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New Plays
Long Plays
Short Plays
INTC PKG
MATK  

New Long Plays

Intel Corp. - INTC - close: 23.99 chg: +0.10 stop: 22.75

Company Description:
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. (source: company press release or website)

Why We Like It:
Intel has broken out from its three-month bearish trend. The breakout occurred on Thursday and now the stock is testing resistance at the $24.00 level. We believe this could be the beginning of a new up trend. Readers have a choice on where they want to go long. More patient traders can wait for a potential pull back toward the $23.50 level, which would be a more attractive entry point. If you're feeling a bit more cautious then wait for a move over the $24.00 mark or its simple 50-dma at 24.21. The simple 200-dma near $25.00 might offer overhead resistance but INTC can probably run into the $26.00-26.50 range by Christmas.

Picked on November 06 at $ 23.99
Change since picked: + 0.00
Earnings Date 10/18/05 (confirmed)
Average Daily Volume = 51.6 million

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Martek Biosciences - MATK - cls: 31.30 chg: -0.16 stop: 29.85

Company Description:
Martek Biosciences Corporation develops, manufactures and sells naturally produced products from microalgae and fungi. The Company's products include: (1) specialty, nutritional oils for infant formula that aid in the development of the eyes and central nervous system in newborns; (2) nutritional supplements and food ingredients that may play a beneficial role in promoting mental and cardiovascular health throughout life; and (3) powerful fluorescent markers for diagnostics, rapid miniaturized screening, and gene and protein detection. (source: company press release or website)

Why We Like It:
It looks like MATK has produced another bottom. Shares hit a low of $28.20 in October and have been consolidating sideways with an upward bias of higher lows ever since. MATK does have short-term resistance at the $32.00 level but technical oscillators are looking bullish. Point & Figure chart traders may want to pass on this play since the P&F chart is very bearish with a $5.00 target. We are going to suggest a trigger at $32.05 above overhead resistance. If triggered we'll target a rally to the $35.00 mark although more aggressive traders might want to target the 50-dma currently at $36.88.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 12/09/05 (unconfirmed)
Average Daily Volume: 864 thousand
 

New Short Plays

Packaging Corp. - PKG - close: 19.89 chg: -0.22 stop: 20.55

Company Description:
PCA is the sixth largest producer of containerboard and corrugated packaging products in the United States with sales of $1.9 billion in 2004. PCA operates four paper mills and 69 corrugated product plants in 28 states across the country. (source: company press release or website)

Why We Like It:
We like PKG as a bearish candidate because the earnings-inspired bounce is failing under resistance. The stock has a multi-month trendline of lower highs and technical resistance at its simple 100-dma. Its MACD indicator is nearing a new sell signal and its short-term oscillators have already turned bullish. Plus, its Point & Figure chart points south toward a $12.00 target. Looking at the intraday chart there is clear resistance at the $20.50 level. We are going to suggest shorts with PKG under the $20.00 level. We'll use a relatively tight stop at $20.55. Our target is the $18.50 mark.

Picked on November 06 at $19.89
Change since picked: + 0.00
Earnings Date 10/17/05 (confirmed)
Average Daily Volume: 470 thousand
 

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