BULLISH Play Updates

A.O.Smith Corp. - AOS - close: 32.39 change: +1.00 stop: 29.75

AOS surges another 3.1% and shares are pushing up against resistance near $32.50 now. Our first target is $34.95. Our second target is $37.00.

Entry on      June 23 at $30.25 *triggered       
Change since picked:     + 2.14   			
Earnings Date          07/16/09 (unconfirmed)    
Average Daily Volume:       195 thousand
Listed on  June 20, 2009    


Bank of America - BAC - close: 12.35 change: +0.00 stop: 11.85

The financial stocks lagged behind the rest of the market. BAC closed unchanged on the session but investors did buy the dip near $12.00 this morning. Investors may have decided to hold back and wait on new positions in BAC as lawmakers grilled Ben Bernanke over his role and the role of the Federal Reserve in BAC's acquisition of Merrill Lynch. In the mean time news has surfaced that BAC will raise another $4.1 billion above and beyond the $33.9 billion required by the government following the bank stress tests. The company is converting debt into common stock so that does put pressure on the price.

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:     + 0.11   			
Earnings Date          07/20/09 (unconfirmed)    
Average Daily Volume:       537 million 
Listed on   May 19, 2009    


Bally Tech. - BYI - close: 30.00 change: +1.37 stop: 27.45

BYI displayed some impressive strength with a 4.7% rally. The MACD indicator has turned positive and shares cleared recent resistance in the $29.70 region. The stock stalled right at round-number resistance at $30.00 and our play is still unopened. The plan is to buy BYI at $30.10. If triggered we want to take some profits at $32.90 and then again at $34.90.

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          08/19/09 (unconfirmed)    
Average Daily Volume:       859 thousand
Listed on  June 24, 2009    


Dell Inc. - DELL - close: 13.65 change: +0.37 stop: 11.70

DELL has rallied to new multi-month highs and broken through short-term resistance at $13.50. Our first target is $14.90.

Entry on      June 09 at $12.55 
Change since picked:     + 1.10   			
Earnings Date          08/27/09 (unconfirmed)    
Average Daily Volume:        29 million 
Listed on  June 06, 2009    


3x Energy Bear ETF- ERY - close: 22.12 change: -1.55 stop: 19.95

The ERY is contracting thanks to an oversold bounce in the oil sector. Readers may want to consider new bullish positions on a bounce near $20.00.

ERY has already hit our first target at $24.00. 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.

Entry on      June 16 at $20.10 /gap higher entry
                              /originally listed t $19.68
Change since picked:     + 2.02
                              /1st target hit @ 24.00 (+19.4%)
Earnings Date          00/00/00 
Average Daily Volume:       2.7 million 
Listed on  June 16, 2009    


Joy Global - JOYG - close: 36.72 change: +0.44 stop: 28.70

JOYG lagged the rally. Shares gained 1.2% but struggled with the $37.00 level all day long. Our plan is to buy JOYG on a dip at $31.00 but more aggressive traders may want to jump in on another dip near $33.00 instead. If triggered our first target is $36.40.

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          09/03/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  June 23, 2009    


Morgan Stanley - MS - close: 27.87 change: +0.22 stop: 26.95 *new*

Okay, I'm turning more aggressive on MS. Instead of waiting to buy a dip at $25.50 I'm suggesting we buy a breakout over $28.50. Our trigger will be $28.60. If triggered our target is $31.75. FYI: If MS does not breakout I would still buy a dip at $25.50.

Entry on      June xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          07/22/09 (unconfirmed)    
Average Daily Volume:      29.4 million 
Listed on  June 23, 2009    


Pharma Prod. Dev. - PPDI - close: 23.27 chg: +0.60 stop: 21.75

Once again PPDI bounced from the $22.30 region and shares closed with a 2.6% gain. I would use this bounce as a new bullish entry point. 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:     - 0.11   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on  June 18, 2009    


Western Digital - WDC - close: 25.58 chg: -0.18 stop: 23.95

Our play on WDC is now open. Shares hit $26.18 this morning but failed to hold the breakout over resistance at $26.00. That failure is a little worrisome. More aggressive traders may want to consider buying a bounce at $25.00 or $24.00. I am suggesting readers wait for a new move over $26.00 to initiate positions. Our trigger was $26.10. Our first target is $29.75.

chart:

Entry on      June 25 at $26.10 *triggered       
Change since picked:     - 0.52   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       4.6 million 
Listed on  June 24, 2009    


Wellpoint Inc. - WLP - close: 50.73 change: +1.37 stop: 47.25

WLP is bouncing back above round-number resistance at $50.00. More conservative traders might want to consider raising their stops toward $48.50. Our first target is $54.00. Our second target is $57.40.

