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New Plays
Long Plays
Short Plays
AA None
CWTR  
SIAL  
STI  
TER  
TIE  

Play Editor's Note: This remains a bear market. However, after a week of steady selling pressure this weekend's news regarding a government bailout for FRE and FNM could spark a big short-covering rally. Bear market rallies tend to be fast and sharp. I'm expecting a three or four day bounce and then we'll start looking for new bearish candidates if conditions have changed. FYI: Keep an eye on Wal-Mart (WMT). It might be a buy here or on a breakout over $61.00.


New Long Plays

Alcoa - AA - close: 28.30 change: -0.26 stop: 27.19

We had tried to play AA as a bearish candidate but the stock never hit our entry point to open positions. Now shares are bouncing from near our bearish target and support near its January 2008 lows. I suspect that AA could rally back to resistance near $30.50. We're suggesting long positions now. Our target is $30.35. We're listing a stop loss under Friday's low.

Picked on September 06 at $28.30
Change since picked: + 0.00
Earnings Date 10/07/08 (unconfirmed)
Average Daily Volume: 12.8 million

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Coldwater Creek - CWTR - cls: 7.77 change: +0.34 stop: 7.19

Company Description:
Founded in 1984, and headquartered in Sandpoint, Idaho, Coldwater Creek is a leading specialty retailer of women's apparel, gifts, jewelry and accessories. The company sells its merchandise through premium retail stores across the country, online at coldwatercreek.com and through its catalogs. (source: company press release or website)

Why We Like It:
Oddly enough the retailers, especially several of the apparel retailers, have been showing relative strength in this market. CWTR is one such stock that is hitting new multi-month highs. We are tempted to buy the stock now. However, a quick look at the chart below shows a trendline of resistance. We're suggesting a trigger to buy CWTR at $8.05. More nimble traders could try buying a dip near $7.50 if the stock provides one. If we are triggered at $8.05 we're listing two targets. Our first target is $9.00. Our second target is $9.95. The Point & Figure chart has turned bullish with a bullish triangle breakout buy signal and a $13.00 target.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/28/08 (unconfirmed)
Average Daily Volume: 1.7 million

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Sigma-Aldrich - SIAL - cls: 53.80 change: +0.89 stop: 52.15

Company Description:
Sigma-Aldrich is a leading Life Science and High Technology company. Its biochemical and organic chemical products and kits are used in scientific and genomic research, biotechnology, pharmaceutical development, the diagnosis of disease and as key components in pharmaceutical and other high technology manufacturing. (source: company press release or website)

Why We Like It:
SIAL is another stock that has plunged right to its July lows and bounced sharply. There is no doubt that the short-term trend is down. However, after four weeks of selling the stock is short-term oversold and due for a correction. We suspect the market will see some short covering this week. We're listing a stop loss under Friday's low. Our target is $58.00.

Picked on September 06 at $53.80
Change since picked: + 0.00
Earnings Date 10/21/08 (unconfirmed)
Average Daily Volume: 1.2 million

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SunTrust Banks - STI - close: 45.42 change: +1.86 stop: 42.49

Company Description:
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. (source: company press release or website)

Why We Like It:
We still think there is a lot of pain and suffering ahead for the financials but short-term the group could see a sharp rebound. The FRE and FNM news this weekend could spark a relief rally or short-covering rally that lasts two or three sessions. We're suggesting a stop loss under Friday's low. Our target is $49.95. More aggressive traders could aim for the 200-dma.

Picked on September 06 at $45.42
Change since picked: + 0.00
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume: 8.1 million

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Teradyne - TER - close: 9.18 change: +0.28 stop: 8.75

Company Description:
Teradyne is a leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. (source: company press release or website)

Why We Like It:
The semiconductor sector has been hammered to new multi-year lows. The group is so oversold that if the market does see a rally this sector could see some sharp short covering. TER didn't quite reach new lows. The stock is bouncing from support near $8.85, a level that has held as support several times in the past. This looks like a lower risk spot to speculate on a bounce. We're listing two targets. Our first target is $10.00. Our second target is $10.60.

Picked on September 06 at $ 9.18
Change since picked: + 0.00
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume: 3.6 million

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Titanium Metals - TIE - close: 13.02 change: +0.51 stop: 11.99

Company Description:
TIMET, headquartered in Dallas, Texas, is a leading worldwide producer of titanium metal products. (source: company press release or website)

Why We Like It:
TIE has pulled back toward support and bounced. Traders bought the dip near $12.00 and its 50-dma. We told readers the last time we played TIE to watch for a pull back. This looks like another opportunity to buy the stock. We'll use a stop loss at $11.99. Our target is $14.75, just under the recent highs.

Picked on September 06 at $13.02
Change since picked: + 0.00
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume: 3.7 million
 

New Short Plays

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