Interpublic Group - IPG - cls: 11.46 chg: +0.16 stop: 10.79 *new*
Yesterday's relative strength in IPG was a sign that the stock might be headed for new relative highs. In last night's play-of-the-day comments we mentioned that strong earnings from competitor Omnicom might provide the catalyst for a breakout. OMC wound up missing the consensus estimates by a penny, but also reported good top-line results with better-than-expected revenue. An initial positive reaction to that news pushed IPG to a fresh relative high of $11.49 this morning. Shares recovered nicely from an intraday pullback and finished 1.4% in the green. With the 100-dma ($11.45) not giving the bulls any major problems, there are no remaining levels of technical resistance until $13.00. We'd expect IPG to make its way towards that region if the broader market maintains a bullish bias. The daily stochastics (5,3,3) are overbought but haven't dropped from the upper band. In light of the current momentum, new entries could be targeted on a move above $11.50. Our stop has been bumped up to $10.79, just under Friday's low. This should protect a 4.1% gain.
Yahoo Inc. - YHOO - close: 25.08 change: -0.21 stop: 23.99 *new*
YHOO continued to work its way lower on Monday morning before shares bottomed out near the 21-dma ($24.50). The bulls were on the defensive in early trading, but weren't about to yield that moving average while the rest of the tech sector was rallying! The stock pared its early losses and finished solidly in the green. The upside momentum continued this morning as shares pegged an intraday high of $25.57, only to see the pendulum swing back into the bears' favor. The intraday reversal mirrored a similar pullback in the INX.X internet index, which topped out below its relative highs. The technical picture's bit clouded right now with shares not showing much direction over the past week. However there is a slight downward trend, so we're going to take the defensive measure of raising our stop to $23.99. More conservative traders could use a stop just under the 21-dma.