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New Plays
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URRE None

Play Editor's Note: We looked at a lot of stocks today trying to find something to add to the newsletter. Unfortunately, nothing seemed that compelling, except URRE and it's an aggressive play. Right now my bias is still bearish and readers will want to think about adding to bearish positions on market bounces.

Here are a few stocks that did catch my eye. CCI has formed a bullish flag pattern. The stock rallied 2.9% toward the top of its flag. A breakout over $42.25-42.50 might be a bullish entry point. KFT is at a pivotal spot. Shares have pulled back to support near its four-month trendline of higher lows and its 100-dma. Bulls could buy the dip with a tight stop under $31.00. Bears could look for a breakdown instead. Since my market bias is bearish I'm looking for a decline. CY just broke under its exponential 200-dma and appears to have completed a bearish head-and-shoulders pattern that forecast a $21 target. Now check out the DRG drug index. The DRG is testing its 2008 lows and could be poised to make a bullish double bottom. Then go check out BMY, which is testing $20 and a possible double bottom. The $20 level happens to be long-term support for BMY (check the weekly chart).


New Long Plays

Uranium Resources - URRE - close: 3.26 chg: -0.24 stop: 2.89

Company Description:
Uranium Resources Inc. explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 7 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. URI also has 183,000 acres of uranium mineral holdings and 101.4 million pounds of in-place mineralized uranium material in New Mexico. (source: company press release or website)

Why We Like It:
There is no arguing that the long-term trend in URRE is down. However, there is a very clear trendline of support that has produced some profitable bounces. Today's high-volume decline, which was three-times the normal volume, tagged that trendline and rebounded. This looks like an opportunity to buy the bounce with a tight stop. We're suggesting a stop loss under today's low. Our short-term target is the $3.95 mark. This should be considered an aggressive play. Something to watch out for is larger rival CCJ, which dropped sharply today. If CCJ continues to fall then URRE may follow.

Picked on June 10 at $ 3.26
Change since picked: + 0.00
Earnings Date 08/04/08 (unconfirmed)
Average Daily Volume: 393 thousand
 

New Short Plays

None today.
 

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