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Long Play Updates

CSX Corp. - CSX - close: 43.56 change: -0.98 stop: 42.75

Most of the railroad stocks, while not immune to Friday's market weakness, performed better than the major averages. CSX lost 2.2% but is essentially still consolidating sideways. Nimble traders might want to try and buy a bounce near its rising 200-dma around $43.00. We're still suggesting that readers buy a breakout. We're suggesting a trigger to open positions at $45.25. If triggered our target is the $49.00-50.00 range. The Point & Figure chart points to a $61 target. FYI: Shares of BNI and UNP both look bullish as well. Keep an eye on them.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 01/22/08 (unconfirmed)
Average Daily Volume: 5.9 thousand

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CVS Caremark - CVS - cls: 41.56 change: -0.60 stop: 39.85

CVS doesn't look that bad here. The stock is trading near all-time highs and has a relatively consistent trend of higher lows. Our only concern is that Friday's session produced a bearish engulfing candlestick pattern. We are suggesting that readers either wait for a dip and a bounce near $41.00 or wait for a new relative high over $42.40 before initiating new positions. More conservative traders might want to consider a tighter stop loss near $40.50. Our target is the $45.85-46.00 range. Our time frame is year-end.

Picked on November 07 at $42.15
Change since picked: - 0.59
Earnings Date 11/01/07 (confirmed)
Average Daily Volume: 10.5 million

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Esterline Tech - ESL - cls: 54.00 change: +0.13 stop: 53.49

It doesn't look good for ESL. The stock has broken down from its sideways consolidation and broken below its rising 50-dma. Fortunately, we are still sitting on the sidelines waiting for a breakout over resistance near $55.00. We suspect that ESL will dip toward the 100-dma near $51.50 or the October low near $51.00. Nimble traders could try and buy a bounce if ESL does rebound near $51. We might suggest the same if the bounce looks convincing. Currently, our suggested trigger is at $55.51. Our target is the $59.00-60.00 range.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 12/06/07 (unconfirmed)
Average Daily Volume: 332 thousand

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Gerdau Sa ADS - GGB - close: 29.03 change: -0.86 stop: 27.90

The action in GGB has turned bearish. The stock has broken its trendline of higher lows (see chart) and is in the process of breaking down under what should have been support near $29.00. We would strongly consider an early exit right here. The only reason we are not exiting early is that the major indices are short-term oversold and could bounce on Monday. We are not suggesting new plays at this time. Our target is the $33.50-35.00 range.

Picked on October 28 at $30.37
Change since picked: - 1.34
Earnings Date 11/07/07 (confirmed)
Average Daily Volume: 2.3 million

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Companhia Vale Rio - RIO - cls: 35.70 change: -1.26 stop: 34.95

Brazilian metal titan RIO continues to trade sideways. Watch for a bounce near $35.00 as a new bullish entry point to buy the stock. Or if you prefer to buy on momentum then wait for a new relative high. We would expect some resistance near $40.00 but our year-end target is the $42.50-45.00 range. The P&F chart points to a $53 target.

Picked on November 06 at $37.75
Change since picked: - 2.05
Earnings Date 10/25/07 (confirmed)
Average Daily Volume: 24.6 million

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WMS Ind. - WMS - close: 35.03 chg: +0.06 stop: 32.39

WMS displayed some relative strength on Friday by posting a gain. We suggested that readers look for a bounce near $34.25 as a potential entry point and the low on Friday was $34.28. If you prefer to buy momentum then wait for a breakout over $36.00 again. Readers might want to tighten their stops! Our target is the $39.75-40.00 range. The P&F chart is very bullish with a $59 target.

Picked on November 08 at $36.11
Change since picked: - 1.08
Earnings Date 10/25/07 (unconfirmed)
Average Daily Volume: 630 thousand
 

Short Play Updates

NVE Corp. - NVEC - cls: 26.21 change: -0.75 stop: 28.76 *new*

NVEC sank to another new relative low with Friday's 2.78% decline. We are strongly suggesting that readers take some profits right here! While the bearish trend looks strong the stock is oversold. We are adjusting our stop loss to $28.76. We are not suggesting new positions at this time. Our target is the $25.50-25.00 range. The bearish head-and-shoulders pattern in the charts is forecasting a $20-18 target. FYI: We would consider this an aggressive play simply for the fact that NVEC's average daily volume is very low! However, the real risk is a short squeeze. The latest data puts short interest at close to 30% of NVEC's very, very small 4.2-million share float. That represents a big risk for a short squeeze.

Picked on October 22 at $29.30 *gap down entry
Change since picked: - 3.09
Earnings Date 10/17/07 (confirmed)
Average Daily Volume: 76 thousand
 

Closed Long Plays

Nokia - NOK - close: 37.94 change: -2.14 stop: 37.99

Another day of tech weakness and a big gap down in QCOM weighed heavily on shares of NOK. Shares of NOK gapped open lower at $39.04 and then traded under support near $38.00 hitting our stop and closing the play. Keep an eye on the 50-dma for potential support and a bounce.

Picked on November 06 at $40.59 *gap higher entry
Change since picked: - 2.65
Earnings Date 01/24/08 (unconfirmed)
Average Daily Volume: 13.1 million
 

Closed Short Plays

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