New Split Drops
No New Split Drops
New Candidate Drops
| AXF - AXA Financial Inc. $57.06 (1.19) (+1.19) |
AXA Financial recently went through a merger internally, which involved a stock swap between AXF and AXA Merger Corp. The end result was that the stock now trades on under the AXA symbol with a different price structure. Thus, this play ended on Wednesday. The final trading price was $57.06.
| BAX - Baxter International $81.50 -4.88 (-6.81) |
Falling sharply through resistance on Wednesday, Baxter hit our firm stop at $85.00. Since the Medical Supplies industry has already had an extended run, it makes trading sense to keep stops below near-term support levels. Although there always remains the possibility for a stock to reverse just under support, it's a much better trading strategy to take a small loss rather than risking a devastating loss. We'll keep you posted on future plays.
| D - Dominion Resources $56.00 -4.44 (-11.00) |
Dominion Resources sold off on Wednesday after Greenspan & Co. cut the Fed Funds rate by 50 basis points. Shares of Dominion fell to an intra-day low of $60.25, hitting our stops at $64 along the way. Therefore, we are dropping the stock from our play list.
| JNJ - Johnson & Johnson $96.63 -2.13 (-8.44) |
Johnson & Johnson was hit with profit taking on Wednesday, as The Federal Reserve attempts to fight off a recession. The stock traded down to an intra-day low of $97.88 on heavy volume of 5.66 million shares. We were stopped out at $101, so we are dropping this play tonight.
| MRK - Merck & Company $85.00 -4.13 (-8.63) |
Upon the Fed announcement that it was cutting short-term interest rates by 50 basis points, Merck immediately sold off and quickly hit our stop loss at $91.00. We are out of this play with a small loss and will watch MRK for better trading opportunities in the future. Since the stock continued to sell-off on Thursday, we are pleased that the discipline of using a stop order has effectively saved us some money.
| SWY - Safeway, Inc. $52.94 -4.31 (-9.56) |
Safeway became a victim of the huge portfolio readjustment we have seen following yesterday's rate cut. Shares of Safeway had been slowly rising in recent weeks because it is perceived to be a defensive issue. The incredibly quick change in market sentiment has seen a rush to the exits among defensive issues. Now that the stock has dropped precipitously in two days, we can once again recognize the value of trading with stops.
| WWY - William Wrigley Jr. $89.50 -2.50 (-6.31) |
William Wrigley Jr. did not fare well following the Fed's surprise rate cut on Wednesday. Shares of WWY traded to an intra-day low of $91.31 on volume of 494,000 shares. The selling intensified during Thursday's session, taking the stock down to an intra-day low of $87.88 on 724,000 shares. We were stopped out at $91 and we are dropping WWY tonight.
New Momentum Drops
| FRE - Freddie Mac $60.00 -2.75 (-8.88) |
Freddie Mac did not like Wednesday's surprise rate cut by the Federal Reserve, or the implications that we are already in a recession. Thus, the stock sold off and triggered our stop at $64.50. We will continue to watch FRE for better trading opportunities in the future.
| MO - Philip Morris Cos. $40.50 -1.75 (-3.50) |
The Fed Funds rate cut hurt shares of Philip Morris on Wednesday. The stock hit an intra-day low of $42 on volume of 19.98 million shares. Our stops were triggered at $44, so after nine weeks on our list, we are dropping MO with a nice profit.
| UST - UST, Inc. $24.81 -0.88 (-3.25) |
Wednesday's historic rally was not good news for tobacco. Traders had been buying shares of UST because the company's core tobacco business offers shareholders a certain degree of immunity against a recession. The surprise Fed rate cut diminished the threat of a recession and reduced the attractiveness of an investment in shares of UST. The stock closed just below important support of $25.00 today. If the stock can stabilize here, it may be ripe for a bounce.
Drops Index
