Commentary
Sector Watch


Play of the Day
Current Plays
Watch List
New Plays
Play Updates
Drops


Announcements
Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101


Play Results
Split Predictions


Ask the Trader
Trading 101
Bookstore
Glossary
Dow Charts
FAQ


Splits
SEC Filings
Coming Economic Events
BoD Meetings
Earnings


Chat Room
Message Boards


Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

PLAY >New Updates Thursday, May 17, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

APPB - Applebee's International $44.05 +0.32 (+1.16)

Applebee's continues to hug its 10-dma. Better yet, it's starting to advance off it. After moving in tandem with its 10-dma over the past two weeks, APPB broke out yesterday to put some distance between itself and this important level of support. In fact, with today's close, APPB has put $0.82 worth of space between it and its 10-dma at $43.22. APPB has been in a strong up trend since March 1st. Moreover, we think APPB could build on this trend into its split payable scheduled for June 12th. To that end, ABBP posted a new all-time closing high today of $44.05. At this point, APPB has no immediate overhead resistance (though the psychologically-significant $45.00 level could present a minor obstacle). As for support, APPB has the aforementioned 10-dma followed by the 20-dma at $42.46. Traders considering a position in APPB should look for a move through today's intra-day high of $44.35 or a bounce off the 10-dma on volume of 150,000 shares traded by mid-day. One caveat for conservative traders, though, APPB's stochastic is showing it to be overbought, so this trade could carry a little more risk than usual.


Picked on May 15th @ $43.20
Change since picked +0.85
Stop Loss @ $40.50
 
Interactive Chart Quote News First Call on APPB
 


SDS - SunGard Data Systems $61.00 -1.00 (+4.53)

We added this former Watch List stock on Wednesday, and as luck would have it, it lost ground today. Even more discouraging, though, was that SDS lost ground on 2.05 million shares traded, which was more than double the three-month average daily volume of 917,000. Nevertheless, we think SDS could make a strong run into its split-payable date on June 18th. To that end, its MACD remains in a strong up trend while its Stochastic isn't showing its stock to be overbought. At this point, though, SDS may be ripe for some profit taking, particularly after yesterday's $3.05 advance, so don't be surprised if this stock consolidates around $60 for the next session or two. With that said, traders considering a position in SDS should look for a move through Thursday's intra-day high of $64.50 or a bounce off $60 on 400,000 shares traded by midday.


Picked on May 16th @ $62.00
Change since picked -1.00
Stop Loss @ $58.40
 
Interactive Chart Quote News First Call on SDS
 

New Candidate Updates

ASD - American Standard Companies $65.48 +2.22 (+2.21)

American Standard has made a nice recovery over the past two sessions. On Thursday, shares of ASD traded to an all-time high of $66.50 before pulling back to close at $65.48 on volume of 563,000 shares. ASD was able to rebound after testing the 20-dma, so the stock may be able to resume its upward trend. Going forward, ASD has support at the May 11th intra-day high of $63.85 with additional support at $63.30, the 5-dma. Resistance has moved up to Thursday's intra-day high of $66.50 and then possibly $67 or $68. Look for a bounce off of $63.85 or a breakout above $66.50 on midday volume greater than 250,000 shares before starting new plays. We are moving our stops up to $63.50 to lock in a gain.


Picked on May 6th @ $62.50
Change since picked +2.98
Stop Loss @ $63.50
 
Interactive Chart Quote News First Call on ASD
 


AYE - Allegheny Energy, Inc. $53.40 -0.52 (+0.35)

Allegheny Energy traded to an all-time high of $54.10 on Tuesday. However, the stock fell into negative territory as the market pulled back from its intra-day highs. Shares of AYE finished the session at $53.40 on volume of 311,000 shares. Despite Thursday's negative action, ASD remains in a 2-month upward trend and the stock may continue to hit new highs. However, the company held its annual meeting on Thursday and the stock may sell off if we do not get a split announcement in the near future. In the meantime, support has moved up to Thursday's intra-day low of $53.24 with stronger support at $53.05, the May 11th intra-day high. Resistance is Thursday's intra-day high of $54.10 and then $55. Traders may consider entry points on a bounce off of $53.24 or a breakout above $54.10 on volume of at least 250,000 shares by noon. We are bumping our stops up to $53 to protect additional gains.


