Trade Updates - 12/23/08 -
BULLISH Trade Updates
symbol: BAP -(Credicorp Ltd. )-
closing price: 47.29, today's change: -0.21, stop loss: 43.90
Picked on December 20 at $46.69
Change since picked: + 0.60
Earnings Date 02/05/09 (unconfirmed)
Average Daily Volume: 379 thousand
BAP actually hit a new relative high when it temporarily broke out past resistance at the $48.00 level. The rally didn't stick but shares still out performed the U.S. markets. If you don't feel like "chasing" BAP here then consider waiting for a dip toward the $46.00 level as a bullish entry point.
There is potential resistance at $50.00 but we're aiming for the $52.50 mark, underneath technical resistance at its descending 100-dma. Technical trades will be interested to note that the Point & Figure chart is bullish with a $66 target.
symbol: CMI -( Cummins Inc. )-
closing price: 24.84, today's change: -0.01, stop loss: 24.15
Picked on December 20 at $26.51
Change since picked: - 1.67
Earnings Date 01/30/09 (unconfirmed)
Average Daily Volume: 4.1 million
The early morning rally attempt in CMI failed and shares spent the latter half of the day bouncing around the $24.50-25.00 zone. I am growing concerned with CMI's inability to breakout past its 50-dma. Some of the momentum indicators are starting to roll over into more bearish postures. I don't see how we can tighten our stop loss any further. More conservative traders may want to exit now and cut your losses. If we don't see a real bounce soon I'll pull the plug.
We have two targets. Take some money off the table at our first target of $29.90. Our second target is $32.45. Readers may want to consider a higher target. The 38.2% Fibonacci retracement of its sell-off is close to $40.00. The Point & Figure chart is also bullish with a $39.00 target.
symbol: LMT -( Lockheed Martin )-
closing price: 78.28, today's change: -0.64, stop loss: 77.49
Picked on December 20 at $80.01
Change since picked: - 1.73
Earnings Date 01/22/09 (unconfirmed)
Average Daily Volume: 3.0 million
LMT spent the day churning sideways and hugging its simple 50-dma. I am growing more cautious on stocks and LMT included. Momentum indicators are waning. If LMT doesn't bounce tomorrow we'll probably exit early to cut our losses. There happened to be some good news for LMT out after the closing bell. LMT announced it had won a $774 million contract from the U.S. Army for hardware and services related to the Patriot Missile.
We have listed two targets. Our first target is $84.85. Our second target is $88.00. The Point & Figure chart is bullish with a $90.00 target but it also shows potential resistance near $83-84.
(Bookkeeping note: options suggested were the January $80 or $85 calls)
symbol: PFG -( Principal Fincl. Group )-
closing price: 18.95, today's change: -0.30, stop loss: 17.99
Picked on December 20 at $20.31
Change since picked: - 1.36
Earnings Date 02/09/09 (unconfirmed)
Average Daily Volume: 4.9 million
PFG continues to drift lower. The stock looks headed for the $18.00 level. I don't see any changes from my prior comments. Look for a new bounce over $20.00 or a new bounce from the $18.00 level as a bullish entry point to buy PFG.
Our target is $24.75. More aggressive traders may want to aim higher. The Point & Figure chart is bullish with a $31.00 target but it also shows some resistance in the $24-25 zone.
symbol: PJC -( Piper Jaffray )-
closing price: 35.81, today's change: -0.45, stop loss: 33.95
Picked on December 20 at $36.93
Change since picked: - 1.12
Earnings Date 01/21/09 (unconfirmed)
Average Daily Volume: thousand
PJC has pulled back to retest what should be support at its simple 200-dma. This is another entry point to buy the stock although the way the market is acting readers may want to wait for a bounce first.
The Point & Figure chart is bullish with a $53 target. We're not quite that optimistic. We're using two targets. Out first target is $39.95. Our second target is $43.50.
BEARISH Play Updates
*We currently do not have any bearish play updates*