NEW BULLISH Plays

Scotts Miracle-Gro Company - SMG - close: 41.65 change: +0.47

Stop Loss: 40.60
Target(s): 44.85
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 01, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 500 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
SMG is a lawn and garden products company. The stock rallied in mid August in spite of the company lowering their earnings guidance. Now shares have corrected but traders are buying the dip near technical support. I think this bounce could have legs. We want to hop on board if SMG can hit our trigger to launch bullish positions at $41.85. More conservative traders may want to use a trigger above $42.00 instead. Our target is $44.85.

FYI: The Point & Figure chart for SMG is bullish with a long-term $54 target.

Trigger @ 41.85

Suggested Position: buy SMG stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

ADTRAN Inc. - ADTN - close: 20.29 change: -0.37

Stop Loss: 21.15
Target(s): 17.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 01, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 973 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
ADTN is in the wireless communications industry. The stock broke down from a multi-month trading range back in July on a worse than expected earnings report. Since then the oversold bounce from $20 back in late July has reversed. Now ADTN is testing round-number support at $20.00 again.

I am suggesting a trigger to open bearish positions at $19.85. If triggered we'll use a stop loss above Friday's high. Our target is $17.50.

FYI: The Point & Figure chart for ADTN is bearish with a long-term $10.00 target.

Trigger @ 19.85

Suggested Position: short ADTN stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Oct $19 PUT (ADTN1220v19) current ask $1.00

Annotated chart:



Robert Half Intl. - RHI - close: 26.30 change: -0.21

Stop Loss: 26.85
Target(s): 22.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 01, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
RHI provides staffing, outsourcing, and temporary office help. The stock has been churning inside a wide $26-29 trading range for months. If you look closely RHI has a bearish trend of lower highs. Now shares look poised to breakdown under major support at $26.00.

The August 28th low was $25.83. I am suggesting a trigger to open bearish positions at $25.75. We'll use a stop loss at $26.85. Our multi-week target is $22.50.

FYI: The Point & Figure chart for RHI is bearish with a $20.00 target.

Trigger @ 25.75

Suggested Position: short RHI stock @ (trigger)

Annotated chart: