The SplitTrader.com Sunday 12/31/2000 2 of 2
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In This Candidate Newsletter:
=============================
Watch List
Plays - New - Updates - Drops
Tuesday's Candidate Play-of-the-Day - FRE
Weekly Play Results (12/25 - 12/30)
=============================
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==========
Watch List
==========
The following stocks are on our radar screen. We are watching
them for further developments before we add them to our In Play
List.
- SPLIT RUN CANDIDATES TO WATCH -
DUK - Duke Energy Corporation $85.25 -0.56
WHY WE LIKE IT: Companies like Duke that provide energy to end-
users are currently operating at peak capacity. With states like
California coming close to experiencing rolling black outs this
winter due to a lack of power, energy companies are looking at
increasing capacity to meet demand.
Looking at Duke's chart, we see that the stock is poised to break
out of a textbook base pattern.
POTENTIAL TRIGGER EVENT: A breakout and close above the stock's
previous all-time high of $90.50 on volume of at least 1.8
million shares would prompt us to shift Duke to our Current Play
list.
SUNDAY'S UPDATE: The Duke seems content to just tread water here.
The stock dropped below its 10-dma on Friday and looks like it
might continue to consolidate. We will keep watching to see if
strength in the utilities sector will pore over and start lifting
DUK. The MACD still remains positive but one more down day will
probably take the indicator into the red.
Chart = 
===
SEIC - SEI Investments Company $12.00 -11.44
WHY WE LIKE IT: SEIC, the investment solutions company,
administers and manages over $250 billion in assets. It has been
riding the wave created by the friendlier interest rate outlook.
The stock has been basing since early December and looks like it
may be ready for another run higher.
POTENTIAL TRIGGER EVENT: A breakout and close above the previous
high of $111 on volume of at least 400,000 shares would entice us
to put SEIC to work in our Current Play section.
SUNDAY'S UPDATE: Our conservative posture on SEIC paid off on
Friday. SEIC gave back almost all of its gains over the past two
trading sessions. This stock has suddenly become extremely
volatile! We will watch to see if $111 can hold as support
before adding SEIC to our Current Play list.
Chart = 
- SPLIT CANDIDATES TO WATCH -
SWY - Safeway, Inc. $62.50 +1.06
WHY WE LIKE IT: Safeway has pulled back from its highs as
expected, but has bounced nicely off its 50-dma, proving that
there may still be some strength to the stock.
POTENTIAL TRIGGER EVENT: A breakout above its old high of $61 on
strong volume of at least 2.5 million shares would merit a closer
look at the stock.
SUNDAY'S UPDATE: We are promoting SWY to the big leagues today,
as the stock was close enough to making the grade on Friday for
us to bite. The stock certainly broke its old high and volume
was heavy enough, given the holiday-getaway effect, to add SWY to
our Current Play list. Please refer to the list for stop
suggestions.
Chart = 
===
NTIQ - NetIQ $87.38 -9.00
WHY WE LIKE IT: NetIQ is a provider of eBusiness infrastructure
software. While the CBOE Software Index (GSO.X) has been
steadily making new lows, NTIQ has been bouncing off support at
the $74 level. We view this as a show of good strength and
anticipate NTIQ to be one of the first in the group to make new
highs once the bad news is out of the sector.
POTENTIAL TRIGGER EVENT: The first sign of continued strength
will be a break through the 50-dma, now located at $88.94. From
there, we would like to see NTIQ close above $110.50 on volume of
at least 1 million shares before we shift the software stock to
our Current Play list.
SUNDAY'S UPDATE: Up nine points, down nine points. It is obvious
that buyers and sellers are having it out. We should know who is
going to win the battle next week, as the stock is now at
critical levels. A drop below $80 would mean a victory for the
bears and the removal of NTIQ form the watch list. The MACD has
gone negative again, so it is not looking so good for our
potential software play.
