NEW BULLISH Plays

Compania Cervecerias - CCU - close: 36.39 change: +0.69 stop: 34.90

Why We Like It:
CCU's full name is Compania Cervecerais Unidas S.A. They make bear in Chile and Argentina. The stock's recent breakout and its retest of the $35.00 level as support is a new entry point to buy the stock. This is going to be a short-term trade as earnings are coming up in a week or two. Our first target is $39.90. The P&F chart is very bullish with a quadruple top bullish breakout buy signal and a $48 target.

Annotated chart:

Entry on   October 17 at $36.39 
Change since picked:     + 0.00   			
Earnings Date          10/26/09 (unconfirmed)    
Average Daily Volume:           thousand
Listed on   October 17, 2009    


HMS Holdings - HMSY - close: 41.30 change: +1.13 stop: 38.80

Why We Like It:
HMSY is a business services company that's been showing some relative strength. Broken resistance near $39.00 is now new support and the stock is rebounding toward its all-time highs in July 2009. That high is $43.00 and is probably short-term resistance but given the stocks current momentum I'm expecting a breakout. Our target is $44.90. We'll plan to exit ahead of the October 30th earnings report.

Annotated chart:

Entry on   October 17 at $41.30 
Change since picked:     + 0.00   			
Earnings Date          10/30/09 (confirmed)    
Average Daily Volume:       227 thousand
Listed on   October 17, 2009    


NEW BEARISH Plays

Avis Budget Group - CAR - close: 11.66 change: -0.56 stop: 12.60

Why We Like It:
The rally in CAR has been amazing. The stock was under 50 cents a share last March. It appears to have formed a bearish double top near $14.00 in September. Now CAR has a bearish trend of lower highs. It fell toward technical support at the 50-dma on Friday. I suspect the profit taking continues but I want to see some confirmation.

Use a trigger to open bearish positions at $11.25. Our target is $9.25. We'll have to keep an eye on the rising 100-dma as potential support. FYI: The P&F chart is forecasting an $8.50 target.

NOTE: CAR has a high amount of short interest, about 9% of the 101 million-share float. That raises the risk of a short squeeze. Readers may want to consider using put options to limit risk. A stop loss doesn't always work.

Annotated chart:

Entry on   October xx at $xx.xx <-- TRIGGER @ 11.25
Change since picked:     + 0.00   			
Earnings Date          11/02/09 (confirmed)    
Average Daily Volume:       3.8 million 
Listed on   October 17, 2009