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New Plays
Long Plays
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None AA
  HOLX

New Long Plays

None today.
 

New Short Plays

Alcoa - AA - close: 29.80 change: -0.66 stop: 32.05

Company Description:
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. (source: company press release or website)

Why We Like It:
The market seems to be growing more concerned about a global economic slowdown and this could be weighing on shares of AA. The metal and mining company just recently broke down from a multi-week consolidation phase and the breakdown was fueled by above average volume. More aggressive traders might want to jump into bearish positions now. I suspect that AA will bounce first and then roll over under previous support as new resistance. We're suggesting readers short AA in the $30.35-30.75 zone. More conservative traders could wait for the bounce and then open positions when AA falls back under the $30.00 mark again. If triggered our target is the $27.05 mark. The Point & Figure chart is bearish with a $17.00 target. The latest data listed short interest at just 2.7% of the float. FYI: I think our biggest risk in shorting AA would be any buyout or acquisition news. Over the past few months I've heard some analysts speculate that AA might be a target but at this point it is just speculation.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/07/08 (unconfirmed)
Average Daily Volume: 12.8 million

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Hologic Inc. - HOLX - close: 20.00 chg: -0.49 stop: 21.05

Company Description:
Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostics, medical imaging systems and surgical products dedicated to serving the healthcare needs of women. Hologic leads the industry in digital mammography systems and offers the most advanced technology for imaging and biopsy. (source: company press release or website)

Why We Like It:
Almost everything about HOLX looks bearish. The stock is in a long-term down trend. After days of consolidating sideways above $20.00 the rally attempt failed near the 50-dma and its gap down from July. The weekly chart has painted a bearish engulfing candlestick pattern. The MACD on the daily chart is nearing a new sell signal. The Point & Figure chart is bearish with a $15.00 target. We are suggesting readers open bearish positions on a move below today's low (19.66). Our suggested entry point will be $19.60. You may want to use $19.49 as your entry. If triggered we have two targets. Our first target is $18.15 near the August low. Expect a bounce when HOLX nears $18.00. Our second target is the $16.55 mark.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 5.5 million
 

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