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MCK None
STLD  

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Mckesson - MCK - close: 46.47 chg: +0.25 stop: 44.85

Company Description:
McKesson Corporation, currently ranked 15th on the Fortune 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. Over the course of its 170-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. (source: company press release or website)

Why We Like It:
Shares of MCK displayed a lot of momentum over the summer. Now after a four-week consolidation and what looks like a new base of support near the $45.00 level MCK looks poised to move higher again. Friday's gain helped confirm Thursday's breakout back above its simple 50-dma. We also like how MCK has seen a lot of volume over the last few days and not just Friday. Short-term technical oscillators have turned positive again and its MACD is nearing a new buy signal. The P&F chart is very bullish with a $72 target. We want to suggest longs here over $46.00 and target a move into the $49.75-50.00 range. However, we are aware that we're moving into a very weak seasonal period during the last two weeks of September. If MCK doesn't confirm the move higher with a push past the $47 level soon we'll quickly bail out.

Picked on September 18 at $46.47
Change since picked: + 0.00
Earnings Date 10/20/05 (unconfirmed)
Average Daily Volume: 1.5 million

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Steel Dynamics - STLD - close: 33.91 chg: +1.42 stop: 31.49

Company Description:
Steel Dynamics is a profitable, young and growing Midwest producer of carbon steel products. We produce a broad array of high-quality flat-rolled, structural and bar steels at our three Indiana steel mini-mills and steel-processing operations. (source: company press release or website)

Why We Like It:
STLD is another bullish candidate that traders can evaluate as a play on the Katrina rebuilding process. The company produces a number of various products that will be needed as construction begins for the battered region. Technically we like the bounce from support near $30.00 and Friday's bullish breakout over resistance at its simple 200-dma. We also like how the P&F chart shows a similar rebound from support and points to a $54 target. We are going to suggest bullish positions anywhere above $33.00. We do expect some resistance near $35.30 but our target is the $37.50 mark in the next four weeks.

Picked on September 18 at $33.91
Change since picked: + 0.00
Earnings Date 10/18/05 (unconfirmed)
Average Daily Volume: 1.2 million
 

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