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New Plays
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MER None

Play Editor's Note: It looks like we finally found a tradable bottom in the markets. This is the spot to consider bullish positions but remember - we're still in a bear market. Bear market rallies are usually fast and sharp but they end in a new lower high. The question we have to ask is how long before the rebound rolls over. After a 600-point bounce in the DJIA today I would not be surprised to see a little profit taking tomorrow morning. I wish we had added JOE last night. The stock was up 10% today and we could have bought the dip this morning.

New Long Plays

Merrill Lynch - MER - cls: 58.05 change: +3.62 stop: 53.75

Company Description:
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 countries and territories and total client assets of almost $2 trillion. (source: company press release or website)

Why We Like It:
The brokers may have found a temporary bottom and MER looks poised to out perform. Shares of MER have been trying to bottom a few days earlier than its peers. Shares have seen huge volume over the last three days as investors buy the dips and rallies. Today saw MER breakout over resistance near $56.00. We would consider new positions now but if you are the patient type then consider waiting for a pull back near $56.50-57.00 as your entry point. MER should have short-term support at $56.00, 54.00 and 52.00. We're suggesting a stop loss at $53.75. Our target is the $64.50-65.00 range. Watch out for potential resistance at the 100-dma near $62.50.

Picked on January 23 at $58.05
Change since picked: + 0.00
Earnings Date 04/17/08 (unconfirmed)
Average Daily Volume: 22.2 million

New Short Plays

None today.

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