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  CNX
  FD

New Long Plays

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New Short Plays

Agilent Tech. - A - close: 30.72 chg: -0.72 stop: 32.55

Company Description:
Agilent Technologies Inc. is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. (source: company press release or website)

Why We Like It:
The recent market weakness has been a strong enough catalyst for A to breakdown from a bearish head-and-shoulders pattern. The Thursday-Friday decline pushed shares under the simple 200-dma and what appears to be the neckline (support) for the H&S pattern. We're suggesting shorts right now. Traders have a choice to either watch for an oversold bounce and failed rally under $32.00 or wait for a new decline under potential support near $30.00. The H&S pattern projects a $26.50 target. We are aiming for the $28.50-27.50 range since A might have additional support near its September 2006 lows around $28.50. The P&F chart points to a $14 target. There doesn't not appear to be any significant amount of short interest in the stock.

Picked on March 04 at $30.72
Change since picked: + 0.00
Earnings Date 05/17/07 (unconfirmed)
Average Daily Volume: 2.6 million

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Cons Energy - CNX - close: 34.98 chg: -0.73 stop: 36.86

Company Description:
CONSOL Energy Inc., a high-Btu bituminous coal and coal bed methane company, is a member of the Standard & Poor's 500 Equity Index and has annual revenues of $3.7 billion. It has 15 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.3 billion tons. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane gas, CNX Gas Corporation. (source: company press release or website)

Why We Like It:
It seems like coal stocks should be great long-term performers given the earth's rapidly depleting stores of crude oil. Yet the sector seems to be struggling thanks to high-level of inventories. That might change if the world starts building more cleaner-burning coal plants. Short-term it looks like CNX has peaked under resistance near the $38.00 level. Aggressive traders may want to consider shorts now following the Thursday and Friday failed rallies under the simple 10-dma. We want to see a breakdown under short-term support at the $34.00 level first. We are suggesting a trigger to short the stock at $33.95. More conservative traders may want to wait for a decline under the 50-dma near $33.75. If we are triggered at $33.95 our target is the $30.50-30.00 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/26/07 (unconfirmed)
Average Daily Volume: 2.4 million

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Federated Dept. - FD - close: 44.25 chg: -0.04 stop: 45.05

Company Description:
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales of $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. (source: company press release or website)

Why We Like It:
We are surprised that FD did not sell-off more following its recent earnings report given its lackluster guidance. The stock has turned in a strong rally from its January 2007 lows but the momentum has come to a dead stop near its October 2006 highs. We suspect that given this market environment the next move will be down. However, nothing is guaranteed and FD has shown some relative strength the last couple of days by not selling off (much). Aggressive traders may want to consider positions now. We are suggesting a trigger to open plays at $43.43. If triggered our target is the $40.50-40.00 range.

Picked on March xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/29/07 (unconfirmed)
Average Daily Volume: 6.3 million
 

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