BULLISH Play Updates

A.O.Smith Corp. - AOS - close: 31.04 change: -0.83 stop: 29.75

The market's widespread decline produced a 2.6% loss in AOS. I'd focus on the lower entry point. Currently we have two potential entry points to buy AOS. One is a dip into the $30.25-30.00 zone. The other is a breakout higher at $32.60. I'm adjusting our stop loss down to 29.75. If triggered at either our first target is $34.95. Our second target is $37.00.

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/16/09 (unconfirmed)    
Average Daily Volume:       195 thousand
Listed on  June 20, 2009    


Bank of America - BAC - close: 11.94 change: -1.28 stop: 11.85

Financial stocks were crushed today. The BKX banking index lost 6.6% and the BIX banking index lost 6.1%. Shares of BAC under performed with a 9.6% plunge toward recent support near $12.00. Investors may have been a little fearful after learning that two board members resigned. Shares of BAC are also up about 300% off their 2009 lows so investors want to lock in profits. If there is any follow through tomorrow we'll be stopped out at $11.85. I hesitate to buy this dip considering the extreme weakness in the market today. FYI: I also heard that BAC is in the process of converting up to $2 billion in debt to common stock, which could have pressured the stock price today.

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.

Entry on      June 04 at $12.24 /gap higher entry
                              /listed at $11.87
Change since picked:     - 0.28   			
Earnings Date          07/20/09 (unconfirmed)    
Average Daily Volume:       537 million 
Listed on   May 19, 2009    


Dell Inc. - DELL - close: 12.98 change: -0.31 stop: 11.70

DELL tagged resistance at $13.50 again this morning before sliding lower. Today's failed rally builds on the potential bearish double top at the $13.50 level. I would expect a dip toward $12.50 at a minimum and probably toward $12.00. Wait for the dip near $12.00 as our next entry point. Our first target is $14.90.

Entry on      June 09 at $12.55 
Change since picked:     + 0.43   			
Earnings Date          08/27/09 (unconfirmed)    
Average Daily Volume:        29 million 
Listed on  June 06, 2009    


3x Energy Bear ETF- ERY - close: 24.29 change: +3.09 stop: 15.99

Target achieved. The front month July oil futures expired today and they plunged more than 4%. The rest of the oil sector was hit worse. Shares of ERY soared 14.5% and hit $24.32 and its 50-dma. Our first target to take profits was $24.00. I'm moving our stop loss to $19.95. Our second target to exit completely is $27.50. More aggressive traders may want to aim for the $30.00 region.

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. 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.

chart:

Entry on      June 16 at $20.10 /gap higher entry
                              /originally listed t $19.68
Change since picked:     + 4.19
                              /1st target hit @ 24.00 (+19.4%)
Earnings Date          00/00/00 
Average Daily Volume:       2.7 million 
Listed on  June 16, 2009    


PerkinElmer Inc. - PKI - close: 17.47 change: -0.52 stop: 16.45

We were expecting a pull back in PKI but the market's weakness is worrisome. Our plan is to buy PKI in the $17.15-17.00 zone but readers may want to wait and not open new bullish positions if the S&P 500 keeps falling (or you could raise your stop toward $16.75 to further reduce your risk). Our first target is $19.45.

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       1.1 million 
Listed on  June 20, 2009    


Pharma Prod. Dev. - PPDI - close: 22.48 chg: -0.72 stop: 21.75

I'm suggesting traders turn more defensive here on PPDI. The action over the last three days has switched from a bullish breakout to a potential three-day bearish reversal pattern. Today's close back under the 100-dma is bearish. I fully expect a dip toward the 10-dma (22.25) or the $22.00 level. I'm not suggesting new bullish positions at this time. Our first target is $25.90 (or its 200-dma). FYI: The Point & Figure chart is bullish with a $31.00 target.

Entry on      June 18 at $23.38 /gap higher entry
                              /originally listed at $23.05
Change since picked:     - 0.90   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on  June 18, 2009    


Wellpoint Inc. - WLP - close: 48.82 change: -2.11 stop: 47.25

Our new play on WLP is now open. Shares did pull back toward what should have been support at $49.00. Our trigger to buy WLP was $49.25. The market's decline was a bit overwhelming and WLP actually closed under the $49.00 level. That's a bit concerning. I would consider buying a bounce from $47.50 but otherwise wait for signs of strength. Our first target is $54.00. Our second target is $57.40.

chart:

Entry on      June 22 at $49.25 *triggered       
Change since picked:     - 0.43   			
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       4.4 million 
Listed on  June 20, 2009    


BEARISH Play Updates

DuPont - DD - close: 24.10 change: -0.87 stop: 27.65

DD has failed to bounce. The stock lost 3.4% and closed under its 100-dma. It's time to start thinking about adjusting our stop loss lower. Our first target $22.25. Our second target is $20.25.

