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PLAY >New Updates Sunday, June 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

LOW - Lowes Companies $72.38 (-1.19)

Lowes continued to slide lower on Friday, as the stock lost $0.55 to $72.38. The stock is right on the edge of starting to worry us. It is sitting right above its 20-dma of $71.61 and if it breaks down through this level next week, it will more than likely test support at $70. In addition, volume has been accelerating as the stock has been moving lower, another sign that sellers may be gaining the upper hand. Traders who might be interested in getting into LOW should wait until the stock can close above resistance of $74 on volume of at least 3.5 million shares before committing capital to the home improvement retailer.


Picked on June 7th @ $74.00
Change Since Picked -1.62
Stop Loss @ $68.00     	
 
Interactive Chart Quote News First Call on LOW
 

New Candidate Updates

BJ - BJ's Wholesale Club $52.80 (+1.56)

BJ gapped up at the open on Friday and then proceeded to sell off for the rest of the session. While the stock did breach $53 early on, it could not hold at these levels. That is precisely why it is important to wait until the end of the day to see if a stock is going to close above a key level. For instance, if BJ was looking strong and holding above $35.20 with 15 minutes to go in the session, it would have been a buy. That being said, Friday's weakness was halted at support at $52.75, so we are still bullish on this stock going into next week. Traders looking to get into BJ should again wait for a decisive close above $53 on volume of at least 750,000 shares before pulling the trigger. We have decided to move our stop up to $51.50 (just below the 10-dma of $51.60) to protect against a reversal.


Picked on May 27th @ $48.31
Change Since Picked +4.49
Stop Loss @ $51.50
 
Interactive Chart Quote News First Call on BJ
 


EPIQ - EPIQ Systems $36.00 (+3.70)

EPIQ found good support at its 5-dma at $34.50 on Friday. In fact, it retraced to this level, only to bounce higher to end Friday's session up $0.90. While the stock did not breach resistance at $36.94, it did go a long way towards convincing us that it still has some pop left in it. Traders should still look towards a break above $36.94 on volume of at least 60,000 shares by noon as the next best entry point into our software play. In addition, should we get further signs of economic weakness next week, watch how EPIQ reacts to the news. Shares of EPIQ stand to benefit from a weaker economy, so we need to see EPIQ advance on bad economic news. If we don't see this, the warning flag comes out. Our stop remains at $31.00 to limit downside risk.


Picked On June 14th @ $35.10
Change Since Picked +0.90
Stop Loss @ $31.00
 
Interactive Chart Quote News First Call on EPIQ
 


ESI - ITT Education $42.80 (-0.64)

ESI ended Friday's session flat, which is a lot better than the broader market. By closing flat, ESI still remains under both its 5 and 10-dmas. The good news is that plenty of buying support came in at the $42.80 level, which keeps ESI well within its current flag pattern. However, we would of course like to see ESI move closer to the top of its flag to give us some breathing room. Going into next week we do not want to see ESI loose support at $42, nor do we want to see volume pick up as the stock stagnates. We will look for a break above resistance at $44 on good volume of at least 250,000 shares for the day as the next best entry scenario.


Picked On June 12th @ $43.70
Change Since Picked -0.90
Stop Loss @ $40.00
 
Interactive Chart Quote News First Call on ESI
 


MTG - MGIC Investment $74.38 (+2.98)

It was all systems go for our mortgage insurance play on Friday. The stock closed right at its high of the day, which also happens to be a new high for the stock. MTG gained $2.17 on great volume of 870,000 shares. This volume figure becomes even more impressive when you consider that average trade for the stock is 740,000 shares and that Friday's have been typically very low volume days on the NYSE. Friday's move above resistance at $74 completes a breakout from an ascending triangle. Our price target now becomes $78 according to the height of the triangle. Traders who might be interested in getting into MTG could look to do so on a strong move above Friday's close of $74.38 on volume of at least 300,000 shares by midday. We are moving our stop up to $71.90 (just below support at $72) to lock in gains.


Picked on May 31st @ $70.37
Change Since Picked +4.01
Stop Loss @ $66.75
 
Interactive Chart Quote News First Call on MTG
 

New Momentum Updates

BEBE - BEBE Stores, Inc. $30.43 (-0.37)

Shares of BEBE got a boost on Friday, en in the face of general market weakness. We are encouraged by the fact that the stock bounced off Thursday's low of $29.85 and ended the session higher by $0.33. This move might have prevented the MACD from issuing a sell signal in addition to creating a near term floor for the stock. However, before we get too excited, volume on Friday was a paltry 85,000 shares, not enough to convince us that buyers are still active. That said traders could look for a break above the previous closing high of $32.01, on volume of at least 100,000 shares by midday as the next best entry point.


Picked On June 10th @ $30.80
Change Since Picked -0.37
Stop Loss @ $ $27.00 
 
Interactive Chart Quote News First Call on BEBE
 


WMI - Waste Management $29.49 (+1.05)

WMI pulled back a bit on Friday, but did so on decreasing volume. Volume slowed to 4.3 million shares from Thursday's 5 million shares. WMI started the day on the wrong foot, but then gained some traction at 10:30 after which time it proceeded to shoot up towards the $30-level. However, WMI ran into resistance at $29.98 and sold off for the rest of the session. The $30-level look like it might pose a near term problem for the stock, so more conservative traders may wish for a break above this resistance on strong volume of at least 3.5 million shares for the day. As a side note, WMI had their investor meeting in Houston, Texas on Thursday and outlined ways to increase shareholder value. In addition, they outlined how they could increase revenues and gain market share. The Street must have been at least somewhat pleased by what CEO Maury Meyers had to say, since the stock has been holding up well since the meeting.


Picked on June 6th @ $28.51
Change since picked +0.98
Stop Loss @ $26.90
 
Interactive Chart Quote News First Call on WMI
 

Play Updates Index

 


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