Chart = 
===
CPS - ChoicePoint, Inc. $65.56 +0.81
WHY WE LIKE IT: CPS has been moving higher in a step-like
fashion since early November. The provider of intelligence to
insurance and government agencies has bucked the general market
trend and has proven to us that it has strong buying support.
POTENTIAL TRIGGER EVENT: We will look for CPS to make another
run past its old high of $61.75 before adding the stock to our
Current Play list. Volume accompanying this moves should ring in
at over 300,000 shares traded.
SUNDAY'S UPDATE: CPS ended off its highs of the day on Friday on
an increase in volume. Due to continued overbought conditions,
we will wait to see if CPS can come back towards $63 before
adding the stock to the Current Play list. If you near the old
high of $61.75, way to go, hold on and keep those stops in place.
Chart = 
- MOMENTUM STOCKS TO WATCH-
AVIR - Aviron $66.94 -3.00
WHY WE LIKE IT: This biotech company has a great potential
product in its FluMist, live virus nasal spray. The influenza
drug is still under development, but may be a big money maker
when and if it gets approved. The stock has displayed strong
relative strength and may be poised to take advantage in the
perceived relative safety of the biotech sector as opposed to the
high technology sector.
POTENTIAL TRIGGER EVENT: A breakout and close above $70 on
volume of at least 400,000 shares would likely cause us to move
AVIR to the hot seat on our Current Play list.
SUNDAY'S UPDATE: AVIR is still on its way to making the move to
our Current Play list. The stock caught a slight case of the Flu
on Friday, but given nature of its business, should be able to
overcome the ailment easily. Seriously, AVIR is displaying nice
relative strength and its MACD is still positive. We will
continue watching for a break above $70 on good volume before
moving AVIR to the Current Play list.
Chart = 
===
IVGN - Invitrogen Corporation $86.44 +0.31
WHY WE LIKE IT: IVGN's chart is shaping up nicely. The 50-dma
is offering good support and the stock has formed an ascending
triangle. The stock is at the pinnacle of the triangle, so we
should know soon if IVGN is going to pass or fail.
POTENTIAL TRIGGER EVENT: We are looking for IVGN to break
through the top of its wedge at $87.50 on volume of at least 1
million shares. We will look for conformation of the move to
come in the form of simultaneous strength in the AMEX
Biotechnology Index (BTK.X).
SUNDAY'S UPDATE: IVGN had an interesting day on Friday. After
spending most of the day in the red, IVGN rocketed over three
points in less than 20 minutes going into the close. This is
certainly encouraging, as most of this volume was big block
trades. We are within splitting distance of a breakout, so keep
a keen eye on this one going into next week. The MACD just went
positive in IVGN and the BTK.X is getting ready to break out of
its own triangle formation!
Chart = 
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=====================
SplitTrader.com Plays
=====================
The PLAY LEGEND:
SplitTrader.com Candidate Play Recommendations.
Candidate Play-of-the-Day is our number one candidate
recommendation for the following trading day.
Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Drops are closing plays that we feel have lost the advantage.
You will see:
Stock Symbol, Company Name, Closing Price, (change for the week)
Picked at date and Change since picked
Terms:
BoD = Board of Directors meeting
ADV = Average Daily Volume
dma = daily moving average
At the SplitTrader.com website, we have comprehensive profiles
for each stock that we are playing or have played in the past, as
well as hundreds of others. Please take the time to visit the
site to view the profile of the stock(s) you wish to learn more
about.
