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AU NURO

New Long Plays

Anglogold - AU - close: 44.81 change: +1.48 stop: 41.95

Company Description:
In April 2004, AngloGold Limited and Ashanti Goldfields Limited merged to form AngloGold Ashanti Limited, a global gold company with 20 operations on four continents, a substantial project pipeline and an extensive, worldwide exploration program. The new company is listed on the New York, Johannesburg, Ghanaian, London and Australian stock exchanges, as well as the Paris and Brussels bourses. (source: company press release or website)

Why We Like It:
Gold stocks are on the move now that the commodity is hitting 20-year highs over $500 an ounce. Boosting the group today were some upgrades and AU added 3.4% after being upgraded to a sector perform. Volume came in above average on today's gain, which pushed AU above recent resistance near $44.50. We think the stock could make a run for its all-time highs near $50.00 over the next several weeks. The point & figure chart for AU shows a new spread triple-top breakout buy signal with a $58 target. We're going to suggest long positions with AU over $44.00 but more conservative traders may want to wait for more confirmation with a move over today's high (45.22). Our target will be the $49.50-50.00 range. We'll put our stop under last week's low at $41.95.

Picked on December 06 at $44.81
Change since picked: + 0.00
Earnings Date 01/27/06 (unconfirmed)
Average Daily Volume: 904 thousand
 

New Short Plays

NeuroMetrix - NURO - close: 29.59 chg: -1.38 stop: 34.01

Company Description:
NeuroMetrix is a medical device company establishing a new standard of care through the design, development and sale of proprietary products used to diagnose neuropathies. Neuropathies are diseases of the peripheral nerves and parts of the spine that frequently are caused by or associated with diabetes, low back and leg pain and carpal tunnel syndrome, as well as other clinical disorders. These clinical indications affect millions of patients in the United States. The NC-stat System, the Company's neuropathy diagnostic system, has been on the market since May 1999 and is presently used in nearly 3,000 physician's offices, clinics and other health care facilities in the United States. The Company holds issued utility patents covering a number of important aspects of the NC-stat System. (source: company press release or website)

Why We Like It:
It looks like the bull run in NURO may be over. On a technical basis the stock produced a double-top pattern with the peak in October and November. Following the second peak shares broke down below tested technical support at the 50-dma. The breakdown was sparked by news that NURO handed over 800,000 shares to its largest venture capitalist backer, who could immediately sell their shares (source:AP). FYI: NURO has about 12.1 million shares outstanding and trades on average 210K shares a day. The oversold bounce from last month's breakdown has already failed at the $32 level and today's decline was fueled by strong volume and left NURO under round-number support at the $30 level and technical support at the 100-dma. The P&F chart looks very bearish as well and points to a $20.00 target. We are going to suggest shorts with NURO under $30.00 and target a decline into the $22.75-22.00 range above its simple 200-dma. We do not want to hold over the late January earnings report. Should NURO surprise us with a bounce then aggressive traders might want to consider shorting a failed rally under the 10-dma.

Picked on December 06 at $29.59
Change since picked: + 0.00
Earnings Date 01/27/06 (unconfirmed)
Average Daily Volume: 210 thousand
 

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