Today's spotlight stock is a short idea in the otherwise strong Internet sector.
Long Ideas
| Stock | Symbol | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| Cemex S.A.B. de C.V. (Mexico) ADR | CX | Building | $9.01 | 9.0-10.0 | 14.0 | 7.0/8.0 | 5/5'er, Recent Pullback to improve Risk-Reward, Access to Int'l markets via ADR. |
| Wyndham Worldwide Corporation | WYN | Leisure | $105.25 | 100-106 | 133 | 93 | 5 for 5'er, leader in favored LEIS sector, bullish triangle pattern, pos wkly mom change, Earn. 10/24. |
| Cai International, Inc. | CAI | Transports/Non Air | $30.94 | hi-20s | 37.50 | 25 | 5/5'er, Improvement for Transport area, New RS buy signals in 2017, Can be used as covered write (Jan 30 calls). |
| Crane Co. | CR | Machinery and Tools | $80.51 | 74-78 | 91 inc. | 70 | 3/5'er, New buy signal after test of long-term trend, Positive weekly momentum change, Earn. 10/23. |
| Marsh & McLennan Companies, Inc. | MMC | Insurance | $83.66 | lo 80s | 100 | 76/71 | 5 for 5'er, favored Insurance sector, consecutive buy signals and new highs, pos wkly and monthly mom, Earn. 10/26. |
| Y P F Sociedad Anoni Ads (Argentina) ADR | YPF | Oil | $21.97 | 20-22 | 41 | 18.0 | 3/5'er, Oil sector moved Bear Confirmed at 38%, PB to middle of trading band, Can be used as a Covered Write (Jan 21 calls). |
| The Toro Company | TTC | Machinery and Tools | $61.87 | lo-60s | 73 | 58/54 | 4/5'er, Long-term leader that is now oversold near-term, Bearish Signal Reversed on 1/2 pt chart. |
| Eagle Bancorp, Inc. | EGBN | Banks | $66.40 | mid-60s | 77 | 60 | 5/5'er, Sector Leadership (Banks), Big Base Breakout, Earn. 10/17. |
Short Ideas
| Stock | Symbol | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| DaVita, Inc. | DVA | Healthcare | $58.47 | (hi-50s) | 53 | 64 | 0/5, Laggard in Fav. Healthcare group, 93rd out of 104 in sector matrix, "Sell on Rally" candidate. |
| Akamai Technologies, Inc. | AKAM | Internet | $47.68 | hi 40s | BOT | 54 | 0 for 5'er, bottom of INET sector, trading at 52-week lows, consecutive sell signals |
Removed Ideas
| Stock | Symbol | Sector | Current Price | Action Price | Target | Stop | Notes |
|---|---|---|---|---|---|---|---|
| Kellogg Company | K | Food Beverages/Soap | $62.81 | (68-72) | 57 | 75 | K is about 76% OS, trading below our ideal actionable range. Okay to hold or trim open positions. Buy stops can be lowered to $73 |
Follow-Up Comments
| Comment |
|---|
| ALB Albemarle Corp R ($135.81) - Chemicals - ALB has reached and exceeded our price objective of $131 from the recommendation back in April. It now sits above the top of its 10-week trading band, and thus more than 100% overbought. Profits can be taken or trimmed here. A very tight stop is now afforded at $126, for those who want to remain invested but do not want to risk losing gains. |
| ADI Analog Devices, Inc. R ($86.27) - Semiconductors - A new buy signal is completed a $86 with Friday's action. Those who remain invested from the long recommendation back in April may look to raise stops to $76. |
| ESRX Express Scripts, Inc. R ($63.43) - Healthcare - We will continue to adjust our buy stop along with the trend line for short positions in ESRX. A trend change would now occur with a move to $65 or higher, and is the point at which we recommend covering any open positions. |
| AVGO Broadcom Ltd R ($242.30) - Semiconductors - AVGO was a long recommendation from early July around $240. It has spent the last two months consolidating between support at $228 and resistance at $256. Open positions may be held here, but we will raise our stop loss point to $224, a potential spread triple bottom. Note that a breakout to $260 would complete a quadruple top and would confirm demand remains in control here. |
DWA Spotlight Stock
AKAM Akamai Technologies, Inc. R ($48.72) - Internet - Although a member of the favored Internet sector, AKAM can be categorized as a negative diverger recently achieving a new 52-week low after several months over lower lows and lower highs. As a result, it ranks near the bottom of the sector matrix, coming in at 41 out of 48 stocks. It also has 0 positive attributes. New short positions can be taken on in the upper 40's, with a buy stop afforded at $54.
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