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New Plays
Long Plays
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BKE None
PDX  

Play Editor's Note: I want to comment on our recent play on IBN. The rally in financials lifted IBN more than 13% today. The August $30 call we suggested as an insurance policy traded at $5.00 intraday. That is enough to make a profit on a broken short play. IBN hit potential technical resistance at the 50-dma this afternoon. If you haven't sold the call yet I would consider doing so now.


New Long Plays

Buckle Inc. - BKE - close: 51.69 change: +2.73 stop: 47.69

Company Description:
Offering a unique mix of high-quality, on-trend apparel, accessories, and footwear, Buckle caters to fashion-conscious young men and women. Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the Company's exclusive brand, BKE. (source: company press release or website)

Why We Like It:
I am shocked to see the BKE, an apparel retailer, hitting new all-time highs. Everyday the news is about how bad the economy is, how much pressure the consumer is under, how rising gas prices are sucking up discretionary income. Yet shares of BKE are bucking the trend. The stock has spent weeks consolidating sideways and now it's ramping up. We're suggesting long positions now. However, if you're patient we would prefer to buy a dip back toward $50.00. We're using a stop loss under today's low, which was a bounce near its 10-dma and 50-dma. Our target is the $57.50-60.00 zone. FYI: The Point & Figure chart is bullish with a $66 target. BKE has a high amount of short interest about 21% of the 15.5 million-share float. If BKE keeps inching higher it could see a short covering rally.

Picked on July 22 at $51.69
Change since picked: + 0.00
Earnings Date 08/21/08 (unconfirmed)
Average Daily Volume: 456 thousand

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Pediatrix Medical - PDX - cls: 51.14 change: +1.39 stop: 48.99

Company Description:
Pediatrix Medical Group, Inc. is the nations leading provider of neonatal, maternal-fetal and pediatric physician subspecialty services and recently expanded to include anesthesiology services. Pediatrix physicians and advanced practitioners are reshaping the delivery of care within the maternal-fetal, neonatal intensive care and pediatric cardiology subspecialties, using evidence-based tools, continuous quality initiatives and clinical research to enhance patient outcomes and provide high-quality, cost-effective care. (source: company press release or website)

Why We Like It:
Back in May 2008 PDX issued an earnings warning for 2008 and the stock gapped lower. The stock has spent the last several weeks digesting that news and now it looks like the stock is prepared to move higher. PDX has a new short-term trend of higher lows. Plus, if PDX can trade over $52.00 it will reverse the P&F chart into a new buy signal. Short-term technicals have turned bullish again. We're suggesting bullish positions with a stop at $48.99. We have two targets. Take some money off the table at $54.75. Then we'll exit completely at $57.00.

Picked on July 22 at $51.14
Change since picked: + 0.00
Earnings Date 08/07/08 (unconfirmed)
Average Daily Volume: 636 thousand
 

New Short Plays

None today.
 

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