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New Plays
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CLDN None
THO  
VRSN  

New Long Plays

Celadon Group - CLDN - close: 19.44 change: +0.66 stop: 17.99

Company Description:
Founded in 1985, Celadon Group Inc. is a truckload carrier headquartered in Indianapolis that operates in the U.S., Canada and Mexico. (source: company press release or website)

Why We Like It:
The Dow Jones Transportation index rallied over 1.1% on Friday and looks poised to rise toward resistance at the 4800 level. Strength in trucking stocks is adding fuel to the sector's rise. Shares of CLDN out performed its peers with s 3.5% bounce on Friday. Volume came in below average so we're a little bit cautious. The technical picture is definitely improving and the P&F chart is optimistic with a $31 target. We are suggesting long positions with CLDN over $19.00. More conservative traders may want to wait for a rise past last week's high at $20.12 before initiating plays. Our target is the $22.00 level. Plan for some resistance at $21.00 at least on the initial test. Conservative traders might want to consider a tighter stop loss (maybe near $18.50).

Picked on November 12 at $19.44
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume: 305 thousand

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Thor Industries. - THO - close: 43.85 change: +1.68 stop: 41.99

Company Description:
Thor Industries, Inc. is the largest manufacturer of recreation vehicles and a major builder of commercial buses. (source: company press release or website)

Why We Like It:
The mid October reversal was very bearish but it looks like bulls are putting up a defense for THO at the $42 level. The stock has bounced there twice in the last two weeks. Short-term technicals are starting to improve. If THO can breakout over $44 again it might be an entry point to go long. We're suggesting a trigger to open plays at $44.25, which would clear last week's high. If triggered then our target is the $47.85-48.00 level near the October peak.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/28/06 (unconfirmed)
Average Daily Volume: 624 thousand

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VeriSign - VRSN - close: 22.01 change: +0.53 stop: 20.99

Company Description:
VeriSign, Inc. operates intelligent infrastructure services that enable and protect billions of interactions every day across the world's voice and data networks. (source: company press release or website)

Why We Like It:
VRSN displayed some relative strength on Friday with a 2.4% gain on above average volume to breakout over its 200-dma. The stock has been slowly consolidating for the past six weeks. Friday's rally places the stock in position to breakout over resistance at $22.30. We're suggesting a trigger to go long the stock at $22.51. If triggered our target is the $24.90-25.00 range. We suggest keep an eye on the GSO software index. The GSO is challenging resistance and if it fails to breakout higher the sector index will produce a bearish double-top pattern. Naturally a bearish pattern in the sector index tends to be bad news for VRSN.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (confirmed)
Average Daily Volume: 2.9 million
 

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