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New Plays
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CRM None
DSX  

Play Editor's Note: Hopefully by now you have read the wrap for this weekend's newsletter. Jim is concerned that we will see a "sell the news" reaction to the FOMC decision on interest rates this Tuesday. He makes a valid argument but I didn't find a lot of bearish candidates this weekend and we can only trade what we see not what we expect. Furthermore the market is likely to trade sideways for the next day and a half as we wait for the Fed's decision on Tuesday afternoon. Readers may be better off just waiting until after the Fed meeting and waiting until after the knee-jerk reaction to the news occurs before initiating any new positions. I am adding some bullish candidates but want to reiterate that readers should consider waiting until after the Fed meeting before placing any new bets.


New Long Plays

Salesforece.com - CRM - close: 57.84 change: +1.30 stop: 54.95

Company Description:
Salesforce.com is the market and technology leader in on-demand business services. The company's Salesforce suite of on-demand CRM applications allows customers to manage and share all of their sales, support, marketing and partner information on-demand. (source: company press release or website)

Why We Like It:
CRM displayed relative strength on Friday with a bullish breakout over resistance near $58.00 and a new all-time high at $59.15. The stock has been consolidating for almost two months and building up a head of steam for a bullish breakout for weeks. It would be tempting to buy Friday's move now. However, we're cautious on the market so we want to see more of a confirmation. We're suggesting a trigger to buy CRM at $59.25. More conservative traders may want to wait for a rally over $60.00. Nimble traders could try buying a dip near $55.00 if the opportunity presents itself. The Point & Figure chart is bullish with a $74 target. Our target is the $64.00-65.00 range.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume: 1.7 million

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Diana Shipping - DSX - close: 34.65 change: +1.60 stop: 31.75

Company Description:
Diana Shipping Inc. is a global provider of shipping transportation services. The Company specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes. (source: company press release or website)

Why We Like It:
The dry-shipping/water transport stocks tend to march to the beat of their own drum and have been rising for months. The group hit some heavy profit taking in November but now we're seeing investors buy the dip. Friday's rally in DSX pushed the stock above its 50-dma. We're suggesting readers buy the rally now but please note the sector can see some volatile swings and we would consider this an aggressive, higher-risk play. If you're patient then consider waiting for a dip back toward the 10-dma near $32.30. If you want more relative strength then wait for a rally over $35.50. Our target is the $39.50-40.00 range. The P&F chart is still bearish but looks like it's building for a bullish breakout.

Picked on December 09 at $34.65
Change since picked: + 0.00
Earnings Date 02/21/08 (unconfirmed)
Average Daily Volume: 3.5 million
 

New Short Plays

None today.
 

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