Sector Watch

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

Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101

Play Results
Split Predictions

Ask the Trader
Trading 101
Dow Charts

SEC Filings
Coming Economic Events
BoD Meetings

Chat Room
Message Boards

Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

PLAY >New Updates Tuesday, May 29, 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 $43.26 -0.46

APPB lost ground on Tuesday, but found support at the bottom of its current base near $42.40. The good news was that the volume on the sell off was even lighter than Friday's light volume of 325,000 shares. Today's volume came in at only 230,000 shares, which tells us that APPB may be content to trade around $44 for a while before picking up steam. Looking at the chart, resistance has come in around $44.70 and then higher at $45. APPB's MACD still is decidedly negative so traders should wait until APPB confirms its strength before initiating new positions. That being said, traders should wait until APPB takes out its old high of $45.44 on volume of at least 500,000 shares before taking the plunge into the "neighborhood restaurant."

Picked on May 15th @ $43.20
Change since picked +0.06
Stop Loss @ $40.50
Interactive Chart Quote News First Call on APPB

PKI - PerkinElmer $69.70 -2.69

Traders were particularly unkind to technology stocks today and PKI could not avoid the profit taking. The pullback occurred despite the fact that PKI issued some good news today. The company announced an expanded joint venture with MDS Sciex (NYSE:MDZ) to develop revolutionary Time-of-Flight based mass spectrometry systems. These advancements should help PKI to continue to lead in the development of high technology tools that will advance the race for the creation of new therapeutic drugs. PKI is scheduled to pay out its 2:1 split on Friday. If the market can reverse course and start to head higher later this week, PKI could enjoy a decent rally heading into its split date. Technically speaking, we were a little disappointed that PKI dropped below the $71.00 support today. On the plus side, however, today's drop occurred with very light volume of 292,000 shares. Therefore, there was very little conviction from the sellers today. Those looking to enter a new position in PKI might want to wait for the stock to trade back above its 10-DMA, which closed just slightly below $71.00 today. One might want to watch the MACD very closely. This indicator could roll over and issue a sell signal tomorrow if PKI slips in the early going. On the other side of the coin, one encouraging technical indicator is the RSI, which had been indicating an overbought condition but has now pulled back to support. This implies that there is plenty of rally room for the stock before it would be considered overbought again.

Picked on May 17th @ $70.12
Change since picked -0.42
Stop Loss @ $67.00
Interactive Chart Quote News First Call on PKI

New Candidate Updates

ASD - American Standard Companies, Inc. $66.00 +0.34

American Standard Companies, Inc. hit an all-time high of $67 on Tuesday. Unfortunately, the stock could not hold onto all its gains as the rest of the market sold off. Shares of ASD ended the session at $66 on volume of 480,000 shares. The stock has put in four consecutive higher highs on average volume so ASD may continue to trend higher at a sustainable pace. For now, ASD has support at Monday's intra-day low of $65.34 with stronger support at the 10-dma, now up to $64.93. Resistance has come in at Monday's intra-day high of $67 and then possibly $68 or $69. Traders may consider starting new plays on a bounce off of $65.34 or a breakout above $67 on volume of at least 250,000 shares by noon. We are leaving our stops at $63.50 to lock gains.

Picked on May 6th @ $62.50
Change since picked +3.50
Stop Loss @ $63.50
Interactive Chart Quote News First Call on ASD

BJ - BJ's Wholesale Club $48.56 +0.25

We enjoyed a decent start to our new play in this major warehouse retailer. Although the advance was only modest, BJ was able to establish another new high today. In addition, the stock only closed $0.11 below the new high. Therefore, there is very little overhead resistance. A better day tomorrow for the overall market could encourage momentum traders to drive the shares of BJ into uncharted territory. A new high, accompanied by midday volume exceeding 375,000 shares, might prove to be a good opportunity to go long. One should probably be cautious about entering a new position if BJ gaps up $1.50 or more on the opening because a gap up might result in a pullback in the early going. Several of BJ's technical indicators are quite strong and point towards continued gains for the stock. The MACD is breaking out and the Money Flow is outstanding. OBV is also getting stronger and the only real concern is the fact that is approaching a level that would suggest an overbought condition.

Picked on May 27th @ $48.31
Change since picked +0.25
Stop Loss @ $45.10
Interactive Chart Quote News First Call on BJ

BKH - Black Hills Corporation $56.96 -0.31

Most all the sector indices closed lower today, including the utility stocks. The Dow Jones Utility Index (UTIL) slipped 2.25 to 387.82. The mild decline in utilities knocked BKH back a bit. Our president is in California today to address the current energy crisis but it is unlikely that he will announce any major policy change. This is good news for BKH, because it is unlikely that the Federal government will attempt to initiate price controls over skyrocketing electricity costs. BKH is having a record year for profits because of the surging demand for electricity. BKH tested the important support provided by the 10-DMA of $56.41 today. New positions should probably be avoided if this support fails tomorrow. That said, a rally that drives the stock to take out the resistance provided by the 52-week high of $58.50 might encourage new investors to drive the stock even higher, especially if a move into new high ground is accompanied by volume over 175,000 shares.