=================================================================
=========
NEW PLAYS
=========
NEW SPLIT RUN PLAYS 12/31/00
============================
NONE
NEW SPLIT CANDIDATE PLAYS 12/31/00
==================================
SWY - Safeway, Inc. $62.50 (+2.62)
The grocery business can be tough due to competition and
generally low margins. However, Safeway has done a very good job
of increasing margins through their deli, bakery, and other fresh
foods operations. In addition, Safeway has been introducing
other services to their customers by building partnerships with
banks, such as Wells Fargo (WFC) and with coffee giant Starbucks
(SBUX). After rising steadily over the past month, Safeway's
share price has reached a level that could entice the company to
announce a split. The last 2:1 split was announced in
conjunction with the January earnings release of 1998 when the
stock was trading at $65.81. The next earnings release is
tentatively scheduled for January 25th. Two technical indicators,
the MACD, and the Money Flow look particularly strong. SWY is at
a critical technical juncture. A move above Friday's high of
$62.69 would break the stock above a long-term double top
pattern. If this occurs it could be very bullish. Recent
trading has established support in the $59.00 to $60.00 range.
Picked on December 31st @ $62.50
Change since picked +0.00
Stop Loss @ $58.00
Chart =
NEW MOMENTUM PLAYS 12/31/00
============================
None
=======
UPDATES
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SPLIT RUN PLAY UPDATES 12/31/00
===============================
TALX - TALX Corporation $40.00 (+1.00)
The trend toward outsourcing human resource applications has
fueled growth at TALX's application line of business. Within this
division, the company's revenues for fiscal 2000 grew by 56% and
hold a healthy backlog of orders going into 2001. Application
services play a key role in TALX's solutions for Fortune 500
companies. On Friday, TALX shares pulled back from yesterday's
advance and retested support at $40. An intraday fall sent the
stock below this level to $39.25, but shares mustered a late day
rally to close at $40. Braced by several previous highs at this
level, we feel that the $40 mark could be an important base for
the next leg up. If shares can bounce sharply off this level on
good mid-day volume of 50,000 shares or better, then look for the
stock to face its fist challenge at the all time high of $42.13.
Further up, TALX will need to confront tougher opposition at $45
and $50. Advances above these resistance levels will present us
with good entry points, should good volume of 100,000 shares or
more accompany the run. However, if TALX can't hold support at
$40, then shares may meet up with a short-term pullback. An
overbought reading in the stochastic confirms this possibility.
If this does take place, then look for secondary support at $39
to be reinforced by previous highs and the 10-dma of $38.76. A
decline to $36, which does seem less likely, will be faced with
firm support from previous bottoms and the 20-dma of $35.44.
We'll set stops just below this level at $33.25. Let support and
resistance determine entries and exits ahead of the payable date
of 1/19.
Picked on December 17th @ $38.00
Change since picked +2.00
Stop Loss @ $33.25
Chart = 
SPLIT CANDIDATE PLAY UPDATES 12/31/00
=====================================
AXF - AXA Financial Inc. $55.88 (+1.38)
AXA Financial finished the year up 67%, after posting nice gains
for the last trading week of the year. The year 2000 has not been
the most exhilarating year for investor's in general, compared to
previous years, but we think that AXA has performed exceptionally
well in light of the bearish overtones in the market. On Friday,
this insurance and finance company finished down slightly but
managed to post gains for the week. The stock traded on very low
volume of 841,000 shares, which is less than half of its average,
based on a 3-month cumulative total. The stock held at the first
level of support, which was the 5-dma at $55.92. Below that,
there is support at the 20-dma at $55.32 and then the 50-dma at
$54.90. Resistance for the stock, as we enter the New Year, will
come in at $57.25. Once earnings season revs up in the next
couple of weeks, we may see some momentum drive AXF higher. Look
for AXF to rise in conjunction with a broad based rally in the
major indices, especially the Dow Jones Industrial Average (INDU)
and the NYSE Financial Index (NF). Use a quick bounce off a
support level as a possible entry point if it is accompanied by
good volume. We will carry on with our stop loss at $53.00 for
now.
Picked on November 30th @ $56.31
Change since picked -0.44
Stop Loss @ $53.00
Chart = 
===
D - Dominion Resources $67.00 (+1.63)
Dominion Resources is a utility holding company with a total
production capacity of 2.7 trillion BTUs per day. On Friday,
shares of Dominion traded to an intra-day low of $66.19 before
bouncing back to close at $67 on volume of 454,000 shares. The
stock has been consolidating over the past three sessions and
Dominion could spend some time in the $66-$68 range. Hopefully,
the volume will return next week and push the stock to new highs.
