New Split Updates
None
New Candidate Updates
| BJ
- BJ's Wholesale Club $51.03 -0.97 (+2.72
|
In our last update, we spoke of profit taking in BJ. Well, that
profit taking arrived on the scene on Thursday, however, it was
mild in nature and doesn't have us worried yet. The stock might
be heading back towards support at $50 so don't be surprised if
we see a few more down days on light volume before things pick
back up again. That said, we suggest traders wait for a bounce
off $50 before initiating new positions in retail play. Lastly,
BJ reported Thursday that same store sales rose 4% for May, with
double-digit sales growth within its southeast region stores.
| CEFT
- Concord EFS $52.33 +1.58 (+1.73)
|
Those of you who were waiting for a definitive close over $51.50
should have gotten into CEFT today. The stock had a strong
session that was marked by some large block trades hitting around
1 p.m. eastern time. These trades served to boost the stock
higher into the close, finally giving us a good close over
$51.50. Volume was also strong on the breakout, with 3.4 million
shares trading on Thursday. Traders looking to initiate a
position within CEFT could do so on a retest of the $51.50 level,
or a break above today's high of $52.70.
| CIMA
- Cima Labs Inc. $85.75 +2.15 (+10.95)
|
You know a stock has institutional support when it rockets close
to 10% in one day and never settles back the next day. We were
anticipating that CIMA would retrace back to the $81 level but
instead, the stock made a new high today. Support should be
coming into CIMA around $82.50 and the MACD is signaling a new up
trend. Traders that are considering opening a position in CIMA
could look to do so on a bounce off of $82.50, or on a strong
advance through resistance at today's high of $85.75 (also the
closing price).
| HRB
- H&R Block $63.90 +1.04 (+4.18)
|
Our tax service provider managed to notch another new high today.
HRB took out resistance at $63.75 and advanced closer to
psychological resistance at $65. However, we won't put too much
significance into Thursday's performance due to the fact that if
it weren't for a few block trades at the end of the session, HRB
would have closed below $63.75. Momentum traders looking for a
few points in HRB could use a breakout above today's high of $64
as an entry point. This is provided that HRB can muster up at
least 600,000 shares traded for the day.
| MTG
- MGIC Investment $71.77 -0.63 (+4.93)
|
MTG had a stellar $2.30 up day on Wednesday, so we weren't too
surprised by the slight pullback Thursday. MTG shares actually
traded as high as $74 on Wednesday before pulling back into the
close. Lighter volume and low volatility marked Thursday's trade
in MTG, so we might see a pickup going into the weekend. That
being said, traders should be aware that resistance has come in
at $73 and $74, so we would wait until resistance at $74 is
conquered before adding new positions. More aggressive traders
might consider adding positions on a break above $73, with a
corresponding tight stop at $71. Our stops on this play remain
at $66.75 to protect on the downside.
| SRDX
- SurModics, Inc. $56.30 +0.30 (+3.30)
|
MTG had a stellar $2.30 up day on Wednesday, so we weren't too
surprised by the slight pullback Thursday. MTG shares actually
traded as high as $74 on Wednesday before pulling back into the
close. Lighter volume and low volatility marked Thursday's trade
in MTG, so we might see a pickup going into the weekend. That
being said, traders should be aware that resistance has come in
at $73 and $74, so we would wait until resistance at $74 is
conquered before adding new positions. More aggressive traders
might consider adding positions on a break above $73, with a
corresponding tight stop at $71. Our stops on this play remain
at $66.75 to protect on the downside.
New Momentum Updates
| WMI
- Waste Management $28.59 +0.08 (+0.79)
|
WMI eked out a small gain on Thursday and remains on its breakout
track. Shares of WMI continued on their recently revived uptrend
and found good support along the way at the 5-dma at $28.22.
With today's advance, WMI's MACD was just able to issue a buy
signal. Volume was light on Thursday, with just 1.5 million
shares changing hands. WMI's three-month average daily volume is
2.1 million shares. We will be watching to see whether the stock
can take out mild resistance at $29 in the near future.
Meanwhile, traders might consider initiating new positions in WMI
if the stock can break above Wednesday's opening price of $28.80
on volume that puts WMI on pace to do 2.5 million shares for the
day. Our stops remain just under the previous base at $26.90.
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