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Thursday, June 2, 2011

trade targets... IBM, ATI, POT, DIS, SPY

(I'll update this post with charts when I can.)

Looking for target prices on the below names to add, enter or re-enter:

IBM - around 164 due to the weekly SMA support, and the trailing PE going below 14. (The daily indicates some support, that is why I added the other day.)

ATI - 60-62. (The stronger support is around 62, but depending on market weakness, I can see it briefly going around 60. Although it is acting nicely today.)

POT - 50-54. I do not seeing going to 50 with so much SMA support around the 52-53 level, but it all depends on the level of negative sentiment. (Although I did start entering this morning. The overall trend is just too powerful for Ag.) I will expect a pull back near the negative trend line around 59-60.

DIS - 39-40. It looks really interesting right now, but if negative sentiment takes this market, it may get pushed toward the 39 level.  Although, from a multiple perspective, it is very very attractive here. (It usually trades with a trailing PE of 19. But DIS is washing out the recent weak quarter result.)

SPY puts - With the additions to IBM yesterday and POT today, I added a protective short position. I will look to cover near 1290-1300. If the market decides to rally cause of a good employment number tomorrow, I will look to cover the position if the 14 SMA begins to be breached.

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