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PLAY >New Updates Thursday, May 24, 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 $43.36 +0.61 (-0.74)

Applebee's came back from the dead on Thursday, having rallied back over $43.00 to $43.36. It was looking as if APPB was heading for a test of support around $41 before buyers came back in to boost the stock today. Turning to the chart, we see that the 5-dma at $43.77 has now turned into resistance after providing support since 5/04/01. If APPB can conquer the 5-dma, it has stiffer resistance to face above at $45. The good news about yesterday's sell off was that it relieved an overbought condition on APPB's stochastic. The stock now has room to run before issuing an overbought condition again. Traders looking to add APPB to their portfolio could watch for a move above resistance of $45 on volume of at least 400,000 shares. We are keeping our stops at $40.50 to guard against further downside moves.

Picked on May 15th @ $43.20
Change since picked +0.16
Stop Loss @ $40.50
Interactive Chart Quote News First Call on APPB

PKI - PerkinElmer $71.80 -0.07 (-1.02)

PKI could not shake off the market's correction yesterday. It now appears as if the stock has lost some of the momentum that was initially generated from its recent breakout. The good news is that Wednesday's decline occurred on light volume of just over 400,000 shares followed by light volume today of only 210,000 shares. PKI usually enjoys average daily volume exceeding 500,000 shares. This fact that we have seen lower volume on down days is a good sign that there is very little conviction from sellers. Money Flow did slip a bit but is still relatively strong. The pullback did relieve the overbought pressure that was signaled by the RSI. IF PKI declines tomorrow, look for the stock to find major support at $67.84, which is the top of the old base. If PKI bounces off the initial support offered by the 10-DMA of $69.44, it may provide a good entry opportunity. The MACD is still positive, which is a good sign that PKI may be able to muster up another run higher towards resistance of $76.25.

Picked on May 17th @ $70.12
Change since picked +1.68
Stop Loss @ $67.00
Interactive Chart Quote News First Call on PKI

SDS - SunGard Data Systems $59.71 -1.79 (-1.20)

SDS had a rough day on Thursday. Shares took a bit of a dump right after the bell. Otherwise the stock would have closed at $60.00. Whether or not this is was just a money manager adjusting his or her portfolio at the last minute, we will never know. However, we will put up the caution flag for tomorrow's open. We will watch for support at $59 to hold on any subsequent downdrafts. With today's loss of $1.79, SDS's MACD is set to roll negative tomorrow. Given the above scenario, we feel traders should wait to see if support at $59 holds before pulling the trigger. This is also because of the fact that our stop lies just below at $58.40. Any bounces off $59 should ideally come on daily volume of at least 900,000 shares.

Picked on May 16th @ $62.00
Change since picked -2.29
Stop Loss @ $58.40
Interactive Chart Quote News First Call on SDS

New Candidate Updates

ASD - American Standard Companies, Inc. $65.60 +0.20 (+0.15)

American Standard Companies, Inc. is gaining momentum following its presentation at Wednesday's Merrill Lynch Global Industries Conference in London. On Thursday, shares of ASD closed at its intra-day high of $65.60 on volume of 504,000 shares. The stock has put in three consecutive higher lows on increasing volume so ASD may be able to challenge its all-time high in the near future. From a technical standpoint, support has moved up to Thursday's intra-day low of $65.10 with stronger support at $64.34, the 10-dma. Resistance is now at Friday's intra-day high of $66.50 and then possibly $67 or $68. Traders may consider starting new plays on a bounce off of $65.10 or a move above $66.50 on volume of at least 250,000 shares by noon. We are keeping our stops at $63.50 to lock in gains.

Picked on May 6th @ $62.50
Change since picked +3.10
Stop Loss @ $63.50
Interactive Chart Quote News First Call on ASD

AYE - Allegheny Energy, Inc. $54.70 -0.09 (+0.90)

Allegheny Energy, Inc. has traded to new highs in eight of the last 11 sessions. On Tuesday, shares of AYE hit an all-time high of $55.09 before pulling back to a close of $54.70 on volume of 351,000 shares. The stock is maintaining a steady upward trend with regular tests of the 10-dma. On the negative side, daily volume has been light and the MACD may be a bit stretched. Going forward, support is holding at the 5-dma, now up to $54.46, with additional support at $53.93, the 10-dma. Resistance is Thursday's intra-day high of $55.09 and then $56. A bounce off of $54.46 or a breakout above $55.09 on midday volume greater than 225,000 shares may be possible entry points. We are leaving our stops at $53 as protection.

