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SBUX None
WW  

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Starbucks - SBUX - close: 36.79 chg: +0.92 stop: 34.98

Company Description:
Through the dedication of our passionate partners (employees), Starbucks Coffee Company has transformed the way people in 37 countries enjoy their coffee, one cup at a time. Starbucks is the premier purveyor of the finest coffee in the world, with more than 11,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. (source: company press release or website)

Why We Like It:
We are going to switch directions with SBUX. Recently we tried to play the breakdown under technical support at its 100-dma and it did not pan out for us. Now the stock is breaking out higher from its sideways consolidation. Volume was not very impressive today as the stock hit a new three-week high. We want to see some confirmation. We are suggesting a trigger to go long the stock at $37.05. If triggered we'll target a rally into the $39.95-40.00 range. We are beginning the play with a wide (aggressive) stop loss at $34.98. This feels a little aggressive given some of the bearish trendlines on the chart below. Please note that we would be extra careful about considering new bullish positions right now. Yes the markets are bouncing but stocks were very oversold and due for a bounce. The major indices remain inside their intermediate bearish trends and the market bounce could be nothing more than a correction on the way lower.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/02/06 (unconfirmed)
Average Daily Volume: 6.0 million

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Watson Wyatt - WW - close: 34.71 chg: +0.57 stop: 33.80

Company Description:
Watson Wyatt is a leading global human capital and financial management consulting firm. The firm specializes in employee benefits, human capital strategies, technology solutions, investment consulting, and insurance and financial services. Watson Wyatt has 6,000 associates in 30 countries. (source: company press release or website)

Why We Like It:
We like WW as a bullish candidate because in spite of all the market weakness this past month the stock has not yet broken its long-term rising channel. Shares are bouncing from support near $34.00 and its rising 50-dma. We're going to put a stop loss under Wednesday's low and target the top of its channel (see chart) in the $37.95-38.00 range. More conservative traders may want to wait for a move past $35.00 before going long.

Picked on June 15 at $34.71
Change since picked: + 0.00
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume: 183 thousand
 

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