Entry on      June 16 at $25.20 
Change since picked:     - 1.10   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       9.1 million 
Listed on  June 16, 2009    


Gamestop - GME - close: 21.96 change: -0.99 stop: 25.65 *new*

Target achieved. GME hit $21.94 intraday. Our first target to take profits was $22.05. I'm lowering the stop loss to $25.65. I'm not suggesting new positions at this time. We still have two targets let. We want to take more money off the table at $20.25. Our third targetis $18.15.

chart:

Entry on      June 02 at $24.32 
Change since picked:     - 2.36
                              /1st target hit @ 22.05 (-9.3%)
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       6.3 million 
Listed on  June 02, 2009    


iShares Materials - MXI - close: 44.41 change: -2.69 stop: 48.55 *new*

Commodity and material stocks were crushed today. The MXI gave up 5.7% and broke down under its exponential 200-dma and its rising 50-dma. This ETF almost hit our first target. Readers may want to start profit taking now. I'm adjusting our stop loss to $48.55. Our first target is $44.00. Our second target is $41.00.

Entry on      June 16 at $47.55 
Change since picked:     - 3.14   			
Earnings Date          00/00/00 
Average Daily Volume:       170 thousand
Listed on  June 16, 2009    


Pulte Homes - PHM - close: 8.77 change: -0.01 stop: 9.75

The homebuilders could see some volatility this week. Investors will be eager to see the latest new home sales and existing home sales figures for the last month. 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.

Entry on       May 20 at $ 9.38 /gap down entry
                              /originally listed at $9.52
Change since picked:     - 0.61   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:        11 million 
Listed on   May 20, 2009    


Homebuilders ETF - XHB - close: 11.21 change: -0.37 stop: 12.55 *new*

The XHB has now closed under technical support at its 100-dma. I am adjusting our stop loss to $12.55.

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

Entry on       May 23 at $11.96 
Change since picked:     - 0.75   			
Earnings Date          00/00/00
Average Daily Volume:        10 million 
Listed on   May 23, 2009    


CLOSED BULLISH PLAYS

Flextronics - FLEX - close: 3.97 change: -0.38 stop: 3.95 *new*

Ouch! Tech stocks were hit hard today. The NASDAQ lost 3.3%. The SOX gave up 3.7%. Yet FLEX sank more than 8.7%. I could not find any company specific news to account for the weakness. It looks like panicked profit taking. Our stop loss was hit at $3.95.

chart:

Entry on      June 10 at $ 4.35 
Change since picked:     - 0.40 <-- stopped @ 3.95 (-9.1%)
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       7.9 million 
Listed on  June 09, 2009    


JDS Uniphase - JDSU - close: 5.48 change: -0.09 stop: 5.45

As the tech sector broke lower JDSU helped lead the charge with a 6.6% sell-off. The stock broke down under potential support at its exponential 200-dma, at its 30-dma and at the $5.50 level. Our stop loss was hit at $5.45.

chart:

Entry on      June 01 at $ 5.65 *triggered       
Change since picked:     - 0.20<-- stopped out @ 5.45 (-3.5%)
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       3.6 million 
Listed on   May 30, 2009    


McDermott Intl. - MDR - close: 18.40 change: -2.14 stop: 19.35

The profit taking in MDR continued. Shares gapped open lower at $19.97 and quickly hit our stop loss at $19.35. Shares eventually broke technical support at the 50-dma. I'd keep an eye on MDR for possible strength near the $16-15 zone. FYI: The stock is now off more than 23% from its recent highs.

chart:

Entry on      June 17 at $20.12 
Change since picked:     - 0.77<-- stopped out @ 19.35 (-3.8%)
Earnings Date          08/11/09 (unconfirmed)    
Average Daily Volume:       3.9 million 
Listed on  June 17, 2009    


Southern Copper - PCU - close: 19.26 change: -2.08 stop: 19.85

Our buy the dip plan in PCU didn't work. Commodities were crushed as traders exited in a rush. PCU gapped open lower at $20.90 and quickly hit our stop loss at $19.85. Shares have now broken several layers of support.

chart:

Entry on      June 17 at $21.25 *triggered     
Change since picked:     - 1.40<-- stopped out @ 19.85 (-6.5%)
Earnings Date          07/20/09 (unconfirmed)    
Average Daily Volume:       4.1 million 
Listed on  June 01, 2009    


RTI Intl. Metals - RTI - close: 17.20 change: -2.10 stop: 17.99

Our aggressive trade in RTI has melted on us. Commodities were hit very hard and RTI has hit new relative lows tagging our stop loss at $17.99 in the process.

chart:

Entry on      June 18 at $20.35 /gap higher entry
                              /originally listed at $19.94
Change since picked:     - 2.36<-- stopped out @ 17.99 (-11.5%)
Earnings Date          07/28/09 (unconfirmed)    
Average Daily Volume:       913 thousand
Listed on  June 18, 2009    


Urban Outfitters - URBN - close: 20.47 chg: -1.08 stop: 19.95

Now that the market is breaking down owning retailers is not the best place to be. I'm suggesting an early exit out of URBN immediately. I might reconsider bullish positions on a bounce from support near $18.00.

chart:

Entry on      June 04 at $21.10 *triggered       
Change since picked:     - 0.63<-- early exit (-2.9%)
Earnings Date          08/13/09 (unconfirmed)    
Average Daily Volume:       4.8 million 
Listed on  June 01, 2009