Picked on May 20th @ $55.94
Change since picked +1.02
Stop Loss @ $52.25
Interactive Chart Quote News First Call on BKH

CEFT - Concord EFS Inc. $50.70 +0.10

Concord EFS, Inc. is breaking out after testing the 5-dma twice last week. On Tuesday, shares of CEFT traded to an all-time high of $51.40 before pulling back to a close of $50.70 on volume of 3.24 million shares. The stock has regained its upward momentum on increasing volume, so CEFT could be able to ride the 5-dma to new highs. However, the stock is up 14% over the last two weeks so we may get a round profit taking before CEFT moves higher. Going forward, support has moved up to Tuesday's intra-day low of $50.28 with additional support at $49.82, the 5-dma. Resistance is now at Tuesday's intra-day high of $51.40 and then $53. A bounce off of $50.28 or a breakout above $51.40 on midday volume of at least 2 million shares may be possible entry points. Our stops are holding steady at $46.

Picked on May 27th @ $50.60
Change since picked +0.10
Stop Loss @ $46.00
Interactive Chart Quote News First Call on CEFT

HRB - H&R Block $60.15 +0.43

The weakness seen in tech stocks on Tuesday certainly had no effect on HRB. HRB advanced $0.43 to $60.15 and better yet, did so on increased volume. HRB traded almost 900,000 shares on Tuesday, breaking its string of three days in a row of decelerating volume. Looking back, HRB hasn't traded over 800,000 shares since 5/4/01 (the day it started its latest leg higher). We are obviously encouraged by the increased interest in HRB and look for the stock to challenge its old closing high of $61.71 soon. In addition, today's advance in HRB avoided a sell signal out of the MACD and turned around the stock's plummeting OBV. Traders looking to play HRB, could aim to buy the stock on a break above $61.71 on volume of at least 650,000 shares. Our stops remain at $57.50 to protect against a reversal in momentum.

Picked on April 18th @ $52.85
Change since picked +7.30
Stop Loss @ $57.50
Interactive Chart Quote News First Call on HRB

KRI - Knight Ridder, Inc. $55.75 +0.12

Knight Ridder, Inc. has been struggling after hitting an all-time high last week. On Tuesday, shares of KRI hit an intra-day high of $56.27 before pulling back to a close of $55.75 on light volume of 157,000 shares. The stock has fallen back into its old $54-$56 trading range and KRI is building a downward trend on below-average volume. However, the stock has been able to hold the 20-dma so KRI may have found a short-term bottom. In the meantime, support is Monday's intra-day low of $55.45 with stronger support at $54.56, the May 16th intra-day low. Resistance has moved down to the 100-dma at $56.31 and then Friday's intra-day high of $56.72. Look for entry points on a bounce off of $55.45 or a move above $56.31 on volume greater than 250,000 shares by noon. We are keeping our stops at $54 as downside protection.

Picked on May 20th @ $56.01
Change since picked -0.26
Stop Loss @ $54.00
Interactive Chart Quote News First Call on KRI

New Momentum Updates

BUCA - Buca, Inc. $25.00 +0.21

BUCA continues to trade in a tight range around the $25 level. Although, with today's consumer confidence number coming in on the high side, restaurant stocks might continue to get a boost higher. This is because as consumers feel more confident about their economic situations, they tend to indulge more in life's little extras; like dining out. Turning to BUCA's chart, we can see that the stock has found good support near the 05/11/01 peak of $24.20. Traders interested in starting new positions in BUCA should look to do so if BUCA can close above Thursday's closing high of $25.15 on volume of at least 350-400,000 shares traded. We are keeping our stops at $21.30 in case BUCA rolls over. We also note that volume has been on the low side for the past two trading sessions. BUCA's three-month average daily volume is 330,000 shares and today it did only 150,000. We need volume to pick up above 500,000 in order for resistance at $25.25 to be taken out. Traders wanting to enter BUCA on a momentum move could look to do so on a close above $25.25 accompanied by volume of at least 500,000 shares.

Picked on May 24th @ $25.15
Change Since Picked -0.15
Stop Loss @ $21.30      
Interactive Chart Quote News First Call on BUCA

GTK - GTECH Holdings Corp $37.11 -0.29

GTECH started the week in solid fashion and even threatened to drive through resistance provided by the all time high of $38.18. Unfortunately, GTK could not sustain the early momentum and a relatively weak overall market ultimately dragged down the stock. The good news is that GTK did find support at its 10-dma which closed today at $36.88. Traders should probably avoid entering new positions in this stock if this support at the 10-dma is violated tomorrow. That said, a rally above $38.18, accompanied by midday volume exceeding 150,000 shares, might entice new money to flow into the stock. One negative is the fact that the MACD did cross over and issue a sell signal today. If the overall market is sluggish again tomorrow, we would not be surprised if our trailing stop of $36.40 is executed.

Picked on April 20th @ $29.79
Change since picked +7.32
Stop Loss $36.40
Interactive Chart Quote News First Call on GTK

SCH - The Charles Schwab Corp $19.76 -1.04

Schwab's stock tends to trade with the broader market. Positive market trends, accompanied by good volume usually result in a short-term surge in commissions. Obviously, the reverse is true as well, and with the S&P 500 (SPX.X) slipping 9.95 points to 1267.95 on Tuesday it was not surprising that SCH dropped a little today. We are a little concerned that SCH dropped below its 10-DMA of $20.31. This moving average had provided excellent support for all of last week. SCH will probably have to climb back above its 10-DMA tomorrow before traders jump back on board in an attempt to drive the stock to the $21.59 resistance. The MACD is still negative but a rally tomorrow could cause this technical indicator to issue a buy signal. It was a good sign that today's volume was relatively light. Consequently, Money Flow continues to be positive and this fact should help bulls to remain positive about the future price direction of SCH.

Picked on May 2nd @ $21.18
Change since picked -1.42
Stop Loss @ $18.50
Interactive Chart Quote News First Call on SCH

Play Updates Index


Copyright 2001

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