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Play Updates

Gap Down Open

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Play Editor's Note: The gap down open this morning allowed for improved entry points on some of our bullish candidates.


BULLISH Play Updates

Allegheny Energy - AYE - close: 33.21 change: +0.18 stop: 30.85

AYE dipped to its 10-dma and bounced. The stock looks poised to rally from here. If you're feeling conservative you could raise your stop higher. Otherwise I don't see any changes from our previous comments.

We have two targets. Our first target is $34.95. Our second target is $38.50. The Point & Figure chart has turned bullish with a $52.00 target.

Picked on December 01 at $32.00 *triggered       
Change since picked:     + 1.21   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       2.8 million     


CIGNA - CI - close: 12.44 change: +0.45 stop: 10.99

As expected CI continued to rally. Except shares gapped down at the open this morning (11.73) allowing us a better entry point. We don't see any changes from our previous comments. The stock can be very volatile as evidenced by its big swings in October. We are suggesting readers buy CI here with a stop loss at $10.99 since $11.00 was support on Monday. Our target is $14.50.

Picked on December 02 at $11.73 /gap down entry
Change since picked:     + 0.71 /originally listed at $11.99
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       8.1 million     


Cognizant Tech. - CTSH - close: 18.77 change: +0.74 stop: 17.19

CTSH looks like it's coiling for a breakout higher. The stock gapped down at the open (17.41), which allowed us a better entry point for bullish positions. Traders bought the dip at its 10-dma and CTSH rallied to short-term resistance at its 50-dma. A continuation higher from here would be pretty bullish. More conservative traders may want to raise their stop toward today's low (17.37). We don't see any changes from our prior comments. Our target is the $20.85 mark.

Picked on December 02 at $17.41 /gap down entry 
Change since picked:     + 1.36 /originally listed at $18.03
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       6.2 million     


EBAY Inc. - EBAY - close: 13.63 change: +0.37 stop: 12.79

The action this morning was worrisome. EBAY almost hit our stop loss but managed to reverse higher at $12.85. On the positive side shares gapped open lower at $12.95, which provided us a better entry point to get long the stock. Traders bought the afternoon dip at $13.12 producing a short-term higher low. Our short-term target is $14.95.

Picked on December 02 at $12.95 /gap down entry
Change since picked:     + 0.68 /originally listed at $13.26
Earnings Date          01/22/09 (unconfirmed)    
Average Daily Volume:        21 million     


Emergent BioSolutions - EBS - close: 23.63 change: -0.61 stop: 19.45

The current rush into shares of EBS may be running out of steam. The stock spiked toward $26.00 this morning and then reversed sharply. This looks like a possible blow-off topping formation. Volume was pretty strong on the move. I would expect a correction from here. We're going to stick with our entry point for now.

We're suggesting readers buy EBS on a pull back into the $20.50-20.00 zone with a stop loss at $19.45. We have two targets. Our first target is $22.50. Our second target is $24.50. FYI: The Point & Figure chart is bullish with a $35 target.

Picked on November xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          03/05/09 (unconfirmed)    
Average Daily Volume:       626 thousand    


Expedia Inc. - EXPE - close: 7.70 change: +0.18 stop: 6.95

If you picked today to open positions in EXPE then things worked out pretty well. The stock gapped open lower at $7.00 and quickly rebounded. The stock closed the session up 10% from its intraday low. We would buy this bounce although readers might want to opt for a higher stop loss. I would not be surprised to see a dip back to the $7.60 or $7.50 levels before moving higher.

We have two targets. Our first target is $8.45. Our second target is $9.75. More aggressive traders may want to aim higher.

Picked on December 02 at $ 7.50 *triggered       
Change since picked:     + 0.20   			
Earnings Date          02/05/09 (unconfirmed)    
Average Daily Volume:       4.7 million     


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