Shares of Dominion are currently trading above historic split
range, so we could get a split announcement following their next
BoD or at their next earnings release set for 01/26/01. Their
last split announcement came out of a BoD when the stock was
trading in the $45-55 range. Until then, support has come in at
$65.88, Wednesday's intra-day low, with additional support at the
10-dma, currently at $64.75. Resistance is holding at $68 and
then $70. Traders may consider opening new positions on a bounce
off of $65.88 or a breakout above $68 on volume of at least
400,000 shares by midday. Our stops remain at $64.
Picked on November 19th @ $62.69
Change since picked +4.31
Stop Loss @ $64.00
Chart = 
===
JNJ - Johnson & Johnson $105.06 (+3.56)
Johnson & Johnson is a leading manufacturer of consumer,
pharmaceutical & professional health care products. The stock hit
its third consecutive 52-week high on Friday. Shares of JNJ
traded up to $105.94 before running into resistance late in the
session. The stock continues to trend higher as investors move
money out of tech and into safety in front of a weak earnings
season. We are looking for a split from JNJ with their next
earnings release on January 17th or at their next BoD. JNJ
announced their last split out of a BoD meeting when the stock
was trading for less than $100. For now, the stock has support at
Friday's intra-day low of $104.50 with stronger support at
$103.31, the 5-dma. Resistance has moved up to Friday's intra-day
high of $105.94 and then the all-time high of $106.88. A bounce
off of $104.50 or a breakout above $106 on midday volume greater
than 1.6 million shares may be possible entry points. We have
bumped our stops up to $101 to limit potential losses.
Picked on December 26th @ $102.38
Change since picked +2.69
Stop Loss @ $101.00
Chart = 
===
MRK - Merck & Company $93.63 (+3.13)
Merck & Company rewarded shareholders by appreciating by 36% for
the year 2000. The stock certainly had its low points though. At
one point during the March sell-off, MRK traded as low as $52.00.
We think it impressive that from that low point, MRK has nearly
doubled for the year. Additionally, the stock made a noble effort
to close the year on a "high" note as it came within 75 cents of
achieving a new 52-week high on Friday. The final day of trading
for 2000 saw only 3.7 million shares exchanged for MRK,
substantially below its 3-month average volume of 6.2 million
shares. We will be looking for the upcoming earnings reports to
possibly induce more money to flow into the drug sector. If tech
earnings turn out to be as low as predicted, the drugs might be
the beneficiaries of still more money seeking safety. We remain
hopeful that the company will announce a stock split with
earnings as well. Next week, look for MRK to rise on good volume
when considering a new play opportunity. Resistance should be
encountered at $96.69, last years 52-week high. Support should
hold at the 5-dma at $92.85 and then at the 20-dma at $91.45.
Continue to watch the Dow Jones Industrial Average (INDU) and the
AMEX Pharmaceutical Index (DRG.X) when considering opening a new
play in MRK. We are going to keep our stop on this play at
$91.00.
Picked on November 28th @ $92.63
Change since picked +1.00
Stop Loss @ $91.00
Chart = 
===
PFGC - Performance Food Group $51.28 (+1.78)
PFGC finished the year with a somewhat lackadaisical effort. The
strong rally among momentum stocks fizzled a bit at week's end.
Our $51.00 stop was threatened during Friday's action. The hope
is that this trend line support will hold on Tuesday. The strong
rally that began in November for this major food processor and
supplier has had similar pullbacks to the one we saw on Friday.
If we are not stopped, we think there is a good chance that PFGC
can recover and take a look at the recently established high of
$56.75 sometime during the coming week. There may be a little
resistance at today's high print of $55.13 on the way back up.