Picked on April 29th @ $50.60
Change since picked +2.80
Stop Loss @ $53.00
 
Interactive Chart Quote News First Call on AYE
 


BMET - Biomet Inc. $44.19 +0.15 (+3.59)

Biomet, Inc. has posted gains in each of the last five sessions. On Thursday, shares of BMET traded to an all-time high of $44.72 before pulling back to a close of $44.19 on volume of 1.94 million shares. BMET is breaking out after two weeks of consolidation and volume is picking up, so BMET could be ready for a strong rally. From a technical standpoint, support is now at Thursday's intra-day low of $43.55 with additional support at Tuesday's intra-day high of $43.30. Resistance has moved up to Thursday's intra-day high of $44.72 and then $46. Consider starting new plays on a bounce off of $43.55 or a breakout above $44.72 on volume greater than 900,000 shares by noon. We have pushed our stops up to $43 to lock in a gain.


Picked on May 3rd @ $42.16
Change since picked +2.03
Stop Loss @ $43.00
 
Interactive Chart Quote News First Call on BMET
 


HRB - H & R Block Inc. $58.21 +0.24 (+2.16)

H & R Block set another 52-week high today, hitting $58.50 before closing at $58.21. In Tuesday's write up, we expressed concerned that this omnipresent tax preparer was running out of steam. Fortunately, that wasn't that case. In fact, HRB added $0.24 to its share value today after adding $1.89 on Wednesday. Obviously, HRB can't keep hitting new 52-week highs in perpetuity. What's more, it's not every week that the market gets an interest rate cut gift from the Federal Reserve. So, at this point, we'd be conservative about entering new positions and liberal about tightening stops (we've tightened our stop to $57.00). Technically, though, HRB still looks strong; its MACD is once again forming an up trend and its On-Balance Volume is trending higher. At this point, HRB has support at its 10-dma at $55.73 followed by the 40-dma at $52.58. As for resistance, we are looking at the July 1999 highs of $59.00. 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 $59.00 or a bounce off the 10-dma before placing their trades.


Picked on April 18th @ $52.85
Change since picked +5.36
Stop Loss @ $57.00
 
Interactive Chart Quote News First Call on HRB
 


ITG - Investment Technology Group $54.60 +0.08 (+3.69)

Like the broader market, ITG eked out a small gain today, adding $0.08 to its share price. What's more, it made this gain on 281,100 shares traded, 53,000 more than the three-month average daily volume of 228,000. ITG is another one of our Current Play stocks that looks like it might take a breather after this week's strong run. In fact, ITG is now bumping up against resistance at $55.00, so it's possible that it might want to consolidate at this level before attempting another leg up. At this point, ITG has support provided by its 10-dma at $51.95 followed by additional support at its last consolidation base at $50. Traders considering a position in ITG should look for a move through resistance at $55.00 or a bounce off today's intra-day low of $54.09 on volume of 100,000 shares traded by noon EDT.


Picked on May 16th @ $54.52
Change since picked +0.08
Stop Loss @ $51.40
 
Interactive Chart Quote News First Call on ITG
 


OMG - OM Group, Inc. $62.80 +0.40 (+4.84)

OM Group continues to hit new highs. On Thursday, shares of OMG traded to an all-time high of $63.98 before running into some resistance. The stock ended the day at $62.80 on heavy volume of 202,000 shares. OMG has made five consecutive higher highs on top of higher lows and volume has been improving. However, the stock may be due for a round of profit taking after nine days of gains. Until then, OMG has support at Thursday's intra-day low of $62.60 with stronger support at the $62 mark. Resistance has come in at Thursday's intra-day high of $63.98 and then $65. A bounce off of $62.60 or a breakout above $63.98 on midday volume greater than 60,000 shares may be possible entry points. We have bumped our stops up to $62 to protect recent gains.


