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New Plays
Long Plays
Short Plays
SNY GXDX
  INFY

Play Editor's Note: Don't get married to this bounce. We expect it to fail. The only question is when and where. I'm watching the DJIA 11,700 to 12,000 zone as overhead resistance and the probable area this bounce will fail. Obviously there are no guarantees but be ready. Until then be very selective and cautious on new positions.


New Long Plays

Sanofi-Aventis - SNY - cls: 36.10 change: +0.76 stop: 34.95

Company Description:
Sanofi-aventis, a leading global pharmaceutical company, discovers, develops and distributes therapeutic solutions to improve the lives of everyone. (source: company press release or website)

Why We Like It:
SNY has been out performing the market the last few weeks. It would be tempting to buy Friday's breakout over the 50-dma but there appears to be some resistance near $36.20. We're suggesting readers buy SNY if it trades at $36.55 or higher, which would be a bullish breakout over its 100-dma. If triggered our target is the $39.50 mark. This is an aggressive target since we plan to exit ahead of the July 31st earnings report (unconfirmed at this time). An alternative entry point that more aggressive traders might want to consider would be a dip near $35.50.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 1.7 million
 

New Short Plays

Genoptix - GXDX - close: 28.06 change: -1.27 stop: 30.75


Company Description:
Genoptix is a specialized laboratory service provider focused on delivering personalized and comprehensive diagnostic services to community-based hematologists and oncologists. Genoptix is headquartered in Carlsbad, California. (source: company press release or website)

Why We Like It:
The market's recent bounce has been no help for GXDX. The stock has developed a pattern of lower highs. Now it looks like the profit taking could be about to pick up speed. Technical signals are turning negative across multiple time frames. The Point & Figure chart is bearish with a $19 target. We're suggesting shorts with a stop loss above last week's high at $30.75. This stop is a little wider than we'd like and this is an aggressive play because GXDX does not have a lot of volume, which makes it more susceptible to volatile movement. We have two targets. Our first target is $25.50. Our second target is $22.75. We do not want to hold over the early August earnings report.

Picked on July 20 at $28.06
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 146 thousand

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Infosys - INFY - close: 38.42 change: -1.32 stop: 40.05

Company Description:
Infosys defines, designs and delivers IT-enabled business solutions that help Global 2000 companies win in a flat world. (source: company press release or website)

Why We Like It:
INFY sold off sharply following its earnings report on July 11th. The stock bounced with the market this past week but that rebound is fading as investors unload on the strength. Broken support near $40.00 has now become new resistance. We're suggesting new shorts here but more conservative traders may want to wait for a new decline under $38.00 first. Our target is the $35.25-35.00 zone. FYI: The P&F chart is bearish with a $34 target.

Picked on July 20 at $38.42
Change since picked: + 0.00
Earnings Date 07/11/08 (confirmed)
Average Daily Volume: 3.6 million
 

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