NEW BULLISH Plays

A.O.Smith Corp. - AOS - close: 31.87 change: -0.07 stop: 29.90

Why We Like It:
Shares of AOS have been consolidating under resistance in the $32.50-33.00 zone for months. The bullish trend of higher lows is forecasting a breakout higher. The Point & Figure chart is already bullish and points to a $45 target. The MACD has turned bullish. I'm suggesting a trigger to buy AOS at $32.60. More conservative traders may want to wait for a move $33.00. I am listing an alternative trigger to buy AOS on a dip in the $30.25-30.00 zone. If triggered at either our first target is $34.95. Our second target is $37.00.

Annotated chart:

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/16/09 (unconfirmed)    
Average Daily Volume:       195 thousand
Listed on  June 20, 2009    


PerkinElmer Inc. - PKI - close: 17.99 change: +0.04 stop: 16.45

Why We Like It:
PKI is part of the medical instruments and supplies industry. The stock exploded higher in late April/early May on a better than expected earnings report. Since then it has been consolidating sideways in the $17-16 zone. This past week saw shares breakout again. I'm suggesting readers buy PKI on a dip in the $17.15-17.00 zone. We're setting our stop at $16.45. Our first target is $19.45.

Annotated chart:

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       1.1 million 
Listed on  June 20, 2009    


Wellpoint Inc. - WLP - close: 50.93 change: +0.19 stop: 47.25

Why We Like It:
The health insurance stocks have been on the rise as the battle for healthcare heats up in Washington. WLP has broken out from a multi-week trading range. Aggressive traders may want to buy Friday's bounce from $50.00. I'm suggesting readers buy a dip at $49.25. The $49.00 level was resistance so it should be support. If triggered at $49.25 our first target is $54.00. Our second target is $57.40.

Annotated chart:

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       4.4 million 
Listed on  June 20, 2009