NEW BULLISH Plays

Hormel Foods - HRL - close: 35.25 change: +0.65 stop: 34.20

Why We Like It:
HRL is slowly marching higher. Investors have consistently been buying dips in this stock. Now after a multi-week consolidation the indicators are turning bullish again. I'm suggesting readers buy HRL here above $34.50. I'm going to try and really limit our risk with a tight stop at $34.20. More aggressive traders may want to put their stop under $34.00 or under the July low of $33.73. My first target is $37.90. My second target is $39.90. My time frame is mid to late August because we need to exit in front of earnings. More aggressive traders may want to contemplate holding over the report and giving HRL more time. FYI: The Point & Figure chart is very bullish with a $50 target.

Annotated chart:

Entry on      July 20 at $35.25 
Change since picked:     + 0.00   			
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       486 thousand
Listed on  July 20, 2009    


NEW BEARISH Plays

Usana Health Sciences - USNA - close: 25.05 chg: -1.34 stop: 28.21

Why We Like It:
USNA is breaking down. In early July shares broke their four-month up trend. The oversold bounce failed near $28.00. Now the stock is under performing the market and sinking on strong volume. Please note that I consider this an aggressive, higher-risk trade because shares have very, very low daily volume (54,000) and the stock has above average short interest (about 12%). That's not a great combination should a short squeeze appear. I am suggesting traders only use very small position sizes (at least half or less than your normal trade size). We're gong to use a stop loss above the recent high. I am suggesting bearish positions now but if you're patient we might get a better entry point on a bounce near $26.00-27.00. My first target to take profits is $21.00.

Annotated chart:

Entry on      July 20 at $25.05 
Change since picked:     + 0.00   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:        54 thousand
Listed on  July 20, 2009