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New Plays
Long Plays
Short Plays
BBY None
IACI  

Play Editor's Note: The market is very short-term oversold and way overdue for a bounce. I think we're setting up for that bounce right now. Not everyone agrees. The important note here is that I think it's just a bounce. I do think the market will see lower lows this year. I've said it before that even in a bear market we'll get some rallies and they tend to be sharp. The challenge is trying to catch them. While I expect this to be a multi-day bounce we need to plan for it to fail.

FYI: PCAR might be another bullish candidate with today's bullish engulfing pattern.


New Long Plays

Best Buy - BBY - close: 39.94 chg: +0.34 stop: 38.49

Company Description:
Best Buy Co., Inc. operates an international portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through approximately 1,300 retail stores across the United States, throughout Canada and in China. (source: company press release or website)

Why We Like It:
This is somewhat of an aggressive, higher-risk play. First of all BBY is in a longer-term (18-month) bearish trend. Second, it's also in a very bearish short-term down trend. Third, even though BBY is bouncing near its March lows, volume today was not very strong. This does not add to any bullish argument that BBY is at any sort of capitulation bottom. Fourth, the economy is struggling and that doesn't bode well for BBY's sales. Basically, if the market rebounds we think BBY will follow. The stock has a relatively high amount of short interest and if the market recovers then shorts might decide to run. We're suggesting readers buy BBY here with a stop under today's low (our stop is $38.49). Our short-term target is $42.85. We will look for a failed rally in the $43.00-44.00 zone as a potential entry point to launch bearish positions.

Picked on July 01 at $39.94
Change since picked: + 0.00
Earnings Date 09/18/08 (unconfirmed)
Average Daily Volume: 6.6 million

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IAC/Interactive - IACI - close: 19.30 change: +0.02 stop: 18.65

Company Description:
IAC/InteractiveCorp. owns a variety of online properties, websites and services.

Why We Like It:
IACI has put together back to back gains, which hasn't happened in days. The stock has surpassed its March lows and looks way overdue for a bounce. We're going to gamble on a rebound from here. Use a tight stop. We're suggesting $18.65. Our short-term target is the $20.65-21.00 zone.

Picked on July 01 at $19.30
Change since picked: + 0.00
Earnings Date 07/30/08 (unconfirmed)
Average Daily Volume: 3.1 million
 

New Short Plays

None today.
 

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