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New Plays
Long Plays
Short Plays
CAR None
LULU  
SLT  

Play Editor's Note: I wanted to list a few more stocks that made my watch list. The fertilizer stocks look poised to rally and TNH looks like a bullish candidate. SFI, a real estate stock, might be a bullish candidate on a pull back. Third is HOGS a Chinese pork producer. HOGS made a big move on Friday but rally through resistance near $11.50 might make it a speculative bullish candidate.


New Long Plays

Avis Budget Group - CAR - close: 15.00 chg: +0.25 stop: 13.45

Company Description:
Avis Rent A Car System, LLC and its subsidiaries operate one of the world's leading car rental brands, providing business and leisure customers with a wide range of services at more than 2,100 locations in the United States, Canada, Australia, New Zealand and the Latin American / Caribbean region. (source: company press release or website)

Why We Like It:
CAR reported earnings in early May, missed estimates, and yet traders are buying the stock anyway. This past week was bullish with a breakout over resistance near $14.00. However, the stock is nearing resistance at the top of its channel and is at round-number resistance near $15.00. We're suggesting readers buy a dip in the $13.85-13.75 zone. We'll use a stop at $13.45. If triggered our target is the $15.50-16.00 range or the 200-dma, which ever comes first. The Point & Figure chart is very bullish with a $22 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 1.0 million

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Lululemon Athletica - LULU - cls: 36.55 chg: -0.08 stop: 33.49

Company Description:
lululemon athletica is a yoga-inspired athletic apparel company that creates components for people to live longer, healthier and more fun lives. (source: company press release or website)

Why We Like It:
LULU broke through significant resistance near $34.00 and its exponential 200-dma this past week. The trend has turned bullish but the stock looks short-term overbought. We are suggesting readers buy a dip in the $34.80-34.00 zone. Broken resistance at $34.00 should be new support. If you have the patience try and wait for an entry as close to $34.00 as possible. Unfortunately, we may not get one. If triggered at $34.80 our target is the $39.00-40.00 zone. The P&F chart is very bullish with a major buy signal and a $50 target. FYI: Keep in mind that LULU doesn't have to pull back. The stock is heavily shorted and might continue to see a short squeeze. The most recent data listed short interest at more than 56% of the small 13 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/02/08 (unconfirmed)
Average Daily Volume: 951 thousand

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Sterlite Ind. - SLT - close: 21.82 chg: +0.90 stop: 19.74

Company Description:
Sterlite Industries is India's largest non-ferrous metals and mining company with interests and operations in aluminum, copper, zinc and lead. It is a subsidiary of Vedanta Resources plc, a London-based diversified FTSE 100 metals and mining group. (source: company press release or website)

Why We Like It:
We like the metal and mining stocks and this one, an Indian company, has under performed a lot of its peers. The stock looks like it's formed a bullish or inverse head-and-shoulders pattern. This past week showed a nice breakout over its 100-dma and SLT could be poised to rally through resistance near $22.00. We are listing two different entry points. If SLT continues to rally then we're suggesting readers buy SLT at $22.25 with a stop loss at $20.95. We would prefer to buy a dip in the $21.00-20.50 zone. If SLT hits our alternate trigger at 21.00 we'll use a stop loss at $19.74. Our target is the $25.75-26.00 zone. The Point & Figure chart is bullish with a $31 target.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 04/24/08 (unconfirmed)
Average Daily Volume: 813 thousand
 

New Short Plays

None today.
 

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