Assisted Living's Teetering

If the stock drops below $11, it could fall to $9.50 before finding any kind of meaningful support. On the other hand, Assisted Living would have to move above $12 before I would begin to doubt the downtrend. As such, I'm suggesting two alternative entries.

First, any print below $11 -- say $10.95 -- would be an aggressive short entry. Alternatively, any advance to $11.60 would be a more conservative short entry.

Either way, the buy stop should go at around $12.00. If the stock climbs to that level, it's probably moving higher.

Assisted Living shares closed at $11.24 Tuesday.

Updates on Previous Picks

• Akamai Technologies (AKAM): I described a couple of alternative entries for this short trade, and the entry at $42.35 was hit, with a tight buy-stop at $44.10. On Friday, Akamai gapped up to $44.36, so the short closed out for a 4.7% loss.
• Goldcorp (GG) remains on the Watch List. Wait for the stock to run up to $25 before entering a short position. Shares closed at $23.31 Tuesday.
• Lam Research (LRCX), last week's suggestion, is also on the Watch List. Its entry would be on a snapback toward $54, at around $53.80. The stock closed at $51.35 Tuesday.

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