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IMKTA None
XTO  

New Long Plays

Ingles Markets - IMKTA - close: 25.66 chg: +0.34 stop: 23.95

Company Description:
Ingles Markets, Incorporated is a leading supermarket chain with operations in six southeastern states. Headquartered in Asheville, North Carolina, the Company operates 197 supermarkets. In conjunction with its supermarket operations, the Company also operates 71 neighborhood shopping centers, all but 16 of which contain an Ingles supermarket. (source: company press release or website)

Why We Like It:
IMKTA has suffered almost an entire year of declines but it looks like it's finally turning around. The action in the stock price over the last few weeks and this past week's rally has produced a bullish breakout over its long-term trendline of resistance. Some of the daily and weekly technical indicators are turning higher from oversold conditions. After months and months of declines there is still plenty of overhead resistance, plus the P&F chart is still bearish with a $16 target. However, now that IMKTA has broken resistance the stock could see more short covering. The most recent data puts short interest at 5.8% of the stock's very small 11 million-share float. We're suggesting long positions now although more conservative traders could wait for a dip back toward $25.00-24.75. Our target is the $27.75-28.00 range. More aggressive traders could aim higher. FYI: Normally we do not play stocks with an average daily volume of less than 250,000 shares so we're tempted to label this play as aggressive.

Picked on December 23 at $25.66
Change since picked: + 0.00
Earnings Date 12/03/07 (confirmed)
Average Daily Volume: 81 thousand

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XTO Energy - XTO - close: 53.28 chg: +0.92 stop: 51.79

Company Description:
XTO Energy Inc. is a domestic natural gas producer engaged in the acquisition, exploitation and development of quality, long-lived oil and natural gas properties in the United States. Its properties are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah, Louisiana, Mississippi and Montana. (source: company press release or website)

Why We Like It:
We see a lot of bullish candidates in the oil and oil-related sectors. Crude oil futures were breaking out on Friday after a two-week consolidation. This could lift the sector into a new leg higher. The OIX oil index is already hitting new all-time highs. Shares of XTO happen to be near their all-time highs. Aggressive traders may want to go long now following Friday's breakout from its $51-53 trading range. We would wait. The stock has clear resistance at $54.00. If XTO can breakout over $54.00 it would produce a new buy signal on the Point & Figure chart. Speaking of the P&F chart XTO has a habit of producing a sell signal and then reversing higher. The P&F chart currently sports a sell signal and it looks poised to reverse higher again. We're suggesting a trigger to buy the stock at $54.15. If triggered our target is the $59.00-60.00 range.

Picked on December xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 02/23/08 (unconfirmed)
Average Daily Volume: 4.1 million
 

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