BULLISH Play Updates

Bank of America - BAC - close: 13.22 change: +0.32 stop: 11.85 *new*

Banking stocks continued to bounce on Friday and BAC helped lead the charge with a 2.4% gain. Last week's rebound from broken resistance and new support near $12.00 is certainly bullish but BAC has pretty heavy overhead resistance at its 200-dma and the $15.00 level. I would still consider new bullish positions on dips or bounces in the $12.25-12.00 zone. I'm upping our stop loss to $11.85.

The plan is to sell at least half to 75% of our position at $14.20 but we need to lower this to $14.00 because the 200-dma is falling so quickly. We want to take profits before BAC hits technical resistance at its 200-dma or at its May highs near $15.00. We'll plan on exiting completely at $16.45.

Annotated chart:

Entry on      June 04 at $12.24 /gap higher entry
                              /listed at $11.87
Change since picked:     + 0.98   			
Earnings Date          07/20/09 (unconfirmed)    
Average Daily Volume:       537 million 
Listed on   May 19, 2009    


Dell Inc. - DELL - close: 13.29 change: +0.68 stop: 11.70 *new*

It was a volatile option expiration Friday for DELL. Shares shot higher at the open and closed near its highs for a 5.3% gain. Volume was strong at almost 49 million shares. I am raising our stop loss to $11.70. Our first target is $14.90.

Annotated chart:

Entry on      June 09 at $12.55 
Change since picked:     + 0.74   			
Earnings Date          08/27/09 (unconfirmed)    
Average Daily Volume:        29 million 
Listed on  June 06, 2009    


3x Energy Bear ETF- ERY - close: 21.20 change: +0.42 stop: 15.99

I really want to remind readers that if you are trading ERY you have to be ready for some volatility. The short-term trend in the oil and oil service stocks is down. However, both of these indices are short-term oversold, falling hard last week. If they produce an oversold bounce then the ERY will contract lower. At this time it might be a better strategy to wait for a dip near $19.00 before launching new ERY positions.

This is a VERY volatile triple-leveraged ETF that moves higher as oil stocks move lower. The ERY moves based on the Russell 1000 Energy index. Our first target is $24.00. Our second target is $27.50. This is a very aggressive trade. I'm suggesting readers trade smaller than normal position sizes. More conservative traders may want to use a stop loss near $18.00.

Annotated chart:

Entry on      June 16 at $20.10 /gap higher entry
                              /originally listed t $19.68
Change since picked:     + 1.10   			
Earnings Date          00/00/00 
Average Daily Volume:       2.7 million 
Listed on  June 16, 2009    


Flextronics - FLEX - close: 4.35 change: +0.11 stop: 3.95 *new*

So far so good. The bounce in FLEX last week is a new entry point to buy the stock. I'm raising our stop loss to $3.95. If you're patient we might see another dip near $4.20 as an entry point. Our first target for FLEX is $5.50.

Annotated chart:

Entry on      June 10 at $ 4.35 
Change since picked:     + 0.00   			
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       7.9 million 
Listed on  June 09, 2009    


JDS Uniphase - JDSU - close: 5.87 change: -0.09 stop: 5.45

JDSU ran into a little profit taking on Friday. Shares have been struggling with the $6.00 level lately. Readers might want to wait for a dip near $5.50 before considering new bullish positions.

Our first target to take profits is $6.40. Our second target is $7.40. My time frame is six to eight weeks. FYI: The Point & Figure chart is bullish with a $10.00 target.

Annotated chart:

Entry on      June 01 at $ 5.65 *triggered       
Change since picked:     + 0.22   			
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       3.6 million 
Listed on   May 30, 2009    


McDermott Intl. - MDR - close: 20.54 change: +0.34 stop: 19.35

MDR is still trying to bounce form the $20.00 level. After the recent correction shares still look short-term oversold. We have a tight stop under last week's low so I'm still suggesting new bullish positions here or on a dip near $20.00. More aggressive traders may want to use a wider stop. Our first target is $23.90.

Annotated chart:

Entry on      June 17 at $20.12 
Change since picked:     + 0.42   			
Earnings Date          08/11/09 (unconfirmed)    
Average Daily Volume:       3.9 million 
Listed on  June 17, 2009    


Southern Copper - PCU - close: 21.34 change: -0.10 stop: 19.85

The sell-off in copper futures has stalled near but not yet at its bullish trend of higher lows. So the correction may not yet be over. Still it's close enough that I would buy PCU right here. If you're patient the stock might pull back closer to the $20.00 level. Our first target is $24.45. Our second target is $26.75 but we may not have time. The plan is to exit before the late July earnings report.

Annotated chart:

Entry on      June 17 at $21.25 *triggered     
Change since picked:     + 0.09   			
Earnings Date          07/20/09 (unconfirmed)    
Average Daily Volume:       4.1 million 
Listed on  June 01, 2009    


Pharma Prod. Dev. - PPDI - close: 23.20 chg: +0.15 stop: 21.75

PPDI continued to rally but the rally was so strong Friday morning shares gapped open higher. We've adjusted our entry point for the open at $23.38. I don't see any changes from my Thursday night comments. The stock is breaking out from a three-day consolidation and past technical resistance at the 100-dma. If you don't want to chase it here then look for a dip back toward the rising 10-dma near $22.00. Our first target is $25.90 (or its 200-dma). FYI: The Point & Figure chart is bullish with a $31.00 target.

Annotated chart:

Entry on      June 18 at $23.38 /gap higher entry
                              /originally listed at $23.05
Change since picked:     - 0.18   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on  June 18, 2009    


RTI Intl. Metals - RTI - close: 19.30 change: -0.64 stop: 17.99

Our aggressive, higher-risk trade on RTI displayed some volatility on Friday. The stock gapped open at $20.35 but quickly reversed. The move looks like a failed rally near its 10-dma, which is short-term bearish. I am suggesting readers look for a dip near $18.50-18.00 as our next entry point to buy RTI.

