Editor's Note:

Traders shouldn't make any big bets based on Friday's market movement. Let's wait and see how stocks react on Monday when fund managers get back from their Thanksgiving holiday.

A few stocks that could be bullish candidates: INFY, MDT, RGLD

A few stocks that could be bearish candidates: LOGI, CHRW, HSIC, CTXS, EXPD



NEW BULLISH Plays

Warner Chilcott - WCRX - close: 24.47 change: +0.25 stop: 22.49

Why We Like It:
WCRX is a pharmaceutical company that is showing plenty of relative strength. The stock is poised to breakout to new all-time highs. Traders bought the dip on Friday morning and the stock closed with a gain (an uncommon feat on Friday). It could be short covering. The most recent data listed short interest at more than 8% of the 90 million share float.

I am suggesting small bullish positions if WCRX can hit $24.65 (a new high). If triggered our first target is $27.40. We'll consider a second target closer to $29.50 if the market cooperates.

Annotated chart:

Entry on  November xx at $xx.xx <-- TRIGGER @ 24.65 (use small positions)
Change since picked:     + 0.00   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009    


NEW BEARISH Plays

Activision-Blizzard - ATVI - close: 11.58 change: +0.02 stop: 12.01

Why We Like It:
In spite of all the positive news and the sales records broken by ATVI's new Call of Duty game the stock just can't breakout past resistance near $12.00. Shares look poised to begin their next leg lower. I'm suggesting a trigger at $11.15 to open small bearish positions. More conservative traders could wait for a drop under $11.00 first. If triggered our first target is $10.05. Our second target is $9.25. Our time frame is several weeks. FYI: The Point & Figure chart is currently forecasting a $7.50 target.

Annotated chart:

Entry on  November xx at $xx.xx <-- TRIGGER @ 11.19
Change since picked:     + 0.00   			
Earnings Date          02/04/10 (unconfirmed)    
Average Daily Volume:        20 million 
Listed on  November 28, 2009    


Lam Research - LRCX - close: 34.49 change: -0.46 stop: 36.26

Why We Like It:
Semiconductor stocks have been under performing. It looks like shares of LRCX are in the process of breaking down. I'm suggesting small bearish positions now. More conservative traders may want to wait for a breakdown under $32.00 and its 100-dma first. Keep in mind that we're setting our first target to take profits at $30.25. Our second target at $28.25 (or the simple 200-dma).

Shares of LRCX appear to have formed a bearish head-and-shoulders pattern but where the neckline falls is a matter of opinion. Traders should also note that this is a higher-risk trade. The most recent data listed short interest at more than 14% of the 126 million-share float. That is above average short interest and raises our risk of a short squeeze.

Annotated chart:

Entry on  November 28 at $34.49 (small positions)
Change since picked:     + 0.00   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  November 28, 2009