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CAE None
ROST  

New Long Plays

Cascade - CAE - close: 55.44 change: +0.80 stop: 52.95

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:
We are going to try again with CAE. Twice we have added CAE to the play list with a suggested trigger to go long the stock on a breakout over resistance and shares never broke out. This time we have seen the consolidation narrow and then begin to drift higher as buyers slowly gobbled up supply. Now it finally looks like CAE is poised to breakout again. We are suggesting a trigger to go long the stock at $55.75, which is above resistance at the $55.50 level. If triggered our target is the $59.75-60.00 range. One of the risks here is that CAE might breakout on an intraday basis, hit our trigger, and then see the rail fail. If that occurs and shares close back under $55.00 we'll probably exit early! We are setting the stop loss under the 50-dma. FYI: The P&F chart already points to a $70 target and a trade over $56.00 would produce a quintuple-top breakout buy signal.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/08/07 (unconfirmed)
Average Daily Volume: 91 thousand

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Ross Stores - ROST - close: 33.40 change: +0.60 stop: 31.45

Company Description:
Ross Stores, Inc., a Fortune 500 and Nasdaq 100 (ROST) company headquartered in Pleasanton, California, is the nation's second largest off- price company with fiscal 2005 revenues of $4.9 billion. (source: company press release or website)

Why We Like It:
Retail stocks ignored a rally in crude oil and the RLX retail index set a new all-time closing high today. Contributing to the rally was ROST, which rose 1.8% and broke out over short-term resistance at the $33.00 level. Shares produced a major bullish breakout on its Point & Figure chart a few weeks ago with the rally past the $31-32 zone. Now that ROST has spent the last few weeks digesting that initial breakout from January the stock looks rested and ready to go. Aggressive traders may want to buy the stock here. We want to see a new high first to reduce the risk that ROST is creating a potential bearish double top pattern. The January 2007 high was $33.63. We will suggest a trigger to buy the stock at $33.75. If triggered our target is the $36.50-37.00 range. FYI: The P&F chart points to a $54 target. We did not see any specific news following ROST's presentation at the Citigroup retail conference yesterday.

Picked on February xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 03/13/07 (unconfirmed)
Average Daily Volume: 1.2 million
 

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