There is resistance near $22.50. I'm listing our first target to take profits at $22.40. Our second target is $24.75. FYI: The P&F chart is bullish with a $25 target. I want to reiterate that this is an aggressive, higher-risk trade.

Annotated chart:

Entry on      June 18 at $20.35 /gap higher entry
                              /originally listed at $19.94
Change since picked:     - 1.05   			
Earnings Date          07/28/09 (unconfirmed)    
Average Daily Volume:       913 thousand
Listed on  June 18, 2009    


Urban Outfitters - URBN - close: 21.55 chg: +0.73 stop: 19.95

URBN is showing some relative strength with a 3.5% gain on Friday. The stock continues to rebound off last week's test of support near $20.00. The move looks like a new entry point to buy the stock if you were waiting for some confirmation of the bounce. Our first target is $23.45. Our second target is $25.75.

Annotated chart:

Entry on      June 04 at $21.10 *triggered       
Change since picked:     - 0.28   			
Earnings Date          08/13/09 (unconfirmed)    
Average Daily Volume:       4.8 million 
Listed on  June 01, 2009    


BEARISH Play Updates

DuPont - DD - close: 24.97 change: -0.20 stop: 27.65

Shares of DD have been pinned to the $25.00 level these last few days as investors wait for option expiration. Now that expiration is over shares will be free to move again. Currently DD is testing technical support at its 100-dma so I would expect a bounce but a failed rally under $27.00 can be used as a new bearish entry point. Our first target $22.25. Our second target is $20.25.

Annotated chart:

Entry on      June 16 at $25.20 
Change since picked:     - 0.23   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       9.1 million 
Listed on  June 16, 2009    


Gamestop - GME - close: 22.95 change: +0.15 stop: 26.26

GME produced a minor oversold bounce but it failed several times near $23.20. The MACD has produced a new sell signal. The trend is still lower but I'm not suggesting new positions at this time. More conservative traders may want to lower their stops toward $25.50 or $25.00.

GME does have some support at $22.00. I would go ahead and take some money off the table at $22.05 but I expect this stock to trade much lower. Our second target is $20.25. I'm setting a third target at $18.15.

Annotated chart:

Entry on      June 02 at $24.32 
Change since picked:     - 1.37   			
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       6.3 million 
Listed on  June 02, 2009    


iShares Materials - MXI - close: 47.10 change: +0.75 stop: 50.55

After the sharp correction in the MXI last week a little oversold bounce isn't a surprise. The bounce probably isn't over yet. Readers can look for a bounce or a failed rally near $48.00 or its simple 10-dma as a new entry point for bearish positions. Our first target is $44.00. Our second target is $41.00.

Annotated chart:

Entry on      June 16 at $47.55 
Change since picked:     - 0.45   			
Earnings Date          00/00/00 
Average Daily Volume:       170 thousand
Listed on  June 16, 2009    


Pulte Homes - PHM - close: 8.78 change: +0.21 stop: 9.75 *new*

PHM spent most of last week churning sideways between $8.50 and $9.00. I'm lowering our stop loss to $9.75. More conservative traders may want to adjust theirs toward $9.50. I'm not suggesting new positions at this time.

Our target to exit is $7.25. More conservative traders may want to exit at $7.80 instead.

Annotated chart:

Entry on       May 20 at $ 9.38 /gap down entry
                              /originally listed at $9.52
Change since picked:     - 0.60   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:        11 million 
Listed on   May 20, 2009    


Homebuilders ETF - XHB - close: 11.58 change: +0.15 stop: 12.85

The XHB looks a little short-term oversold so we can probably expect a bounce back toward $12.00 or its 30-dma before it rolls over again. Wait for that failed rally before considering new positions.

Our target is $10.10. I am tempted to set a longer-term target in the $9.00-8.00 region.

Annotated chart:

Entry on       May 23 at $11.96 
Change since picked:     - 0.38   			
Earnings Date          00/00/00 
Average Daily Volume:        10 million 
Listed on   May 23, 2009    


CLOSED BULLISH PLAYS

Dollar Tree Inc. - DLTR - close: 42.17 chg: +0.44 stop: 42.95

DLTR has been under performing and following the rest of the retail sector lower these past three weeks. Shares are currently consolidating near their 100-dma. Aggressive traders may want to consider positions here with a tight stop. I'm dropping DLTR as a bullish candidate. Our plan was to buy a breakout over $45.00 but it could be a while before that happens.

chart:

*New Entry Point - trigger 45.15*
Entry on      June xx at $xx.xx <--trigger 45.15
Change since picked:     + 0.00               *never opened*
Earnings Date          08/27/09 (unconfirmed)    
Average Daily Volume:       1.8 million 
Listed on  June 02, 2009 


Sasol Ltd - SSL - close: 34.18 change: -2.00 stop: 35.95

Ouch! It was an ugly day for SSL but I'm surprised it wasn't worse. The company came out and warned that fiscal year 2009 would be 40 to 50% worse than 2008. The stock gapped open lower at $34.55, which was under our stop loss at $35.95. Our play ended immediately. The stock sank to technical support at its 50-dma and exponential 200-dma for a 5.5% loss. Considering a -50% forecast for earnings I'm surprised the sell-off wasn't worse.

chart:

Entry on      June 10 at $38.67 
Change since picked:     - 4.12 /gap down exit @ 34.55 (-10.6%)
                          /gapped under our stop loss 
Earnings Date          09/14/09 (unconfirmed)    
Average Daily Volume:       526 thousand
Listed on  June 10, 2009