The increase in recent volatility may be due to year-end
portfolio shuffling. However, an increase in volatility
sometimes is a warning that a stock is near an important top.
The long-term technical indicators remain solid. The strongest
indicator is the MACD. Friday's action may have broken the up
trend in the OBV and the Money Flow, but it is too early to tell.
Picked on December 17th @ $49.75
Change since picked +1.53
Stop Loss @ $51.00
Chart = 
===
RDN - Radian Group $75.06 (+0.13)
There was broad based, but mostly light profit taking that took
place on Friday among some of the strongest industry groups.
Financial stocks figure prominently among the groups that are
exhibiting the strongest relative strength. Radian is a mortgage
insurance company and is affected by most of the same influences
that affect more traditional financial companies such as banks.
The recent easing of a hawkish stance by the FOMC has sparked
renewed optimism that the coming fiscal year could be solid for
companies like Radian. The stock established a new all time high
of $76.94 on Thursday. The small pullback on Friday may have
been caused by an RSI that is currently indicating a short-term
overbought condition. Although this makes us a bit cautious in
the short term, the MACD and the clear up trend in the share
price help us to be bullish about the stock's immediate future.
The all time high should provide light resistance and we see
short term trend line support at $73.50.
Picked on December 21st @ $72.31
Change since picked +2.75
Stop Loss @ $72.00
Chart = 
===
RKY - Adolph Coors Company $80.31 (+4.38)
To grow profitably in key markets, Coors has invested in highly
targeted advertising, innovative packaging, and creative
promotions designed to bolster its brand value. The result? Coors
is now the best selling beer in Puerto Rico and the second best
selling beer in Canada. What's more, RKY shares continue to make
new highs. Closing the week with an intraday run to an all time
new high of $82.31, RKY remains poised for an advance to $85.
However, the stock is showing that plenty of intraday resistance
lies ahead of this mark. Keeping this in mind, we'll look for the
stock to face an initial challenge at the two previous highs of
$81.44 and $82.31. Tougher opposition will follow at $85 and $90.
We'll look for entry points if shares can advance through
resistance on volume of 390,000 shares or better. Nevertheless,
conservative traders may want to wait for the stock to close
above resistance, confirming a breakout, prior to opening plays.
Other entry signals will come when the stock can bounce sharply
from support on good mid-day volume of 190,000 shares or greater.
With that said, look for good support bases to come at $80 and
further down at $79, bolstered by a previous top and the 10-dma
of $78.59. If shares break through these key support levels, our
stop at $78 will lock in our gains.
Picked on December 7th @ $76.56
Change since picked +3.75
Stop Loss @ $78.00
Chart = 
===
XL - XL Capital Limited $87.38 (+4.32)
XL Capital Limited, located on the tiny island of Bermuda, rose
68% for the year and matched it 52-week high on the last day of
trading. On Friday, XL topped out at $89.25 but was unable to
move any higher. XL only traded 400,000 shares for the day, which
is 28% lower that it's normal 3-month volume of 515K. The
insurance/finance company remains firmly in our crosshairs as a
stock split candidate. We are hopeful that board members will
authorize a split when the company releases its Q4 results in the
near future. The company has almost 1 billion shares authorized
and only 127.5 million outstanding. We see this past year's
phenomenal growth in the share value as a great excuse to reward
investors with a split. Additionally the split would make the
stock more affordable to the average investor and more accessible
to mutual funds. Once trading resumes on Tuesday, look for the
stock to encounter resistance at $89.25. Support should be solid
at the 5-dma now located at $86.25. Use a bounce off support or
an assault on resistance on good volume as possible entry points
for new plays. We encourage you to look for strength in the S&P
Insurance Index (IUX.X) and the Dow Jones Industrial Average
(INDU) as conformation of any moves higher. We are going to keep
our stop on this play at $85.00 to protect profits should the
stock tailspin south.
