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New Plays
Long Plays
Short Plays
FTI AKAM
  GPI

Play Editor's Note: Most of the candidates we found this weekend were bearish. While I remain bearish on stocks some of the internal indicators I watch are (once again) suggesting we're near a potential (short-term) bottom. Actually, I'm seeing a lot of mixed signals. It would be great if we could just get the next big washout/capitulation event. In the meantime a few stocks that look like bearish/short candidates are: EGLE, INTU, JNPR, LTR, and MNST.


New Long Plays

FMC Tech. - FTI - close: 58.18 chg: +0.79 stop: 54.45

Company Description:
FMC Technologies, Inc. is a leading global provider of technology solutions for the energy industry and other industrial markets. The Company designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry. (source: company press release or website)

Why We Like It:
FTI is another oil service stock that looks set to run. Shares just broke through a bull flag pattern. There is potential resistance near $60 but given the sky-high oil and gas prices we expect FTI to push past the $60 mark. Shares have additional resistance near $65.00. We are aiming for the $64.00-65.00 range. FYI: FTI is also a bullish candidate on the OptionInvestor.com newsletter.

Picked on March 16 at $ 58.18
Change since picked: + 0.00
Earnings Date 05/08/08 (unconfirmed)
Average Daily Volume = 2.2 million
 

New Short Plays

Akamai Tech - AKAM - close: 31.19 chg: -1.32 stop: 33.55

Company Description:
Akamai is the leading global service provider for accelerating content and business processes online. Thousands of organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. (source: company press release or website)

Why We Like It:
Tech stocks have really been under performing and the networking/computer service stocks are no exception. AKAM has a bearish trend of lower highs that has coincided with failed rallies near the exponential 200-dma. This past Friday witnessed AKAM breaking down under support near $32.00 and its 50-dma. One could argue that AKAM might have support near $30 but it hasn't held up very well in the past. The long-term trend in AKAM is bearish but we are fighting against the current in the P&F chart. We are suggesting shorts now or on a failed rally in the $32.00-32.50 zone. We have two targets. Our first target is the $27.75-27.50 zone. Our second target is the $25.50-25.50 range. FYI: Traders need to know that the most recent data puts short interest in AKAM at more than 12% of the 161.6 million-share float. That is an above average amount of short interest and raises our risk for a short squeeze!

Picked on March 16 at $31.19
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 5.8 million

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Group 1 Auto - GPI - close: 22.92 chg: -1.11 stop: 24.51

Company Description:
Group 1 owns and operates 104 automotive dealerships, 143 franchises, and 26 collision service centers in the United States and United Kingdom that offer 32 brands of automobiles. (source: company press release or website)

Why We Like It:
GPI is in a long-term bearish down trend. While January 2008 saw an oversold bounce the rebound stalled in February. GPI ended up producing a new bearish double-top pattern. Shares are now beginning to slip under support near $23.00. We suspect that GPI will retest support near $20.00. Our target is the $20.35-20.00 zone. This week could bring news for GPI. The company is presenting at a conference on March 18th at 3:00 p.m. Eastern time. FYI: It is very important that readers note the high short interest in GPI. The most recent data lists short interest at more than 21% of the 20.8 million-share float. That's a high amount of short interest and a small float, which significant raises our risk for a short squeeze.

Picked on March 16 at $22.92
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 535 thousand
 

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