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New Plays
Long Plays
Short Plays
ASH None
AYI  

Play Editor's Note: A week ago the major indices had rallied to resistance and the market was flooded with bearish reversals. Thoughts of a retest of the January low were rampant among traders and analysts alike. My what a difference a week makes. Investor sentiment seems to have changed. Now that investors believe that the Fed will protect the economy from recession and there is growing hope for a bond insurer bailout everyone is in a buying mood (or a short covering mood). However, last week was one of the best weeks for the market in five years. It's probably time for a dip.

FYI: We found a lot of stocks we liked as potential bullish plays this weekend. Stocks I am watching for potential entry points are: ARLP, CPA, HP, PAL, SMH, HRZ, TOL, URE and NURO. NURO could be a big short squeeze candidate! Speaking of short squeeze candidates...SPF looks like a huge short squeeze in progress. The most recent data lists short interest at 67% of the float. We are not playing SPF because earnings are due out on Monday.


New Long Plays

Ashland Inc. - ASH - close: 47.09 chg: +1.56 stop: 43.99

Company Description:
Ashland Inc., a diversified, global chemical company, provides quality products, services and solutions to customers in more than 100 countries. (source: company press release or website)

Why We Like It:
It looks like shares of ASH have bottomed. The stock is breaking past resistance levels left and right. Friday's move over resistance at $46.00 and its 50-dma looks like an entry point. However, we would prefer to buy a dip. We are suggesting readers buy ASH on a pull back into the $46.15-45.00 range. If triggered our target is the $49.75-50.00 zone.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 807 thousand

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Acuity Brands - AYI - cls: 47.09 chg: +1.58 stop: 43.49

Company Description:
Acuity Brands, Inc. owns and operates Acuity Brands Lighting. With fiscal year 2007 net sales of approximately $2.0 billion, Acuity Brands Lighting is one of the worlds leading providers of lighting fixtures. (source: company press release or website)

Why We Like It:
AYI is looking pretty strong here with a breakout past resistance near $45.00, its 100-dma and its December highs. While the relative strength looks attractive we don't want to chase it. We are suggesting readers buy a pull back into the $45.50-45.00 range. If triggered our target is the $49.50-50.00 zone. The Point & Figure chart looks very bullish with a $62 target and a breakout over resistance.

Picked on January xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/03/08 (unconfirmed)
Average Daily Volume: 857 thousand
 

New Short Plays

None today.
 

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