Picked on December 3rd @ $80.25
Change since picked +7.13
Stop Loss @ $85.00
Chart = 
MOMENTUM PLAY UPDATES 12/31/00
===============================
FRE - Freddie Mac $68.88 (+4.44)
Freddie Mac ended the year with a 51% gain as well as trading at
its 52-week high. Freddie Mac gave it the old college try on
Friday and was able to match its 52-week high price of $70.13,
which was accomplished just 11 days earlier. Like many other
stocks on the day, the crucial element was absent, namely the
volume. The stock only traded at 50% of it average 3-month volume
of 3.4 million shares when on Friday it recorded a meager 1.7
million. Additionally the stock was swimming against the flow of
traffic when it achieved its high of the day as the broad markets
had already begun to drift lower. FRE securitizes mortgages it
has purchased from lenders and resells them to investors in the
form of guaranteed mortgage passthrough securities. Next week we
will look for further signs of strength in the form of stronger
momentum coupled with greater volume. As of Friday's close, the
stock has support at $68.00, which represents a mild
consolidation area followed by the 5-dma at $67.20 and then the
20-dma at $64.90. Resistance will be the 52-week high of $70.13.
Watch for the major markets to rally on good volume with support
coming from the small indices, specifically the NYSE Financial
Index (NF). We will place our protective stop just below support
at $64.50.
Picked on December 28th @ $68.94
Change since picked -0.06
Stop Loss at $64.50
Chart = 
===
MO - Philip Morris Cos. $44.00 (+0.50)
Philip Morris has been under some pressure over the past two
sessions. On Friday, shares of the tobacco and consumer product
conglomerate closed at its intra-day low of $44 on volume of 5.05
million shares. MO closed below the 5-dma for the first time
since December 11th, so we may need to re-test support at the 10-
dma before it moves higher. Going forward, MO has support at the
10-dma, now up to $43.44, with additional support at $43.31, the
December 19th intra-day high. Resistance remains at Wednesday's
intra-day high of $45.50 and then $47.50, the 2/5/99 intra-day
high. Traders should be looking for a bounce off of $43.44 or a
move above $45.50 on midday volume of at least 4 million shares
before starting new plays. We are keeping our stops at $43 to
lock in profits.
Picked on October 26th @ $36.00
Change since picked +8.00
Stop Loss @ $43.00
Chart = 
===
RHB - RehabCare Group Incorporated $51.38 (+4.63)
RHB's strengths as an outsourcing company, along with the proven
success of its operating strategy have been instrumental in the
company's triple digit stock return this year. Moreover, the
company's relatively low P/E ratio of 37.52, compared to the
industry average of 52.77 could provide the stock with additional
room to grow next year. As for our play, shares finished off the
week with a 1.25-point run coming off support at $50. Good volume
of 150,500 shares managed to fuel an intraday rally to a new all
time high of $52.50, before closing at $51.38. The S&P Health
Care Index (HCX.X) formed a similar pattern on the day, advancing
to a new intraday all time high of 954.20, before late-day
selling pushed the sector down. Because of RHB's close
correlation to the HCX.X, we feel that it's important to
reference this index, prior to opening positions. With that said,
we'll look for initial resistance at $52.50 to be followed by a
more difficult test at the $55 mark. When good volume of 150,000
shares or better accompanies the stock through these levels, then
look for potential lower risk entry points. As for support,
continue to look for good support at $50, braced by the 5-dma of
$49.88. Sharp bounces off this level will provide us with
intraday buying opportunities. Look for secondary support at the
intermediate high of $47.56 to come ahead of our stop at $47.
Remember to look for strength in the HCX.X to confirm your
buys/sells.
Picked on December 24th @ $46.75
Change since picked +4.63
Stop Loss @ $47.00
Chart = 
===
UST - UST, Inc. $28.06 (-0.63)
Shares of this major smokeless tobacco producer slipped only a
little on Friday, as owners of this value stock appeared
unwilling to part company with their holdings. We mentioned in
our last report that there is renewed speculation that RJR may be
eyeing UST for a possible takeover. RJR has the cash to get a
deal done and the economy of scale savings would be substantial.
