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New Plays
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ADBE None
CELG  
LRCX  
NSC  

New Long Plays

Adobe Systems - ADBE - close: 30.40 chg: +0.34 stop: 29.49

Company Description:
Adobe revolutionizes how the world engages with ideas and information -- anytime, anywhere and through any medium. (source: company press release or website)

Why We Like It:
The GSO software index is looking a lot healthier after today's 2.2% gain and bullish breakout over the 155 level. We think ADBE might follow it higher. The stock's P&F chart is still bearish but it looks like ADBE has put in a significant bottom over the last few weeks. Our conservative target is the $32.00-32.50 range. More aggressive traders may want to aim higher near the 200-dma around $34.00. Our biggest concern is potential technical resistance at its descending 50-dma (currently 31.75).

Picked on June 29 at $30.40
Change since picked: + 0.00
Earnings Date 06/16/06 (confirmed)
Average Daily Volume: 7.1 million

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Celgene Corp. - CELG - close: 47.24 chg: +2.02 stop: 43.99

Company Description:
Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global pharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through gene and protein regulation. (source: company press release or website)

Why We Like It:
CELG has been out performing both the biotech and drug sector. Now with the market in rally mode the stock is hitting new all-time highs. The bounce from the $45.00 level looks like a new entry point to go long the stock. Our only real complaint here is that volume was not very strong on today's gain. The $50.00 level is probably the next level of resistance but we're going to aim for the $52.40-52.60 region. Readers should expect some give-and-take around the $50 mark. We're setting our initial stop loss at $43.99 but more conservative traders can probably get away with 44.49, which is under Wednesday's low. The Point & Figure chart shows a triple-top breakout buy signal with a $57 target. We do not want to hold over the late July earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 3.9 million

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Lam Research - LRCX - close: 46.82 chg: +1.67 stop: 44.25

Company Description:
Lam Research Corporation is a major provider of wafer fabrication equipment and services to the world's semiconductor industry. (source: company press release or website)

Why We Like It:
The SOX semiconductor index looks poised to breakout from its bearish channel. If that occurs then LRCX could be free to make another run at its May highs. Currently the stock is consolidating under resistance at the $47.00 level with what looks like a bullish or inverse head-and-shoulders pattern. Aggressive traders might want to open positions now with Thursday's bullish breakout over the 50-dma. We're going to suggest a trigger to go long the stock at $47.25. If triggered our target will be the $52.40-52.60 range. We do not want to hold over the July 19th earnings report.

Picked on June xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 3.1 million

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Norfolk Southern - NSC - close: 52.57 chg: +1.59 stop: 49.35

Company Description:
Norfolk Southern Corporation is one of the nation's premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 21,200 route miles in 22 states, the District of Columbia and Ontario, Canada. (source: company press release or website)

Why We Like It:
The transport stocks were a big part of today's rally. The Dow Transportation index added 3.3% and broke out over resistance at the 4800 level. Railroad stocks were leaders in the charge higher. Shares of NSC broke out over the top of its two-week trading range and technical resistance at its 100-dma. We are suggesting long positions with NSC above $51.00. More conservative traders may want to wait for a most past $52.75 just to make sure NSC clears the 50-dma. Our target is the $57.35-57.50 range. We do not want to hold over the July earnings report.

Picked on June 29 at $52.57
Change since picked: + 0.00
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 2.2 million
 

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