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New Plays
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CCL None
STJ  

New Long Plays

Carnival Corp. - CCL - close: 40.76 chg: +0.95 stop: 39.75

Company Description:
Carnival Cruise Lines is a proud member of the exclusive World's Leading Cruise Lines. (source: company press release or website)

Why We Like It:
It has been a very rough year for Carnival Cruises. The stock has fallen from over $55 to its June low near $37. The stock's initial oversold bounce in June stalled near $42.00 and its descending 50-dma. Yet now CCL has produced a new higher low and today's gain is a technical breakout above its 50-dma. Short-term technicals are bullish but its P&F chart is still very bearish. We suspect that if the market continues to bounce that CCL could rally toward the $44.00-45.00 range. We're suggesting long positions with the stock above $40.00. More conservative traders may want to wait for a move above Tuesday's high (41.06) before initiating plays.

Picked on July 25 at $40.76
Change since picked: + 0.00
Earnings Date 09/15/06 (unconfirmed)
Average Daily Volume: 4.3 million

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St. Jude Medical - STJ - close: 35.94 change: +2.54 stop: 32.99

Company Description:
St. Jude Medical is dedicated to making life better for cardiac, neurological and chronic pain patients worldwide through excellence in medical device technology and services. The Company has five major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiac surgery, cardiology and neuromodulation. Headquartered in St. Paul, Minn., St. Jude Medical employs approximately 10,000 people worldwide. (source: company press release or website)

Why We Like It:
Normally we would not chase a big move like today's 7.6% gain in shares of STJ. However, we like STJ as a bullish candidate based on the strength of the stock's breakout today. Shares rallied through technical resistance at its 50-dma and past historical resistance in the $35.00-35.30 region. volume on the move was more than double the daily average. Actually the medical equipment sector saw a lot of strength today. Today's rally in STJ also produced a new triple-top breakout buy signal on the Point & Figure chart so it now has a new $45 bullish price target. We are suggesting long positions with STJ above $35.00 but more patient traders might want to wait and see if the stock pulls back. A dip into the $35.40-35.00 range would be an attractive entry point. Chart readers will also note that STJ has potential resistance at its 100-dma currently at 37.25. Our target is the $39.00-40.00 range. Our time frame is about four to six weeks.

Picked on July 25 at $35.94
Change since picked: + 0.00
Earnings Date 07/19/06 (confirmed)
Average Daily Volume: 3.8 million
 

New Short Plays

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