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New Plays
Long Plays
Short Plays
AKAMPTEN
UTX 

New Long Plays

Akamai Tech. - AKAM - close: 41.15 chg: +1.74 stop: 38.44

Company Description:
Akamai is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. (source: company press release or website)

Why We Like It:
We are not feeling exceptionally bullish on the market right now but AKAM seems to be marching to the beat of its own drummer. The stock's sideways consolidation over the past month has a bullish tilt to it. The MACD on the daily chart is nearing a new buy signal. The three-day candlestick pattern looks like a bullish reversal. Plus, the P&F chart is bullish with a $56 target. We are going to suggest a trigger to go long the stock at $42.05. If triggered our target is the $47.50-50.00 range. Looking at the weekly chart we don't see any significant resistance until about $50.00. Please note that AKAM is due to hold an analyst meeting this week on Wednesday, September 13th from 8:00 a.m. to 2:00 p.m. ET. Reaction to the meeting could produce volatility so protect yourself. We're setting our stop loss under last week's low.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/25/06 (unconfirmed)
Average Daily Volume: 3.8 million

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United Tech. - UTX - close: 63.34 chg: +0.57 stop: 61.99

Company Description:
United Technologies, based in Hartford, Conn., is a diversified company that provides high technology products and services to the building and aerospace industries. (source: company press release or website)

Why We Like It:
Dow-component UTX looks ready to produce a new leg higher. Early last week the stock broke out over significant four-month old resistance. During the market's weakness last week shares of UTX dipped back to retest broken resistance as new support near its 10-dma and 100-dma. Traders appeared to buy the bounce on Friday. We are not very optimistic for stocks during September and its historical pattern for equity weakness but UTX is somewhat defensive in nature and this looks like a lower-risk entry point. We're suggesting readers go long above $63.00 and target a rally to $66.00. More aggressive traders may want to aim higher. Be aware that some of UTX's management will be speaking at a conference on September 15th.

Picked on September 10 at $63.34
Change since picked: + 0.00
Earnings Date 10/17/06 (unconfirmed)
Average Daily Volume: 3.5 million
 

New Short Plays

Patterson-UTI - PTEN - cls: 25.28 change: -1.10 stop: 27.01

Company Description:
Patterson-UTI Energy, Inc. provides onshore contract drilling services to exploration and production companies in North America. The Company owns 403 land-based drilling rigs. (source: company press release or website)

Why We Like It:
Oil and oil service stocks are breaking down. The end of the summer driving season means lower demand. There aren't any significant or threatening storms in the Atlantic or Caribbean that might threaten our oil production in the Gulf. Plus, the verbal conflict between the U.S. and Iran has hit a lull (for the moment). Crude oil futures are breaking down and have broken various levels of support. We think there is more profit taking ahead. However, be aware that there is a significant risk with this and any bearish oil play. If there is any escalation between Iran and the west or any terrorist attack then oil prices will likely skyrocket higher and oil stocks with them. Since this play is based on shorting the stock our risk is technically infinite. A stop loss may not help much in a "fast" market. We like PTEN as a bearish candidate based on the breakdown from its trading range on Friday. Shares closed under support at $26.00 and the next level of support appears to be $22.50. We're suggesting positions under $26.00 and our target is the $22.75-22.50 range. The P&F chart points to a $20 target.

Picked on September 10 at $25.28
Change since picked: + 0.00
Earnings Date 11/02/06 (unconfirmed)
Average Daily Volume: 2.8 million
 

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