In the meantime, long term shareholders appear content with UST's
low P/E of 10.39 and the stable growth that UST promises to offer
going forward (not to mention the substantial dividend yield).
Now that UST has climbed back into the trading range that the
stock was stuck in throughout much of the 1990's, it looks like
the stock could stay here for a while. The next resistance is
$30.00. If resistance can be surpassed, a move to test the all
time high of $36.88 (established in January of 1998) seems
possible. The most recent breakout occurred at $27.00 and we are
comfortable maintaining our stop at this support level.
Picked on December 19th @ $25.75
Change since picked +2.31
Stop Loss @ $27.00
Chart = 
=====
DROPS
=====
SPLIT RUN PLAY DROPS 12/31/00
=============================
NONE
SPLIT CANDIDATE PLAY DROPS 12/31/00
===================================
NONE
MOMENTUM PLAY DROPS 12/31/00
=============================
EOG - EOG Resources $54.63 (+4.44)
EOG Resources sold off after hitting an all-time high of $56.69
on Thursday. Shares of EOG fell to an intra-day low of $53.94 on
volume of 1.19 million shares during Friday's session. We were
stopped out at $54 so we are dropping this play tonight.
Picked on December 21st @ $51.63
Profit/Loss = +2.37 (+5%) (Stopped out Friday @ $54)
Best Profit = +5.06 (+10%)
Chart = 
PLAY-OF-THE-DAY
===============
Sunday, December 31, 2000
=============================
FRE - Freddie Mac $68.88 (+4.44)
Sunday's Comment:
Freddie Mac ended the year with a 51% gain as well as trading
at its 52-week high. Freddie Mac gave it the old college try
on Friday and was able to match its 52-week high price of
$70.13, which was accomplished just 11 days earlier. Like many
other stocks on the day, the crucial element was absent,
namely the volume. The stock only traded at 50% of it average
3-month volume of 3.4 million shares when on Friday it
recorded a meager 1.7 million. Additionally the stock was
swimming against the flow of traffic when it achieved its high
of the day as the broad markets had already begun to drift
lower. FRE securitizes mortgages it has purchased from lenders
and resells them to investors in the form of guaranteed
mortgage passthrough securities. Next week we will look for
further signs of strength in the form of stronger momentum
coupled with greater volume. As of Friday's close, the stock
has support at $68.00, which represents a mild consolidation
area followed by the 5-dma at $67.20 and then the 20-dma at
$64.90. Resistance will be the 52-week high of $70.13. Watch
for the major markets to rally on good volume with support
coming from the small indices, specifically the NYSE Financial
Index (NF). We will place our protective stop just below
support at $64.50.
Picked on December 28th @ $68.94
Change since picked -0.06
Stop Loss at $64.50
Chart =
================================================================
Weekly Play Results (12/25 - 12/30)
================================================================
Plays Beginning Price Ending Price Gain/Loss % Change
----- --------------- ------------ --------- --------
AXF $54.50 $56.81 $2.31 4.24%
D $65.38 $66.69 $1.31 2.00%
EOG $52.00 $54.00 $2.00 3.85%
FRE $68.94 $69.50 $0.56 0.81%
JNJ $102.38 $105.00 $2.62 2.56%
MO $43.50 $44.50 $1.00 2.30%
MRK $90.50 $94.13 $3.63 4.01%
PFGC $49.50 $51.94 $2.44 4.92%
RDN $74.94 $75.44 $0.50 0.66%
RHB $46.75 $51.75 $5.00 10.70%
RKY $74.94 $80.81 $5.87 7.84%
TALX $39.00 $40.00 $1.00 2.56%
UST $28.69 $28.19 -$0.50 -1.75%
XL $83.06 $88.63 $5.57 6.70%
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