If the market does contract this week I've outlined where to look for entry points.


BULLISH Play Updates

Agrium Inc. - AGU - close: 53.55 change: +0.26 stop: 48.90 *new*

AGU still looks strong above $50.00 but it has yet to breakout over its May 2009 highs. I would expect another dip toward $50.00, especially if the S&P 500 dips. I'm raising our stop loss to $48.90. Our first target is $54.75. Our second target is $59.75. Currently the Point & Figure chart is bullish with a $59 target.

FYI: Agrium (AGU) is trying to buy rival firm CF Industries (CF) but CF keeps rejecting the offer calling it too low. At the same time CF is trying to buy Terra Industries (TRA) and TRA keeps rejecting the offer calling it too low. Eventually one of these companies is going to give up or they're finally going to make a big enough offer or somebody else might step in and start bidding. There is a risk that someone bids too much and the market could think they overpaid, which might push the stock lower. This M&A dance has been going on for months and it will probably continue for months so I'm not expecting it to have much short-term impact on the stock.

Annotated chart:

Entry on September 08 at $50.65 /gap higher entry  
Change since picked:     + 2.90   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       1.9 million 
Listed on September 05, 2009    


BE Aerospace - BEAV - close: 19.81 change: +0.13 stop: 17.45

BEAV is holding up reasonably well but it's still struggling with resistance near $20.00. I am not suggesting new positions at this moment. Look for a dip towards $18.50. Our first target is $22.25.

Annotated chart:

Entry on September 12 at $19.19 
Change since picked:     + 0.62   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       834 thousand
Listed on September 12, 2009    


China Mobile Ltd. - CHL - close: 50.28 chg: +0.11 stop: 47.90

CHL is still hovering near the $50.00 level. I don't see any changes from my prior comments. We can still buy bounces in the $50-48 zone or if you prefer more upward momentum look for a move over $51.00 again. Our first target is $54.00. Our second target is $58.00. Our time frame is several weeks.

Annotated chart:

Entry on    August 31 at $48.73 /gap down entry point
Change since picked:     + 1.55  			
Earnings Date          00/00/?? (unconfirmed)    
Average Daily Volume:       2.3 million 
Listed on  August 29, 2009    


Carpenter Tech. - CRS - close: 25.10 change: -0.29 stop: 21.45

CRS has been a great performer with a 30% rally off its September lows. Now shares are overbought and starting to correct. I wouldn't be surprised to see a dip back toward $23.00 or $22.00. I'm not suggesting new bullish positions at this time. CRS has already hit our first target. Our secondary target is $27.40.

Annotated chart:

Entry on September 05 at $21.45 /gap higher entry
                             /originally listed at $20.92
Change since picked:     + 3.65
                             /1st target hit @ 24.90 (+16.0%)
Earnings Date          10/28/09 (unconfirmed)    
Average Daily Volume:       536 thousand
Listed on September 05, 2009    


Darden Restaurants - DRI - close: 37.12 chg: +0.48 stop: 33.95 *new*

DRI continues to show strength with another new relative high. The stock is short-term overbought and I'd look for a dip back toward $35.00, which should be new support. I am raising our stop loss to $33.95. Our first target is the $39.40 mark.

FYI: Earnings are coming up at the end of September. We do not want to hold over the report.

Annotated chart:

Entry on September 05 at $34.82 
                              /originally listed at $34.41
Change since picked:     + 2.30   			
Earnings Date          09/29/09 (unconfirmed)    
Average Daily Volume:       2.6 million 
Listed on September 05, 2009    


E M C Corp. - EMC - close: 17.00 change: +0.02 stop: 15.24

EMC has been stalled near the $17.00 level for more than a week now. If the S&P 500 corrects any we have a good chance of being triggered. Currently the plan is to buy EMC on a dip at $15.75. We'll use a stop loss under the September low. Our target to exit is $18.00. We'll plan to exit ahead of the late October earnings report.

Annotated chart:

Entry on September xx at $xx.xx <-- TRIGGER @ 15.75
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:      19.6 million 
Listed on September 09, 2009    


General Electric - GE - close: 16.50 change: -0.16 stop: 14.75 *new*

I'm not surprised to see GE suffer another round of profit taking after its big move earlier in the week. Broken resistance near $15.00 should be support. I'm inching the stop loss up to $14.75. GE has already hit our first target. We're currently aiming for $18.50. I do consider this an aggressive trade so we want to keep our positions small.

Annotated chart:

Entry on September 14 at $15.49 /gap higher entry
                             /originally listed at $15.35
Change since picked:     + 1.01
                            /1st target hit @ 17.25 (+11.3%)
Earnings Date          10/16/09 (confirmed)    
Average Daily Volume:        83 million 
Listed on September 14, 2009    


IDEX Corp. - IEX - close: 28.67 change: +0.01 stop: 26.75

Nothing has changed from my Thursday comments. IEX still looks poised to correct toward $28.00 and probably the 50-dma near $27.00. I'm not suggesting new positions at this time. Our first target has still not been hit at $29.85. Our second target is $32.00. The P&F chart is forecasting a $39 target.

Annotated chart:

Entry on    August 17 at $26.10 *triggered         
Change since picked:     + 2.57   			
Earnings Date          07/20/09 (confirmed)    
Average Daily Volume:       570 thousand
Listed on  July 25, 2009    


J.P.Morgan Chase - JPM - close: 44.95 change: -0.01 stop: 39.90

JPM managed another new high on Friday at $45.34. I suspect the stock is due for another dip towards $43.50. I would consider new positions near $43.50-43.00.

Our plan was to use smaller position sizes (1/2 to 1/4 our normal size). Our target is $47.40 but we'll exit ahead of the mid October earnings report.

