| RadioShack (RSH) -- Daily |
Notice how the stock has been holding at about $30, each day closing at or just above $30. But Wednesday saw a close below this key support level on slightly higher-than-average volume. RSI is close to being oversold, but is still above 30. You should consider a short if the stock falls down to around $29.25. Once the short position is opened at $29.25, then put a fairly tight buy-stop at around $30.90. The initial downside target for this trade is $25. Shares of RadioShack closed at $29.41 Wednesday.
Updates on Previous Picks
- Centex (CTX): This
short trade is just getting started, with a cost basis of $39.90. There's still a loose stop at $51, with a price target of $25. Obviously, this is a long-term short idea, so you have to be patient. Shares closed at $39.51 Wednesday.
- D.R. Horton (DHI - Get Report): The
cost basis for this one is $19.45, with a price target of $16. This stock is moving in the right direction, with a stop at $21.40. Lower that stop to $19.75 to cut the risk down to a reasonable level. Shares closed at $17.48 Wednesday.
- Force Protection (FRPT - Get Report): The
short entry for this one was at $19.90, with a target at $17. That target was hit this week, so this short trade was closed out for a quick profit. The stock still looks like it has more downside ahead, but a target is a target, so let's call it a winner and move on.
- Arrow Electronics (ARW - Get Report): This
short trade was opened in early June at $40.90. The stock has been gradually moving lower, and the most recent adjusted stop was at $39.65. That stop was hit last week, so this trade was closed out for a small profit.