Picked on May 13th @ $57.96
Change since picked +4.84
Stop Loss @ $62.00
 
Interactive Chart Quote News First Call on OMG
 


STU - The Student Loan Corporation $68.24 -1.62 (+0.59)

Someone wanted to get out of Student Loan Corp, on Thursday afternoon. The stock was trading above the $70 mark for most of the session, hitting an intra-day high of $70.40 in the morning. Then, the STU started to slide just after 2 PM EDT when it slipped below $70. Shares of STU closed the day at $68.24 on volume of 22,500 shares with almost half of the volume coming in the last 90 minutes. The company held its Annual Meeting on Wednesday, but we did not get a split announcement. For now, support is the 10-dma at $68.15 with additional support at $68.00, Thursday's intra-day low. Resistance is now up to Thursday's intra-day high of $70.40 and then $71 or $72. Look for entry points on a bounce off of $68.15 or a move above $70.40 on volume of at least 15,000 shares by noon. Our stops are now up to $68 to limit potential losses.


Picked on May 10th @ $68.20
Change since picked +0.04
Stop Loss @ $68.00
 
Interactive Chart Quote News First Call on STU
 


TTC - Toro Company $46.20 -1.60 (+0.21)

Curiously, TTC has seen a marked increase in volatility over the past two days that resulted in very little progress. Yesterday, TTC shot to a new high of $48.00 after moving above the resistance provided by the old 52-week high of $47.63. However, momentum traders appeared to be unimpressed and failed to extend the breakout today. Consequently, profit takers jumped in and knocked the stock back down into its consolidation range and did this with solid volume of 133,300 shares, which was more than 40,000 shares than the average daily volume. We have decided to raise our trailing stop to $44.88, just in case the selling continues and the stock violates the major support offered by the 50-DMA of $44.97. New positions placed near current levels might work out as long as TTC holds the first support level of $45.88. Momentum traders might want to wait for TTC to establish a new high above $48.00, accompanied by first hour trading volume exceeding 30,000 shares, before going long. The RSI did not signal an overbought condition, despite yesterday's solid rally. Therefore, this indicator suggests that TTC does have room to rally again.


Picked April 29th @ $46.25
Change since picked -0.05
Stop Loss @ $44.88
 
Interactive Chart Quote News First Call on TTC
 

New Momentum Updates

GTK - GTECH Holdings Corp $36.40 +0.50 (+1.04)

GTK fell just short of establishing a new high above $36.90 today after enjoying only a modest advance during yesterday's monster rally on the NYSE. GTK has been finding really good support along its rising 10-DMA. Since this moving average closed today at $35.31, we have decided to raise our trailing stop to $35.00. A couple of technical factors continue to offer bulls encouraging signs that GTK may have some more room to rally. The MACD is still positive and moving higher after threatening to issue a sell signal. The OBV is very strong, indicating that there is more buying on up days than there is selling on down days. That said, the RSI is still a concern because it is indicating an extremely overbought condition. Nevertheless, the beauty of using trailing stops is that we can enjoy the ride as far as it will take us until the inevitable pullback. Traders might profit from a breakout if GTK can trade through $37.00 tomorrow and accomplish this feat with first hour trading volume exceeding 100,000 shares.


Picked on April 22nd @ $29.79
Change since picked +6.61
Stop Loss $35.00
 
Interactive Chart Quote News First Call on GTK
 


LEA - Lear Corp. $37.30 +0.74 (+1.65)

In Tuesday's write up, we said that LEA was consolidating near its base at $35.00. We also said that we doubted that LEA would see much price action Thanks to the Fed, we were wrong on both accounts as buyers came into the market to take LEA over $37.00. What's more, there appears to be some enthusiasm behind LEA's advance, as it was accompanied by average volume of 500,000 shares, which is 100,000 greater than the three-month average daily volume of 400,000. More impressively, LEA's mini-rally has put it above its 10-dma at $36.54, which had been resistance. The next level of resistance will be the May 4th high of $38.50, which LEA challenged today. As for support, LEA has its 20-dma at $36.22 followed by the aforementioned consolidation base of 35.00. 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 $38.25 or a bounce off the 20-dma before placing their trades. To prevent excess losses, we've moved our stop loss to $35.00


Picked on April 24th @ $36.20
Change since picked +1.10
Stop Loss @ $35.00
 
Interactive Chart Quote News First Call on LEA
 

Play Updates Index

 


Copyright 2001 SplitTrader.com

Do not duplicate or redistribute in any form.
Privacy Statement   Disclaimer   Terms Of Service