Picked on April 29th @ $50.60
Change since picked +4.10
Stop Loss @ $53.00
Interactive Chart Quote News First Call on AYE

BKH - Black Hills Corporation $58.05 +0.60 (+2.11)

BKH is right back in striking range of establishing a new high after pulling back modestly over the previous two trading sessions. Utility stocks, especially those based in the West, are benefiting from the California energy crisis. Additionally, BKH offers investors some real value for their investment dollars since the stock trades at a relatively low P/E of 17.38. The next trading opportunity could present itself tomorrow if BKH can establish a new high above $58.50, accompanied by midday volume exceeding 90,000 shares. In the event of a pullback, today's low of $57.00 should provide support. The MACD is positive and is suggesting that BKH can continue its advance. The RSI is suggesting an overbought condition. However, BKH has traded higher for extended periods in the past when the RSI was in overbought territory.

Picked on May 20th @ $55.94
Change since picked +2.11
Stop Loss @ $52.25
Interactive Chart Quote News First Call on BKH

HRB - H&R Block $59.90 -0.05 (+1.44)

HRB continued to churn around the $60 level on Thursday. The fact that it has not dipped below Monday's low of $58.40 is good news. It means that buyers are not worried about the last few days' retracement off the high of $61.75. We would have liked to see a little less volume as HRB slipped lower. However, due to the fact that the intraday swings were very narrow, we won't worry about the volume just yet. Turning to the chart, we see that support has first established itself at $59.35, and then lower at $58.00. Resistance shows up at $61.75. We will look for HRB to settle above its 5-dma going into the holiday weekend. Traders may want to initiate new positions if HRB can breach resistance at $61.75 on volume of at least 600,000 shares.

Picked on April 18th @ $52.85
Change since picked +6.05
Stop Loss @ $57.50
Interactive Chart Quote News First Call on HRB

KRI - Knight Ridder, Inc. $56.02 -0.39 (+0.01)

Knight Ridder, Inc. has been under pressure over the past two days. On Wednesday, Goldman Sachs cut its outlook for fiscal 2001 profits for KRI to $3.32 per share from $3.40 and reiterated its "underperform" rating on the stock. Following the news, shares of KRI traded to an intra-day low of $55.43 before closing at $56.02 on light volume of 235,000 shares. On Thursday, KRI dipped to an intra-day low of $55.43 on volume of 269,000 shares. The stock was able to close above the $56 mark but KRI may fall back into its old $54-$56 trading if the volume continues to decline. For now, support is the 10-dma at $55.86 with stronger support at $55.27, the 20-dma. Resistance has moved down to the 5-dma at $56.58 and then Wednesday's intra-day high of $57.60. Look for entry points on a bounce off of $55.86 or a move above $56.58 on volume of at least 250,000 shares by noon. Our stops remain at $54.

Picked on May 20th @ $56.01
Change since picked +0.01
Stop Loss @ $54.00
Interactive Chart Quote News First Call on KRI

New Momentum Updates

GTK - GTECH Holdings Corp $37.70 +0.40 (+1.09)

Momentum investors had every excuse in the world to take profits out of the nice run in the shares of this major lottery systems supplier. Yesterday's market declines were characterized by profit taking in many of the recently strong stocks. The fact that GTK declined modestly and finished today only $0.48 below its 52-week high highlights the stock's impressive relative strength. That said traders should probably be wary of a more substantial correction if GTK drops below the support provided by the 10-DMA, which closed today at $36.50. New trades might be considered if GTK crosses over $38.18 with first hour trading volume approaching 100,000 shares. Looking at GTK's technical indicators, we note that the MACD has flattened. This could result in a sell signal if the MACD weakens further. The RSI continues to reflect a severely overbought condition that doesn't seem to bother traders. Momentum is a powerful thing and we are happy to stay with GTK as far as the ride will take us. If a new high is established tomorrow, do not be surprised if there is some profit taking late in the day ahead of the three day weekend.

Picked on April 20th @ $29.79
Change since picked +7.91
Stop Loss $35.50
Interactive Chart Quote News First Call on GTK

SCH - The Charles Schwab Corp $20.90 +0.22 (+1.45)

Schwab's breakout earlier this week appeared to warrant a quick advance to resistance at $23.16. However, there was a hiccup in this move, as the market corrected yesterday. The good news is that the decline on Wednesday was accompanied by volume that was 2.5 million shares less than the volume that accompanied today's advance. This means that there is far more interest in buying SCH on up days than selling the stock on down days. If this pattern continues, the OBV and Money Flow should both improve and these technical indicators could ultimately confirm that SCH is on its way to establishing a sustainable rally. A positive day tomorrow would likely cause the MACD to issue a buy signal, which would lend more credence to the extended rally theory. Momentum traders should be looking to buy SCH tomorrow if the stock can trade above the $21.59 resistance accompanied by midday volume exceeding 300,000 shares.

Picked on May 2nd @ $21.18
Change since picked -0.28
Stop Loss @ $18.50
Interactive Chart Quote News First Call on SCH

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