NEW BULLISH Plays

NATCO Group - NTG - close: 31.87 change: +0.71 stop: 29.75

Why We Like It:
The oil names have been showing strength in spite of a continued drop in crude oil. If the sector is this strong then we want some exposure to the group. NTG has been a showing relative strength compared to many of its peers. I am listing two different entry points to initiate bullish positions. We want to go long at $32.55 or we want to go long at $30.24. We'll use a stop loss at $29.75 for both. There is some resistance at $34.00 but our target is $37.50. We do not want to hold over the early August earnings report.

Annotated chart:

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          08/03/09 (unconfirmed)    
Average Daily Volume:       270 thousand
Listed on  July 14, 2009    


Tupperware - TUP - close: 27.36 change: +1.00 stop: 24.95

Why We Like It:
One might think that with the consumer struggling that stocks like TUP might be suffering. Yet the stock continues to show relative strength with a bullish pattern of higher lows. Could this be a "trade down" play as consumer shift their discretionary buys toward lower-priced items? The company spoke at a consumer conference today but I didn't see any news surface from the meeting. I'm suggesting readers buy TUP on a dip at $26.50. We'll use a stop loss at $24.95. Our target is $29.75. The Point & Figure chart is very bullish with a $56 target but we don't want to hold over earnings.

Annotated chart:

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/22/09 (confirmed)    
Average Daily Volume:       521 thousand
Listed on  July 14, 2009    


NEW BEARISH Plays

Humana Inc. - HUM - close: 28.28 change: -2.31 stop: 31.05

Why We Like It:
Some of the healthcare stocks were plunging over concerns about the Congressional healthcare bill. HUM fell 7.5% and broke support at $30.00. The stock has some support near $27.50 and I expect a bounce but broken support at $30.00 should act as new resistance. We want to launch bearish trades on a bounce back into the $29.50-30.00 zone. Our target is $25.25.

Annotated chart:

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          08/03/09 (confirmed)    
Average Daily Volume:       3.1 million 
Listed on  July 14, 2009