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New Plays
Long Plays
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  VOL
  WW

New Long Plays

None today.
 

New Short Plays

Coach Inc. - COH - close: 26.43 change: -0.95 stop: 28.55

Company Description:
Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, sunwear, and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalog in the U.S. (source: company press release or website)

Why We Like It:
Investors were already concerned about a potential slow down in the consumer so Friday's news that the June retail sales came in below expectations did not help matters. Record high oil prices don't help either since rising fuel prices at the pump are a definite drag on consumer spending. The RLX retail index lost another 1.1%. Shares of COH, a high-end, luxury goods provider, suffered a 3.4% loss on Friday. COH recently broke down from its $27.50-30.00 trading range and now its MACD is in a new sell signal. Plus, the P&F chart points to a $16 target. We are suggesting shorts here at $26.43 but there is a pretty good chance that COH might produce an oversold bounce back toward the $27.00-27.50 region. Patient traders might want to wait for a bounce before considering new shorts. We do want to offer one word of caution. The RLX retail index looks oversold and could be ready to bounce from significant support near the 420 level. Our target for COH is the $22.75-22.25 range. We do not want to hold over the early August earnings report.

Picked on July 16 at $26.43
Change since picked: + 0.00
Earnings Date 08/01/06 (confirmed)
Average Daily Volume: 4.1 million

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Volt Info Sci. - VOL - close: 45.75 chg: -1.09 stop: 46.51

Company Description:
Volt Information Sciences, Inc. is a leading provider of Staffing Services and Telecommunications and Information Solutions, for its FORTUNE 100 customer base. Operating through a worldwide network of over 300 branch offices, Staffing Services fulfills the IT and other temporary and permanent placement requirements of its customers. (source: company press release or website)

Why We Like It:
VOL is an aggressive, speculative short play. The stock has risen 50% in the last six weeks following its June 8th earnings report. Recent trading action suggests the upward momentum is fading so we suspect the stock could see some profit taking soon. We're going to suggest a trigger to short the stock at $44.45. If triggered our target will be the $40.10-40.00 range. The most recent data puts short interest at 4.4% of VOL's 8.1 million-share float but this data is probably out of date. Thus we're labeling this high-risk since there is probably a greater chance of a short squeeze, especially if the market produces a strong rally. FYI: Traders should be aware that MAN, a rival in this sector, is due to report earnings on July 19th. A big up or down surprise in MAN could have a big influence on VOL.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 06/08/06 (confirmed)
Average Daily Volume: 256 thousand

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Watson Wyatt Wld - WW - close: 33.19 chg: -0.52 stop: 34.55

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. (source: company press release or website)

Why We Like It:
WW broke its eight-month bullish trend in June and now shares are breaking down under support at the $33.50 level and its simple 100-dma. The technical picture is bearish. We are suggesting short positions with WW under the $34.00 level. Our target is the $31.10-31.00 range, which is above potential support at its rising 200-dma. We do not want to hold over the early August earnings report. FYI: the most recent data put short interest at 6.9% of WW's 41 million-share float.

Picked on July 16 at $33.19
Change since picked: + 0.00
Earnings Date 08/08/06 (unconfirmed)
Average Daily Volume: 216 thousand
 

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