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  BIIB

New Long Plays

None today.
 

New Short Plays

Adobe Systems - ADBE - close: 29.64 change: -0.47 stop: 30.41

Company Description:
Adobe is the world's leading provider of software solutions to create, manage and deliver high-impact, reliable digital content. (source: company press release or website)

Why We Like It:
The GSO software sector looks vulnerable to more profit taking and that doesn't bode well for shares of ADBE. ADBE has rallied sharply from its July lows but the rally has stalled under resistance near the $30.00 level where its 50-dma and 200-dma have converged. It would appear that the 50-dma is very close to crossing under the 200-dma and this is normally seen as a very bad omen. Because ADBE has not yet broken its short-term up trend we are going to suggest a trigger to open the play. Our entry point to short the stock will be $28.99. Our initial target is the $26.25-26.00 range near its July lows but it's worth noting that the bearish P&F chart points to a $19.00 target.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 09/15/05 (unconfirmed)
Average Daily Volume: 6.8 million

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Biogen Idec - BIIB - close: 39.29 chg: -0.61 stop: 40.01

Company Description:
Biogen Idec creates new standards of care in oncology, neurology and immunology. As a global leader in the development, manufacturing, and commercialization of novel therapies, Biogen Idec transforms scientific discoveries into advances in human healthcare. (source: company press release or website)

Why We Like It:
This is a simple play. BIIB has been trading sideways in a wide range between $34.00 and $40.00 for the past few months. The stock just tested resistance again at the $40.00 level and failed to breakout. We want to short the stock near resistance and ride it back toward the bottom of its range. However, to confirm that BIIB has indeed turned again we are going to suggest a trigger to short the stock under the $38.00 level. More aggressive traders may want to consider positions now or under $39.00. Our entry point will be $37.99. Our target is the $35.00-34.50 range.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/26/05 (confirmed)
Average Daily Volume: 4.6 million
 

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