NEW BULLISH Plays

Legg Mason - LM - close: 25.37 change: +0.80 stop: 23.49

Why We Like It:
The action in LM, an asset manager, looks bullish. When the rally faded in June traders bought the dip at old resistance. Now shares are poised to breakout to new relative highs. I want to see a little more follow through before initiating positions. The plan is to buy LM at $25.75. More conservative traders can wait for a move over Thursday's high of $26.74. If we are triggered at $25.75 our target is $29.75. Currently the Point & Figure chart is bullish with a $39.50 target. We do not want to hold over the late July earnings report.

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:       5.2 million 
Listed on  June 27, 2009    


U.S. Steel - X - close: 36.91 change: +0.95 stop: 33.35

Why We Like It:
This is an aggressive trade. The metal stocks are making a comeback and shares of X are bouncing from the bottom of their bullish channel. I'd rather buy a dip near $35.00 but Friday's breakout over the 200-dma looks like an entry point. We're using a relatively wide stop loss due to the stocks recent volatility. Because this is an aggressive, higher-risk trade I would only trade half or less than your normal position size. Our first target is $39.95. Our second target is $42.50.

Annotated chart:

Entry on      June 27 at $36.91 
Change since picked:     + 0.00   			
Earnings Date          07/28/09 (unconfirmed)    
Average Daily Volume:      17.8 million 
Listed on  June 27, 2009