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  CTXS

New Long Plays

None today.
 

New Short Plays

Gognos - COGN - close: 40.19 chg: -1.65 stop: 42.31

Company Description:
Cognos, the world leader in business intelligence and performance management solutions, provides world-class enterprise planning and BI software and services to help companies plan, understand and manage financial and operational performance. (source: company press release or website)

Why We Like It:
Software provider COGN recently announced earnings on Wednesday night and beat analysts' estimates by 5 cents a share. Yet traders sold the news in spite of a crowd of analyst firms reiterating their positive ratings on the stock. It would appear that COGN's bullish trend is in jeopardy. The daily chart's technicals are turning bearish and the weekly chart's technical indicators aren't looking very healthy either. We are suggesting shorts on a breakdown below COGN's trendline of support near its rising 50-dma. Our suggested entry point is $39.60. If triggered our target is the $35.50-35.00 range. We want to warn readers to keep an eye on the rising 100-dma near $36.30, which might offer some support. We would also keep an eye on the GSO software index, which has seen its bullish momentum fade.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 12/20/06 (confirmed)
Average Daily Volume: 2.0 million

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Citrix Sys. - CTXS - close: 27.95 change: -0.23 stop: 28.43

Company Description:
Citrix Systems, Inc. is the global leader and the most trusted name in application delivery infrastructure. More than 180,000 organizations worldwide rely on Citrix to deliver any application to users anywhere with the best performance, highest security and lowest cost. (source: company press release or website)

Why We Like It:
CTXS is another technology stock that looks poised to move lower. Shares have been consolidating above significant support at $27.50 for weeks now. Technicals are turning bearish again and the stock has arguably produced a bearish head-and-shoulders pattern over the last couple of months. The P&F chart currently points to a $18 target. We are suggesting a trigger to short the stock at $27.45. If triggered our short-term target is $25.10-25.00. More aggressive traders may want to aim lower.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/27/07 (unconfirmed)
Average Daily Volume: 3.8 million
 

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