Editor's Note:

The S&P 500 has been very resilient with traders ignoring bad news. I believe the index will probably hit the 1,000 area before correcting. That could happen tomorrow or it could take the rest of the week. The smarter play is to probably wait for the correction. I'm watching the 960-950 zone as potential support. I am adding a couple of new bullish trades tonight but they're very aggressive and very short-term.


NEW BULLISH Plays

Electronic Arts - ERTS - close: 21.10 change: +0.37 stop: 20.49.

Why We Like It:
Some of the video stocks have been under performing recently and today's earnings report from Ubisoft didn't inspire any confidence. Investors are worried about consumer spending and today's consumer confidence number would have been the perfect reason to sell ERTS and break its trendline of support. The sell-off didn't happen. Today's bounce looks like a short-term bullish entry point where we can limit our risk with a tight stop loss. I do expect some resistance near $22.00 but we're going to aim for the $22.95 mark. This is a short-term plan and we'll exit before the August 4th earnings.

Annotated chart:

Entry on      July 28 at $21.10 
Change since picked:     + 0.00   			
Earnings Date          08/04/09 (confirmed)    
Average Daily Volume:       6.5 million 
Listed on  July 28, 2009    


Steel Dynamics - STLD - close: 17.01 change: +0.59 stop: 15.90

Why We Like It:
Investors have been buying steel stocks. The market ignored negative comments from management at U.S.Steel (X) that the third quarter would be bad. Shares of STLD are rebounding and look poised to breakout from their $16-17 trading range. I'm suggesting bullish positions now. More conservative traders may want to wait for a new relative high (17.25 would work). Our first target to take profits is $18.45. Our second target is $19.85.

FYI: ArcelorMittal (MT), one of the largest steel makers in the world, reports earnings tomorrow morning. Their results and guidance could have an influence on STLD.

Annotated chart:

Entry on      July 28 at $17.01 
Change since picked:     + 0.00   			
Earnings Date          07/22/09 (confirmed)    
Average Daily Volume:       9.5 million 
Listed on  July 28, 2009