NEW BULLISH Plays

UltraShort Europe - EPV - close: 24.96 change: +1.00 stop:21.75

Why We Like It:
The EPV is the UltraShort MSCI Europe ProShares ETF, which is a double (200%) inverse ETF based off the MSCI Europe index. If Europe goes down this ETF will go up twice as fast. I strongly suspect that Europe's problems are far from over and if Greece has trouble with its next bond auction then European market and the euro should accelerate lower. Let's try to take advantage of this set up with an inverse ETF.

I do consider this somewhat aggressive since we're trading a double ETF, which tends to be volatile. The good news is that volume is picking sharply. I am suggesting small bullish positions now with a stop loss at $21.75. We're going to use a wide, aggressive stop to give us some room. Our first target to take profits is at $29.50.

Annotated chart:

Entry on  February 23 at $24.96 
Change since picked:     + 0.00   			
Earnings Date          --/--/-- 
Average Daily Volume:        98 thousand
Listed on  February 23, 2010    


Ford Motor Co. - F - close: 11.60 change: +0.39 stop: 10.99

Why We Like It:
Shares of F look like a relative strength play. The stock is ignoring the recent market movement and marching to the beat of its own drum. Shares of F have been consolidating sideways the past several weeks and today's 3.4% gain appears to be a bullish breakout from this narrowing consolidation.

I am suggesting we open small bullish positions now. We'll use a relatively tight stop at $10.99. There is potential resistance at the January highs but our first target is $12.50. Our second, longer-term target is $13.40. Our time frame is several weeks.

Annotated chart:

Entry on  February 23 at $11.60 
Change since picked:     + 0.00   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:        96 million 
Listed on  February 23, 2010    


NEW BEARISH Plays

LuLuLemon - LULU - close: 27.93 change: -0.39 stop: 29.51

Why We Like It:
LULU is an athletic apparel company specializing in yoga attire. They have been enjoying a very strong growth rate, which as powered the stock higher. Now it seems the stock has gotten ahead of itself and it's starting to correct. The oversold bounce is reversing under resistance near $29.50 and its 50-dma. I am suggesting bearish positions now. Our first target to take profits is at $25.10. Our second target is $22.75.

Annotated chart:

Entry on  February 23 at $27.93 
Change since picked:     + 0.00   			
Earnings Date          03/25/10 (unconfirmed)    
Average Daily Volume:       668 thousand
Listed on  February 23, 2010    


Yum Brands - YUM - close: 33.58 change: -0.10 stop: 34.15

Why We Like It:
You probably know YUM by its multiple fast-food brands like Taco Bell, KFC, Pizza Hut, and Long John Silver. Some investors consider YUM a good defensive play with some growth given their expansion into emerging markets like China. Unfortunately all that growth overseas seems to be baked in. The stock has been trading sideways in a $32-37 trading range for several months. Now it appears the stock might be in jeopardy of breaking down from that trend.

I'm suggesting small bearish positions now since YUM still has support near $32.00. If it breaks $32.00 we can add to positions. We'll use a relatively tight stop loss. Our first target is $30.15. Our longer-term target is $28.00.

Annotated chart:

Entry on  February 23 at $33.58 
Change since picked:     + 0.00   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       4.3 million 
Listed on  February 23, 2010