NEW BULLISH Plays

Stryker Corp. - SYK - close: 43.93 change: -0.30 stop: 40.65

Why We Like It:
The September rally in SYK produced a major breakout over resistance at $42.00. After surging to $48.00 the stock has begun to correct. I suspect the correction continues and SYK will retest $42.00 again.

Before I continue investors need to be aware that SYK may be a higher-risk trade. The current administration is considering taxes on medical devices, which could negatively impact sales for SYK. Plus, SYK might be planning some acquisitions and normally shares of the acquiring company go down when the merger is announced. It's hard to be a time frame on both of these risks so they may not be a factor over the next few weeks and we plan to exit ahead of the October 20th earnings report.

The plan is to buy SYK on a dip at $42.50. We'll use a stop at $40.65. Our first target is $46.00.

Annotated chart:

Entry on   October xx at $xx.xx <-- TRIGGER @ 42.50
Change since picked:     + 0.00   			
Earnings Date          10/20/09 (confirmed)    
Average Daily Volume:       3.2 million 
Listed on   October 03, 2009    


NEW BEARISH Plays

U.S. Oil ETF - USO - close: 35.87 change: -0.36 stop: 37.25

Why We Like It:
Oil seems to be trading on technicals lately. The commodity broke down in late September. Now the oversold bounce is stalling at resistance (previous support). This looks like an entry point for bearish positions that allows for a relatively tight stop loss. Be sure to keep an eye on the dollar. The trend is down but the recent consolidation in the dollar has the currency poised to bounce higher, which would put further pressure on oil.

Our first target is $33.00 near the 200-dma. Our second target is $30.25.

Annotated chart:

Entry on   October 03 at $35.87 
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:      13.7 million 
Listed on   October 03, 2009