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New Plays
Long Plays
Short Plays
COL None
TSL  
TXT  
WYE  

Play Editor's Note: I'm starting to feel like a broken record here. Our market bias is bearish but stocks remain oversold and are way overdue for a bounce. Keep an eye on the VIX. The market may continue to drift lower until we see a spike toward the 30 region on the VIX.


New Long Plays

Rockwell Collins - COL - close: 48.64 chg: +0.79 stop: 47.45

Company Description:
Rockwell Collins is a pioneer in the development and deployment of innovative communication and aviation electronic solutions for both commercial and government applications. (source: company press release or website)

Why We Like It:
COL has had a very rough six weeks with a collapse from $65 to almost $47. Shares have spent the last several days trying to build a bottom in the $47-48 zone. We're tempted to buy the stock now. However, we want to see a little more confirmation first so we're suggesting a trigger to buy the stock at $49.25. More conservative traders may want to wait for a rise over $50.00 first. If triggered our target is the $53.50 mark. This is going to be a very short-term play. COL is due to report earnings on the morning of Friday, July 11th. We do not want to hold over the announcement. We'll plan to exit on Thursday at the closing bell.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/11/08 (confirmed)
Average Daily Volume: 1.6 million

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Trina Solar - TSL - close: 28.99 chg: +0.70 stop: 26.35

Company Description:
Trina Solar Limited, through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. (source: company press release or website)

Why We Like It:
TSL was recently added to the Russell Global Index, which should increase some of the buying pressure for the stock as those fund managers that track this index add TSL to their portfolio. This looks like a potential bottom as TSL bounces from its March lows. Thursday's move is also a "hammer" candlestick, which can be a one-day reversal pattern. While we are suggesting new positions here more conservative traders will want to strongly consider waiting for a rally over $30.00 before initiating positions. We're suggesting a stop under Thursday's low. We have two targets. Our first target is $32.50. Our second target is $34.90.

Picked on July 03 at $28.99
Change since picked: + 0.00
Earnings Date 08/21/08 (unconfirmed)
Average Daily Volume: 1.6 million

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Textron - TXT - close: 47.84 change: +0.89 stop: 46.89

Company Description:
Textron Inc. is a $13.2 billion multi-industry company operating in 34 countries with approximately 44,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. (source: company press release or website)

Why We Like It:
Shares of TXT have been trying to build a bottom near $47.00 for over a week now. We're going to gamble that it has found a bottom here and suggest bullish positions. We'll put the stop loss at $46.89, just under last week's low. This is a gamble because the market is still in a bearish trend and not showing any signs of reversing yet. Since TXT has been trying to bottom if the market does rebound we would expect a nice bounce out of this stock. Our target is the $53.70 mark. More conservative traders may want to wait for a rally over its 10-dma or a rally over the $50.00 level before initiating positions. However, if you do wait you'll want to adjust your stop loss higher.

Picked on July 03 at $47.84
Change since picked: + 0.00
Earnings Date 07/17/08 (confirmed)
Average Daily Volume: 2.1 million

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Wyeth - WYE - close: 46.99 change: +0.55 stop: 46.39

Company Description:
Wyeth Pharmaceuticals, a division of Wyeth, has leading products in the areas of womens health care, infectious disease, gastrointestinal health, central nervous system, inflammation, transplantation, hemophilia, oncology, vaccines and nutritional products. Wyeth is one of the worlds largest research-driven pharmaceutical and health care products companies. (source: company press release or website)

Why We Like It:
WYE's breakout higher in mid June was a new buy signal. The stock has spent two weeks digesting that gain and looks poised to run higher from here. We are tempted to buy the stock now near $47.00 but in this market we want to see some momentum. We're suggesting readers buy WYE at $48.31. If triggered our target is the $52.50 mark. We do not want to hold over the late July earnings report. FYI: The P&F chart has a $61 target.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/23/08 (unconfirmed)
Average Daily Volume: 8.7 million
 

New Short Plays

None today.
 

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