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New Plays
Long Plays
Short Plays
CY GLW
  ZOLL

Play Editor's Note: We cautioned readers last week that our market bias was bearish for this week. So far stocks haven't disappointed us. Now after a 55-point drop in the S&P 500 and five straight days of losses in the Russell 2000 I would look for an oversold bounce. Unfortunately, tomorrow's jobs report is a wild card. Market direction tomorrow will depend on how investors choose to interpret the jobs data.


New Long Plays

Cypress Semi - CY - close: 36.02 change: +0.95 stop: 33.99

Company Description:
Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. (source: company press release or website)

Why We Like It:
We have been hearing positive press about CY for weeks, probably months. Now after a multi-day consolidation lower the stock is bouncing from round-number support near $35 and technical support at its rising 50-dma. This looks like a new bullish entry point. We're suggesting a stop just under support at $34.00. Our target is the $39.75-40.00 range. More conservative traders may want to exit near the December highs at $38.75. FYI: It doesn't say it in the company description but CY is getting a lot of interest because of its exposure to the solar energy industry.

Picked on January 03 at $36.02
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume: 5.6 million
 

New Short Plays

Corning Inc. - GLW - cls: 23.21 change: -0.16 stop: 24.21

Company Description:
Corning Incorporated is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. (source: company press release or website)

Why We Like It:
The trading in GLW is bearish. The stock has a six-month trend of lower highs and lower lows. Plus, in the last two days the stock has broken its six-week trend of higher lows. Readers can choose to short the stock here but we are suggesting two alternative entry points. Odds look good for a bounce tomorrow in the market. Therefore we are suggesting that readers short GLW on a bounce at $23.75. If the stock does not bounce then our alternate entry point will be a breakdown under $23.00 with a trigger at $22.95. Our target is the $21.25-21.00 range. We do not want to hold over the late January earnings report. FYI: The P&F chart is bearish with a $15.00 target. There was virtually zero short interest listed for GLW.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume: 11.7 million

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Zoll Medical - ZOLL - close: 25.86 chg: -0.44 stop: 27.01

Company Description:
ZOLL Medical Corporation is committed to developing technologies that help advance the practice of resuscitation. With products for pacing, defibrillation, circulation, ventilation, and fluid resuscitation, ZOLL provides a comprehensive set of technologies that help clinicians, EMS professionals, and lay rescuers resuscitate sudden cardiac arrest or trauma victims. (source: company press release or website)

Why We Like It:
Shares of ZOLL have been stuck in a wide $22.00-27.00 trading range for months. Last month in December the stock rallied almost non-stop from bottom of the range to the top. Not only should the stock be running out of momentum but it failed three times at resistance near $27.00. We're suggesting shorts here. We'll suggest taking profits at $24.10 and then again at $22.25. FYI: The P&F chart is bearish with a $17 target. The most recent short interest is at 8% of the stock's small 20 million-share float. That does raise the risk of a short squeeze, especially if ZOLL trades over $27.00.

Picked on January 03 at $25.86
Change since picked: + 0.00
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume: 257 thousand
 

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