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PLAY >New Updates Tuesday, June 12, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

LOW - Lowes Companies $72.75 +0.85 (-0.82)

Our home improvement retailer sold off in the early going on Tuesday, but found good support at its 20-dma at $70.75 and bounced higher. LOW closed the day with a slight gain of $0.85. We will be looking for volume to pick up going forward into the latter part of this week and for the MACD to issue a buy signal. A few more up days like today and the MACD should go positive. For now support remains at the 20-dma of $70.75 and resistance has come in at $74.00. Therefore, traders should hold off on getting into LOW until resistance at $74 is conquered on volume of at least 3 million shares. Our stops remain at $68 to limit downside risk.


Picked on June 7th @ $74.00
Change Since Picked -1.25
Stop Loss @ $68.00    
 
Interactive Chart Quote News First Call on LOW
 

New Candidate Updates

BJ - BJ's Wholesale Club $52.36 +1.16 (+1.12)

On Tuesday, BJ managed to close above resistance at $52 on good volume of 600,000 shares. BJ also successfully tested its 5-dma at $51.56 and bounced higher. Add to this the fact that BJ has only weak resistance at $52.75 to deal with and we think you have the recipe for another run higher in BJ. Of course, Tuesday's upgrade of BJ from a "buy" to a "strong buy" by Lehman Brothers doesn't hurt either. In addition to upgrading the stock, Lehman raised its 12-month price target on the retailer to $62 from $55. Traders that may be thinking about getting into BJ should wait until the stock breaches $52.75 on volume that puts the stock on track to do at least 650,000 shares for the day. We are raising our stop to $50.00 to protect our gains thus far.


Picked on May 27th @ $48.31
Change Since Picked +4.05
Stop Loss @ $50.00
 
Interactive Chart Quote News First Call on BJ
 


CEFT - Concord EFS $53.25 +0.48 (+0.91)

CEFT continues to display resilience in the face of adversity. On Tuesday, CEFT marched higher, even as the averages plunged into the red. CEFT reached an intraday high of $54.20 before pulling back a bit and finishing at $53.25. We like the way that volume has been building as the stock moves higher. The MACD is also still portending a continuation of the current up trend, so traders might want to initiate positions on a breach of $54 on volume of at least 3.9 million shares for the day. We are raising our stop to $51.50 to protect against a reversal.


Picked on May 27th @ $50.60
Change Since Picked +2.92
Stop Loss @ $51.50
 
Interactive Chart Quote News First Call on CEFT
 


HRB - H&R Block $63.25 -0.25 (-0.45)

Over the last week, HRB has been acting "toppy." This financial services play has lost ground for the past three sessions in a row. In addition, HRB's MACD is about to roll over, which is generally a sign of an impending downtrend. Lastly, volume has been picking up as the stock moves lower, which is generally a blatant warning sign that sellers have taken over. Given the writing on the wall, we would advise against initiating new positions in HRB until the stock can close above resistance at $64 on volume of at least 600,000 shares. We are keeping our stops at $62.00 for now, but intend to boost them as soon as any sort of breathing room opens up.


Picked on April 18th @ $52.85
Change since picked +9.40
Stop Loss @ $62.00
 
Interactive Chart Quote News First Call on HRB
 


MTG - MGIC Investment $72.36 +0.36 (+0.96)

Our financial services play has been holding up well considering that most banks, brokers and insurance plays have been wilting lately. While MTG is not directly related to the banks and brokers (it's a mortgage insurer), the stock still keys off the same interest rate and consumer confidence data that the banks and brokerage stocks have been. Looking at the chart, MTG has now formed a symmetrical triangle formation and appears to want to break to the upside. The stock has found good support in the neighborhood of $71 and its MACD is still decidedly positive. Traders looking to get into MTG should wait until the stock can close above resistance at $73 on volume of at least 750 million shares for the day.


Picked on May 31st @ $70.37
Change Since Picked +1.03
Stop Loss @ $66.75
 
Interactive Chart Quote News First Call on MTG
 

New Momentum Updates

BEBE - BEBE Stores, Inc. $32.01 +0.39 (+1.21)

BEBE continues its march higher. The good news is that shares of BEBE are ascending on increasing volume. The bad news is that the stock is ripe for a pullback according to its stochastic. While we don't think that any pullback will be sharp or prolonged, we just want to get the warning out incase you see this starting to occur. With the stock only 5% above its prior base, it is by no means overly extended, however, we will caution against chasing it any higher than $32.50, as the risk of a more severe pullback increases after this point. We would rather see the stock move sideways and digest its gains before moving higher. That said traders could look to get into BEBE on a pullback to support at $31 with a subsequent bounce. Our stops remain at $27.00.


Picked On June 10th @ $30.80
Change Since Picked +1.21
Stop Loss @ $ $27.00         
 
Interactive Chart Quote News First Call on BEBE
 


WMI - Waste Management $28.50 +0.45 (+0.06)

WMI did a tremendous about face on Tuesday, as shares plummeted in the early going only to turn on a dime and close higher for the day. WMI dipped as low as $27.38 before reversing course at about midday. We were encouraged by the fact that the big block trades occurred as the stock was heading higher in the afternoon instead of when the stock was selling off in the morning. Tuesday's action in WMI might have been the "cleansing" before the next leg higher for the stock. Any weak shareholders probably pulled the ripcord today, leaving only strong holders that will probably not turn into sellers until much higher prices present themselves. Those who might be thinking about adding WMI to their portfolios could look to do so on a break through resistance at $29 on volume of at least 2.5 million shares for the session.


Picked on June 6th @ $28.51
Change since picked -0.01
Stop Loss @ $26.90
 
Interactive Chart Quote News First Call on WMI
 

Play Updates Index

 


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