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AEOS None
USAK  

New Long Plays

Amer.Eagle Outfitters - AEOS - cls: 34.77 chg: +1.00 stop: 32.99

Company Description:
American Eagle Outfitters is a leading retailer that designs, markets and sells its own brand of laidback, current clothing targeting 15 to 25 year-olds, providing high-quality merchandise at affordable prices. AE's original collection includes standards like jeans and graphic Ts as well as essentials like accessories, outerwear, footwear, basics and swimwear. American Eagle Outfitters currently operates 808 stores in 50 states, the District of Columbia and Puerto Rico, and 71 AE stores in Canada. (source: company press release or website)

Why We Like It:
AEOS is a relative strength play. The stock is trading near new all-time highs. Today's gain was fueled by better than expected June same-store sales numbers, which came in at +11%. The stock is really out performing its peers. The RLX retail index looks vulnerable to more selling, thanks in part to new weakness in Wal-Mart (WMT). We are going to suggest longs in AEOS with the stock above $34.00. More conservative traders might want to use a trigger over $35.00 since that level could be seen as psychological resistance. Our target is the $38.25-38.50 range. The P&F chart is more optimistic with a $63.00 target. We do not want to hold over the August earnings report. PLEASE note that we would NOT suggest opening new bullish positions if the market does not respond positively to the jobs report due out Friday morning!

Picked on July 06 at $34.77
Change since picked: + 0.00
Earnings Date 08/15/06 (unconfirmed)
Average Daily Volume: 2.2 million

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USA Truck - USAK - close: 19.35 chg: +0.63 stop: 18.99

Company Description:
USA Truck is a medium haul, dry van truckload carrier transporting general commodities throughout the continental United States and into and out of portions of Canada. We transport general commodities into Mexico by allowing through-trailer service on our trailers through our facility in the gateway city of Laredo, Texas. We also provide third-party logistics and freight brokerage services for a diverse customer base. (source: company press release or website)

Why We Like It:
It has been a pretty dismal 2006 for USAK so far. Yet it looks like the stock may have put in a significant bottom over the last six weeks. Short-term technicals have improved and the stock is flirting with a breakout over its 50-dma and resistance at the $20.00 level. If USAK can trade over $20.00 it would produce a new Point & Figure chart buy signal. If the market responds well to the jobs report out tomorrow then USAK might have enough gas to breakout. We're going to suggest a trigger to go long at $20.05. If triggered then our target will be the $22.00-22.50 range. We do not want to hold over the late July earnings report.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume: 140 thousand
 

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