Editor's Note:

I am suggesting that readers trade carefully. The market has been really choppy with a lot of false signals. Even professional traders are having a hard time in this market.


NEW BULLISH Plays

Cardinal Health - CAH - close: 34.98 change: +0.77 stop: 32.40

Why We Like It:
The Obama administration appears like it's slowly losing the fight on a government-run healthcare option and that's been bullish news for the health insurers. CAH has broken out over resistance near $34.00 and its simple 200-dma. Shares are now testing round-number resistance at $35.00. Volume has been very strong on the rally. I expect it will continue. We want to buy CAH now or on dips near $34.00. Our first short-term target to take profits is at $37.45. Our second is $39.85.

Annotated chart:

Entry on    August 19 at $34.98 
Change since picked:     + 0.00   			
Earnings Date          11/17/09 (unconfirmed)    
Average Daily Volume:       2.8 million 
Listed on  August 19, 2009    


Imperial Oil - IMO - close: 36.08 change: +0.96 stop: 34.49

Why We Like It:
The energy sector is bouncing and IMO is rebounding from support near $35.00 and its simple 200-dma. This looks like a lower-risk entry point to buy the stock. We'll use a stop loss at $34.49. Our target is the $39.90 mark.

Annotated chart:

Entry on    August 19 at $36.08 
Change since picked:     + 0.00   			
Earnings Date          10/30/09 (unconfirmed)    
Average Daily Volume:       291 thousand
Listed on  August 19, 2009