rally has been fueled in part by the company's announcement late last Thursday that it expects to exceed the First Call consensus EPS of $2.91 for 2001. As for the current technical picture, HRB has support at its 20-dma at $53.20 and immediate resistance at $55.00. The MACD remains negative (but just barely) and On-Balance Volume is beginning to show an upside trend. 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 20-dma at $53.21 before placing their trades.


Picked on April 18th @ $52.85
Change since picked +1.61
Stop Loss @ $49.25
 
Interactive Chart Quote News First Call on HRB
 


TTC - Toro Company $46.30 -0.40 (-0.41)

Shares of TTC opened just above the resistance of $46.84 but could not find any more buyers and subsequently pulled back. Today's volume of 28,700 shares was very light. Despite these facts, TTC may still be a compelling buy for many traders if it can move above $47.00 tomorrow accompanied by midday volume exceeding 50,000 shares. The stock is within shouting distance of its 52-week high of $47.65. Still, TTC trades at a very low P/E of 13.23 and the company is entering its busiest time of year. Therefore, there appears to be enough positive factors to entice buying. The technical picture is also good. TTC enjoys a steadily rising 50-DMA, which closed today at $44.56 and the stock has seen strong Money Flow for most of this year. The MACD is in positive territory and the RSI has some breathing room before indicating an overbought condition.


Picked April 29th @ $46.25
Change since picked +0.05
Stop Loss @ $43.50
 
Interactive Chart Quote News First Call on TTC
 

New Momentum Updates

GTK - GTECH Holdings Corp $35.25 +1.29 (+1.25)

There was a decided interest in driving up the shares of GTK today. This lottery equipment concern managed to make a new high yesterday of $35.70 before pulling back into the close. Today's attempt to establish yet another new high fell a little bit short. Please note that we have raised our trailing stop to $34.00, just in case the momentum is starting to wane. The RSI is indicating an extremely overbought condition. This fact does not preclude the possibility that momentum traders may continue to drive up the price of GTK. However, we placed our stop at today's low print because a drop below this price could result in a bit of profit taking. Traders may be able to squeeze out some more profits by entering a trade once GTK crosses $35.70 with first hour trading volume exceeding 100,000 shares. Traders should probably be cautious about entering a new position if GTK gaps up to $37.00 or higher on the open, in case the stock experiences quick profit taking the way it did on Monday.


Picked on April 22nd @ $29.79
Change since picked +5.46
Stop Loss $32.00
 
Interactive Chart Quote News First Call on GTK
 


LEA - Lear Corp. $36.37 -0.96 (-2.13)

Lear has succumbed to some profit taking this week after gaining two dollars this past Friday. Still, we're not terribly concerned. The sell off that occurred during Monday's and today's sessions occurred on below-average volume of 325,000 shares. What's more, LEA's MACD is remains positive and its On-Balance Volume, which is flattening, hasn't reversed course. At this point, LEA is supported by its 20-dma at $35.12, followed by the bottom of its recent consolidation range at $35.00. Overhead, LEA has immediate resistance at Friday's intra-day high of $38.50. Should LEA breach this level, there is little to slow it down 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 $37.60 or a bounce off support at $35.00 before placing their trades.


Picked on April 24th @ $36.20
Change since picked +0.17
Stop Loss @ $33.88
 
Interactive Chart Quote News First Call on LEA
 


WSM - Williams Sonoma Inc. $31.37 -0.65 (-1.14)

WSM succumbed to some profit taking on Monday and Tuesday. On Monday WSM lost $0.49 and today it shed another $0.65. There is not need to panic, though, because volume averaged 325,000 through both days, which is roughly 200,000 less than the three-month daily average. At this point, its possible that WSM could be stalling ahead of its earnings release on May 15. On the other hand, it could just be consolidating before attempting another move higher. We think it's the latter. To that end, WSM's technical indicators look favorable. The MACD and On-Balance Volume both look strong. On the downside, WSM has a first level at its 10-dma at $30.53, followed by its 200-dma at $27.64. Traders considering a position in WSM should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through Friday's close of $32.14 or a bounce off support at $30.53 before placing their trades.


Picked on May 1st @ $31.10
Change since picked +0.27
Stop Loss @ $27.75
 
Interactive Chart Quote News First Call on WSM
 

Play Updates Index

 


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