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New Plays
Long Plays
Short Plays
AIRM None
PACR  
UYG  

Play Editor's Note: The market rally today is great but remember we're only expecting a short-term bounce. It could last several days so don't be fooled. The overall trend in the market is still down. When we think the bounce is beginning to fail we'll start looking for shorts again.


New Long Plays

Air Methods - AIRM - close: 27.52 change: +0.80 stop: 25.99

Company Description:
Air Methods Corporation is a leader in emergency air medical transportation and medical services. The Hospital Based Services Division is the largest provider of air medical transport services for hospitals. (source: company press release or website)

Why We Like It:
If the market might see a multi-day bounce then AIRM might be able to rally from its current, short-term consolidation pattern. The stock broke higher a few days ago and has been digesting those gains. We are suggesting bullish positions now. More conservative traders will want to seriously consider waiting for a move over $28.00 first. We're listing two targets. Our first target is $29.95 since the $30.00 level might be round-number resistance. Our second target is the $32.00 level, which is under potential technical resistance at the 50-dma. We do not want to hold over the early August earnings report. FYI: AIRM has a high amount of short interest, almost 20% of the float according to the latest data. This raises the risk of another short squeeze.

Picked on July 16 at $27.52
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 276 thousand

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Pacer Intl. - PACR - close: 22.71 change: +1.15 stop: 20.95

Company Description:
Pacer International, a leading asset-light North American third-party logistics and freight transportation provider, through its intermodal and logistics operating segments, offers a broad array of services to facilitate the movement of freight from origin to destination. (source: company press release or website)

Why We Like It:
A lot of the transport-related stocks are rising thanks to the pull back in oil. We want to point out that PACR has been out performing the group for months. The rising cost of oil has not stopped the stock from climbing higher this year. This stock tends to stair step higher and it looks like it's about to step up again. We're suggesting bullish positions now or anywhere in the $23.50-22.00 zone. Our target is the $25.85 mark. We do not want to hold over the early August earnings report. FYI: PACR also has a high amount of short interest around 19% of the float. A breakout to a new high could spark a short squeeze.

Picked on July 16 at $22.71
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 531 thousand

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Ultra Financials - UYG - close: 17.30 change: +2.55 stop: 15.99

Company Description:
The Ultra Financials ProShares (UYG) is an exchange traded fund (ETF) that moves twice the performance of the Dow Jones U.S. Financials index.

Why We Like It:
We're going to take a deep breath, hold our nose, and jump into the deep end of the pool. The financials made an impressive move higher today. A lot of banks and financial stocks produced very defined bullish reversal patterns. This UYG, which moves twice the performance of the Dow Jones Financial index, has produced a three-day bullish reversal candlestick pattern. We hate the idea of buying it after a 17% gain but this could very easily get away from us. The real key to this market's bounce is whether or not the financials see any follow through on today's gains. This is a very aggressive play because the bearish trend in financials is still unbroken. The volume in the last two days has been unbelievable. Today's volume was more than 104 million shares versus the average of just 28 million. The big volume is another clue that this might be a bottom. We're going to suggest a stop loss at $15.99. Our target is the $22.50 mark.

Picked on July 16 at $17.30
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 28 million
 

New Short Plays

None today.
 

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