New Split Updates
| LOW
- Lowes Companies $72.93 -0.97 (-0.64)
|
Lowes fell victim to overall weakness within the market on
Thursday. The stock lost $0.97 on low volume of 1.7 million
shares. The stock did find good support at its 10-dma at $72.17
and managed to close in the upper half of its intraday range.
Resistance is still present at $74, so traders shouldn't look to
initiate new positions until this resistance is conquered on
volume of at least 3.2 million shares. Our stops remain at $68
to limit downside risk.
New Candidate Updates
| BJ
- BJ's Wholesale Club $53.05 +1.03 (+1.81)
|
BJ bucked the market and headed higher on Thursday. Not only did
it break up through $53, it managed to close above the
psychologically important $53-level on good volume of 730,000
shares. Earlier in the day, BJ successfully tested support at
$51.70 and bounced higher. At this point, traders who want to
hop aboard the wholesaler's train should wait to see if BJ can
close above $53 again on Friday. However, don't chase the stock
much over $54, should it start to pick up steam, since it is
starting to get slightly overbought at current levels. We are
giving BJ one more day before we tighten up our stop, so for now
our stop remains at $50.00.
| ESI
- ITT Education $42.80 -1.30 (-0.64)
|
Unfortunately for our newer play, we weren't able to capture any
breathing room today. Sellers ruled the session, as the stock
lost $1.30 to $42.80. However, volume on the pullback was so
weak (only 79,000 shares were traded) that we won't start
worrying just yet. ESI also found good support at its 10-dma at
$42.81. With today's dip, ESI's MACD has started to roll over,
but there is plenty of time to avoid a sell signal as long as ESI
holds support around $42. Going forward, it has become more
important for ESI to prove that it still has buying support. To
do this, we need ESI to close over resistance at $44.50 on volume
of at least 250,000 shares for the day.
| MTG
- MGIC Investment $72.21 -1.58 (+0.81)
|
MTG gave back all of Wednesday's gains on Thursday, as the stock
retreated by $1.58 on the session. The bad news is that volume
picked up today as the stock headed lower. The good news is that
the current up trend is still in tact, as today's low was a
higher low. Going forward, we will look for MTG to find support
at its 10-dma at $71.38. Resistance has come in at $74. MTG's
MACD also looks to be rolling over, so hopefully the stock will
find support soon. Traders looking to get into MTG should wait
until the stock can close over $73.79 (previous closing high) on
volume of at least 750,000 shares for the day.
New Momentum Updates
| BEBE
- BEBE Stores, Inc. $30.10 -1.34 (-0.70)
|
BEBE followed the S&P Retail Index (RLX.X) lower on Thursday,
losing $1.34 to $30.10. We had a feeling that a sell off was
coming and the good news is that the overbought condition in BEBE
has been largely removed now. In addition, the stock found good
support at its 10-dma at $29.80. However, going forward we will
keep an eye on the MACD since it is about to issue a sell signal.
Traders looking to get into BEBE should probably wait for either
a bounce off support at $29.40 or a break above $32.25. In
either case volume should be close to 300,000 shares for the day.
| WMI
- Waste Management $29.73 +0.61 (+1.29)
|
WMI looks to be in the throws of a breakaway run. On Thursday,
the stock gapped higher at the open and never looked back.
Volume was again outstanding, with almost 5 million shares
changing hands. WMI's MACD is now decidedly positive and OBV is
shooting skyward. Our trash play may be the beneficiary of
investors looking for a place to hide from further tech weakness.
Going forward, we will look for volume to ease on any pullbacks.
The $30-level will be the next hurdle for our play, and momentum
traders might look to jump into WMI on a close above this level
on continued strong volume. Otherwise, a pullback to support at
$29 could also present a lower risk entry point.
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