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Amazon.com - AMZN - close: 33.35 chg: -0.36 stop: 34.81

Company Description:
Amazon.com, Inc., a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as beauty, health and personal care, jewelry and watches, gourmet food, sports and outdoors, apparel and accessories, books, music, DVDs, electronics and office, toys and baby, and home and garden. (source: company press release or website)

Why We Like It:
The Internet stocks, save for Google (GOOG), appear to be melting under the summer sun. AMZN and YHOO are breaking down and we see no impetus for investors to buy them ahead of their Q2 earnings report. AMZN has been struggling under resistance near the $37.00 level for months - ever since the gap down in early February. Now after its last test of resistance at $37.00 in early June the stock has been sinking under a steady trend of lower highs. This pattern finally blossomed into a breakdown below short-term support in the $34.00 region (and its 50-dma). We are going to target the April low at $30.60. Currently the bearish Point & Figure chart for AMZN points to a $16.00 target. More conservative traders may want to exit near $31.00 where you'll find AMZN's 200-week moving average. The biggest risk we see to bears, and there are a few of them with the latest data putting short interest at 12 percent of the float, would be surprisingly bullish earnings results from AMZN's rivals like GOOG and YHOO. GOOG isn't expect to report earnings until July 21st but YHOO is due out around July 19th. Both earnings dates are unconfirmed. 

Picked on June 29 at $33.35
Change since picked: + 0.00
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume: 6.0 million 

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Forward Ind. - FORD - close: 17.23 chg: -0.70 stop: 18.95

Company Description:
Forward Industries, Inc. designs and distributes custom carrying case solutions primarily for cellular phones and home medical diagnostic equipment. The Company sells its products directly to original equipment manufacturers and also markets a line of Carry Solutions under the "Motorola" brand name. (source: company press release or website)

Why We Like It:
If you are looking for some excitement then checkout shares of FORD. The stock has been a momentum powerhouse over the last six months leaving a wake of injured bears in its path. Yet now after topping out near the $23.00 level the stock is breaking down. FORD broke round-number, psychological support at the $20.00 level on big volume a few days ago. Now the stock has broken technical support at its simple 50-dma. Plus the stock has broken previous resistance, now support at the $17.50 level. The P&F chart also shows a bearish reversal and now points to an $11.00 price target for FORD. The two biggest risks we can see are the following. First, we cannot find an earnings due date for FORD. The last report was on April 21st, which would suggest the next report might be due out around July 21st. We always want to avoid surprises and do not plan on holding over FORD's earnings report if we can find it. The second biggest risk here is a short squeeze. The latest data puts short interest at 29.8 percent of its 6.0 million share float. As you know when you short a stock your risk is technically unlimited. We can put a stop loss in to try and protect ourselves but it's no guarantee we'll be filled at our stop price. Therefore we suggest that readers consider this play carefully. We are going to suggest positions here at $17.23 with a target in the $14.50-14.00 range, which would equate to a 50 percent retracement of its January to June run up. More conservative traders may want to use a tighter stop loss and exit near the $15.00 level or avoid the play altogether.

Picked on June 29 at $17.23
Change since picked: + 0.00
Earnings Date 07/21/05 (unconfirmed)
Average Daily Volume: thousand

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