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New Plays
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ADM None
GMRK  
SBUX  
TGT  

New Long Plays

Archer Daniels Midland - ADM - cls: 38.55 chg: +1.24 stop: 36.95

Company Description:
Archer Daniels Midland Company (ADM) is the world leader in BioEnergy and has a premier position in the agricultural processing value chain. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is a leading manufacturer of biodiesel, ethanol, soybean oil and meal, corn sweeteners, flour and other value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 240 processing plants and net sales for the fiscal year ended June 30, 2006 of $37 billion. (source: company press release or website)

Why We Like It:
Ethanol producer ADM looks ready for another leg higher. Shares are actually up five weeks in a row but they look rested after last week's sideways consolidation. Friday's rebound (+3.3%) followed a bounce from support near $37.00. The Point & Figure chart looks bullish with a triple-top breakout buy signal forecasting a $49 target. We are suggesting long positions following Friday's rally. There is some resistance near $40 but our target is the $42.00-42.50 range. We don't have much time. Our plan is to exit on Monday, April 30th to avoid holding over earnings on May 1st. FYI: Our target is a little optimistic given the time frame and more conservative traders may want to exit near $40.00.

Picked on April 22 at $38.55
Change since picked: + 0.00
Earnings Date 05/01/07 (unconfirmed)
Average Daily Volume: 8.7 million

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GulMark Offshore - GMRK - cls: 47.25 chg: +1.05 stop: 45.45

Company Description:
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty (60) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas. (source: company press release or website)

Why We Like It:
GMRK looks very overbought if you glance at the weekly chart. Yet if you look at the daily chart you can see that shares are still trading inside the rising channel and Friday's bounce looks like a new entry point for the bulls. We want to catch the next leg higher before GMRK reports earnings in early May. We'll try and protect ourselves with a tight stop under Thursday's low at $45.45. More aggressive traders may want to put their stop under $45.00. Our short-term target is the $49.90-50.00 range. If we don't see any confirmation of the bounce early next week we'll probably exit early.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/03/07 (unconfirmed)
Average Daily Volume: 211 thousand

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Starbucks Corp. - SBUX - cls: 31.66 chg: +0.88 stop: 30.39

Company Description:
Starbucks Coffee Company provides an uplifting experience that enriches people's lives one moment, one human being, one extraordinary cup of coffee at a time. (source: company press release or website)

Why We Like It:
Friday's widespread market rally was enough to push SBUX through significant resistance (see chart) and its simple 50-dma. Volume on the breakout was almost double the daily average, which is bullish. More conservative traders may want to wait for a rally past the $32.00 level. We're suggesting positions now in the $31.00-32.00 range. We'll put our stop under Thursday's low at 30.39. More aggressive traders might want to use a stop under $30.00. Our target is the $35.00-36.00 range but we need to exit ahead of the May 3rd earnings report.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/03/07 (confirmed)
Average Daily Volume: 10.5 million

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Target - TGT - cls: 62.12 chg: +0.86 stop: 59.89

Company Description:
Target Corporation's operations include large, general merchandise discount stores and a fully integrated on-line business through which we offer a fun and convenient shopping experience with thousands of highly differentiated and affordably priced items. The company currently operates 1,502 Target stores in 47 states. (source: company press release or website)

Why We Like It:
The market's rally on Friday also sparked a technical (bullish) breakout in TGT. Shares powered through the trendline of lower highs and its 50-dma. If TGT can trade over $63.00 it will reverse the P&F chart into a new buy signal. We're suggesting long positions with TGT above the 50-dma (61.15). We'll list a conservative target at $64.75 and an aggressive target at $67.50. The $65.00 level looks like short-term resistance.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/29/07 (unconfirmed)
Average Daily Volume: 4.2 million
 

New Short Plays

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