Entry on      June 22 at $49.25 *triggered       
Change since picked:     + 1.48   			
Earnings Date          07/29/09 (unconfirmed)    
Average Daily Volume:       4.4 million 
Listed on  June 20, 2009    


BEARISH Play Updates

DuPont - DD - close: 25.29 change: +0.46 stop: 27.05

The oversold bounce in DD continues. Look for a failed rally near $26.00 as a potential entry point. Our first target $22.25. Our second target is $20.25.

Entry on      June 16 at $25.20 
Change since picked:     + 0.09   			
Earnings Date          07/21/09 (unconfirmed)    
Average Daily Volume:       9.1 million 
Listed on  June 16, 2009    


iShares Mexico - EWW - close: 36.63 change: +1.31 stop: 37.05

The rally today was almost global and all the major markets in North and South America were sharply higher. The EWW gained 3.7%. Wait for a failed rally near $37.00 before considering new positions. This ETF has cleared all of its overhead moving averages and more conservative trades may want to exit early right here. Our target is $30.25.

Entry on      June 22 at $34.92 
Change since picked:     + 1.71   			
Earnings Date          00/00/00 
Average Daily Volume:       3.9 million 
Listed on  June 22, 2009    


Gamestop - GME - close: 22.21 change: +0.38 stop: 25.05

GME is still trying to produce an oversold bounce but it's struggling. I'm not suggesting new positions at this time.

Our second target to take profits is $20.25. Our third target is $18.15.

Entry on      June 02 at $24.32 
Change since picked:     - 2.11
                              /1st target hit @ 22.05 (-9.3%)
Earnings Date          08/20/09 (unconfirmed)    
Average Daily Volume:       6.3 million 
Listed on  June 02, 2009    


Gen-Probe - GPRO - close: 43.64 change: +0.83 stop: 44.05

GPRO has rallied right to resistance at $44.00 and its 200-dma. If the market continues higher GRPO might be able to breakout. I'm not suggesting new positions at this time but more nimble traders can look for a failed rally to open positions. A drop under $43.00 or maybe $42.80 could work. Our first target is $38.05. Our second target is $35.25.

Entry on      June 23 at $42.03 /gap higher entry
                             /originally listed at $41.64
Change since picked:     + 1.61   			
Earnings Date          07/30/09 (unconfirmed)    
Average Daily Volume:       449 thousand
Listed on  June 23, 2009    


iShares Materials - MXI - close: 46.90 change: +1.04 stop: 48.55

Commodity and material-related stocks are continuing to bounce following the mid June sell-off. Wait and watch for a failed rally under $48.00 as a new entry point. Our second target is $41.00.

Entry on      June 16 at $47.55 
Change since picked:     - 0.65
                              /1st target hit 44.00 (-7.4%)
Earnings Date          00/00/00 
Average Daily Volume:       170 thousand
Listed on  June 16, 2009    


Pulte Homes - PHM - close: 8.96 change: +0.49 stop: 9.35 *new*

Homebuilders drew strength from news that Lennar Corp's (LEN) orders were up 63%. Shares of PHM gained 5.7% in what looks like a possible bullish reversal. The stock is still holding under resistance near $9.00. More conservative traders may want to ratchet down their stops near $9.00. I'm moving the stop to $9.35. 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:     - 0.42   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:        11 million 
Listed on   May 20, 2009    


Raytheon - RTN - close: 45.12 change: +0.90 stop: 46.55

The market's widespread bounce lifted the defense stocks and RTN gained 2%. Shares are testing short-term overhead resistance near $45.00. If the bounce continues we can watch for a failed rally near $46.00 as a new entry point. I do see some support near $42.00 but our first target is $40.25. The P&F chart is very bearish with a $13 target.

Entry on      June 24 at $44.22 
Change since picked:     + 0.90   			
Earnings Date          07/23/09 (unconfirmed)    
Average Daily Volume:       3.5 million 
Listed on  June 24, 2009    


Homebuilders ETF - XHB - close: 11.91 change: +0.58 stop: 12.55

I suspect there was a lot of short covering in the 5.1% rally for the XHB today. This ETF is nearing potential resistance near $12.00. More conservative traders may want to lower their stops toward the $12.00 level. I'm not suggesting new positions at this time.

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:     - 0.05   			
Earnings Date          00/00/00
Average Daily Volume:        10 million 
Listed on   May 23, 2009