NEW BULLISH Plays

Morgan Stanley - MS - close: 28.54 change: +1.00 stop: 24.90

Why We Like It:
We're going to try and score again with a bullish bet on MS. Traders have consistently bought the stock when it dipped near its long-term bullish trend of higher lows. This week that was a dip near $26.00. The market is likely to sell-off tomorrow. I'm suggesting readers buy MS on a dip at $26.25. We'll set our stop loss at $24.90. If triggered at $26.25 our first target is $29.20. Our second target is $31.00.

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:        24 million 
Listed on  July 23, 2009    


Microsoft - MSFT - close: 25.56 change: +0.76 stop: 20.90

Why We Like It:
MSFT reported earnings after the bell tonight. The company missed Wall Street's estimates by 2 cents and really blew it on the revenue number. Analysts were expecting MSFT to bring in revenues of $14.3 billion for the quarter. The company announced revenues of $13.1 billion. Shares have been rising on expectation that Windows 7 that comes out this holiday season will be huge and coincide with an economic rebound. That future catalyst hasn't changed so any significant sell-off could be a buying opportunity.

Currently MSFT is off about 10% in after hours trading following its disappointing report. I am suggesting readers buy MSFT in the $22.50-22.00 zone. More conservative traders can set their stop around $21.85. I'm suggesting we use a stop loss at $20.90. Our ten to twelve week target will be $27.75.

Annotated chart:

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009