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New Plays
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CAE None
MEDI  
SINA  

New Long Plays

Cascade - CAE - close: 54.60 change: +1.43 stop: 53.49

Company Description:
Cascade Corporation, headquartered in Fairview, Oregon, is a leading international manufacturer of materials handling products used primarily on lift trucks. (source: company press release or website)

Why We Like It:
The consolidation in CAE may be nearing its end. Shares have bounced three times now at the $52.00 level and the three-day candlestick pattern looks very similar to a bullish reversal pattern. We normally try to avoid playing stocks with average daily volume under 200,000 shares and due to CAE's low volume some traders may not want to play it. We want to catch a bullish breakout over resistance at $55.50. Therefore we're suggesting a trigger to go long the stock at $55.65. If triggered our target is the $59.65-60.00 range. Currently the P&F chart is bullish with a $70 target but if shares trade over $56 it will produce a new quadruple top breakout buy signal.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/08/07 (unconfirmed)
Average Daily Volume: 66 thousand

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MedImmune - MEDI - close: 33.52 change: +0.52 stop: 31.90

Company Description:
MedImmune strives to provide better medicines to patients, new medical options for physicians, rewarding careers to employees, and increased value to shareholders. Dedicated to advancing science and medicine to help people live better lives, the company is focused on the areas of infectious diseases, cancer and inflammatory diseases. With more than 2,500 employees worldwide, MedImmune is headquartered in Maryland. (source: company press release or website)

Why We Like It:
The rally in biotech stocks were part of the tech-led rally in the NASDAQ. The biotech sector was boosted after two major stocks in the group were upgraded this morning. Shares of MEDI were not upgraded but still managed a 1.5% gain on above average volume. The daily chart's MACD indicator has produced a new buy signal. More aggressive traders may want to consider longs right here. We would rather wait for a breakout through resistance at the top of its trading range near $33.70. Our suggested entry point to go long the stock is at $33.80. If triggered our target is the $36.50-37.00 level. We do not want to hold over the early February earnings report.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/01/07 (unconfirmed)
Average Daily Volume: 2.3 million

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Sina Corp. - SINA - close: 31.06 change: +1.19 stop: 28.95

Company Description:
SINA Corporation is a leading online media company and value-added information service (VAS) provider for China and for global Chinese communities. (source: company press release or website)

Why We Like It:
Chinese Internet stocks have staged a two-day rally. Volume has also picked up with SINA's volume coming in at more than three times the daily average today. Today's rally pushed SINA through resistance at the $30.00 level and helped the MACD produce a new buy signal on the daily chart. We normally do not like to chase a big move so we're labeling this an aggressive, higher-risk play. We would consider positions now but our preferred entry point would be on a dip back toward $30.50 or near the $30.00 level. Broken resistance in the $29.50-30.00 range should now act as short-term support. Our target is the $34.50-35.00 range. The P&F chart has just broken through resistance and now points to a $52 target. It might be worth noting that the latest (December) data put short interest at just over 9% of SINA's 37.5 million-share float. That could be enough to substantially raise the risk of a short squeeze, which is good news if you're long the stock. We do not want to hold over the early February earnings report.


   
Picked on January 04 at $31.06
Change since picked: + 0.00
Earnings Date 02/08/07 (unconfirmed)
Average Daily Volume: 749 thousand
 

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