Annotated chart:

Entry on    August 21 at $43.50 *triggered (1/2 to 1/4 normal size)
Change since picked:     + 1.45   			
Earnings Date          10/14/09 (confirmed)    
Average Daily Volume:        55 million 
Listed on  July 18, 2009    


Kirby Corp. - KEX - close: 37.78 change: -0.22 stop: 35.25

KEX is starting to slip from its 38-39 trading range. We've been expecting a dip toward the $37-36 zone. I would wait for a bounce before launching new positions. Our first target to take profits is at $39.95. Our second and final target is $42.40. FYI: The P&F chart is bullish with a $57 target.

Annotated chart:

Entry on September 08 at $37.70 /triggered/gap higher entry
Change since picked:     + 0.08   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       310 thousand
Listed on September 05, 2009    


Koppers Holdings - KOP - close: 32.24 change: -0.32 stop: 27.45

KOP produced a huge breakout to new highs last week. We want to buy a pull back. I'm suggesting readers buy a dip at $30.10. We'll use a stop loss at $27.45. Our first target is $34.50. Our second target is $37.50 but it could take several weeks to get there. FYI: The P&F chart has a new triple-top breakout buy signal.

Annotated chart:

Entry on September xx at $xx.xx <-- TRIGGER @ 30.10
Change since picked:     + 0.00   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       159 thousand
Listed on September 16, 2009    


Microsoft - MSFT - close: 25.26 change: -0.04 stop: 22.95

There is no change from my previous comments on MSFT. I would consider new bullish entries on a dip near $24.00 or its 50-dma (currently 24.15). Our target is $27.75.

Annotated chart:

Entry on      July 27 at $23.00
Change since picked:     + 2.26   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009    


Pride Intl. Inc. - PDE - close: 29.77 change: -0.42 stop: 26.40

After a huge rally off its late August lows PDE is reversing. The stock should find support in the $27.50-27.00 zone. A dip near $27.00 would be a 61.8% Fibonacci retracement of the rally. The plan is to buy PDE at $27.65. Our first target is $30.45. Our second target is $33.45. We'll plan to exit ahead of the late October earnings report.

Annotated chart:

Entry on September xx at $xx.xx <-- see TRIGGER @ 27.65
Change since picked:     + 0.00   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       3.7 million 
Listed on September 12, 2009    


Playboy Ent. - PLA - close: 3.08 change: +0.05 stop: 2.55 *new*

Thus far PLA has been able to hold on to the $3.00 level. However, if the market corrects I would expect a dip toward the $2.80-2.60 zone. Readers can use a bounce in that area as a new bullish entry point. Our second target remains the $3.95 level. Please note our new stop loss at $2.55. FYI: The Point & Figure chart is bullish with a long-term $7.50 target.

Annotated chart:

Entry on September 01 at $ 2.65
Change since picked:     + 0.43
                            /take profits 09/16/09 (+17.7%)
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       370 thousand
Listed on  August 29, 2009    


Rockwell Automation - ROK - close: 44.19 change: +0.07 stop: 39.95

ROK is still hovering under resistance at $45.00. The market is short-term overbought and when it pulls back I would expect ROK to dip towards $42.00 or lower. Wait for a bounce as our next entry point. Our first target is the $49.00 mark. Our time frame is several weeks. FYI: The Point & Figure chart is bullish with a $61 target.

Annotated chart:

Entry on September 10 at $43.71 /gap higher entry
                           /originally listed at $43.15
Change since picked:     + 0.48   			
Earnings Date          11/10/09 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on September 10, 2009    


Schlumberger - SLB - close: 61.85 change: +0.06 stop: 56.95

We need to keep an eye on the dollar-oil relationship. If the dollar bounces oil will most likely slip lower and that will put pressure on the oil service stocks. Broken resistance near $58.00 should offer some support. I'm not suggesting new positions at this time. The stock has already hit our first target. Our second target is $67.50.

Annotated chart:

Entry on September 05 at $56.93 /gap higher entry
                             /originally listed at $55.87
Change since picked:     + 4.92
                             /1st target hit @ 62.50 (+9.7%)
Earnings Date          10/23/09 (unconfirmed)    
Average Daily Volume:       8.7 million 
Listed on September 05, 2009    


TEVA Pharmaceuticals - TEVA - close: 51.88 change: +1.07 stop: 49.75

TEVA showed some relative strength on Friday with a 2.1% gain. The stock is challenging short-term resistance near $52.10. There is also potential resistance near $52.60 at the top of its gap from September 14th but these should be short-term hurdles. Our first target is $54.75. Our second target is $59.50. Our time frame is eight to ten weeks.

Annotated chart:

Entry on    August 17 at $50.50 *triggered                
Change since picked:     + 0.31   			
Earnings Date          11/03/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  August 05, 2009    


Ultra(Long) Financials - UYG - close: 6.09 change: -0.02 stop: 5.40

Financials look short-term overbought and the UYG is poised to correct. I would expect a dip back toward the $5.50 zone. I'm not suggesting new positions at this time. UYG has already hit our first target. Our second target is $7.00.

This can be a very volatile security. It's not for the faint of heart.

Annotated chart:

Entry on September 03 at $ 5.29 
Change since picked:     + 0.80
                             /1st target hit @ 6.00 (+13.4%)
Earnings Date          00/00/00 
Average Daily Volume:      47.8 million 
Listed on September 03, 2009    


BEARISH Play Updates

*We currently do not have any bearish play updates*


CLOSED BULLISH PLAYS

Goldcorp Inc. - GG - close: 41.16 change: -0.96 stop: 37.75

Changing conditions between the dollar and gold have warranted an early exit out of GG. The longer-term trend is up but short-term I'm concerned that GG may correct back toward $37.50 and its 50-dma. I'd rather cut our losses now and move GG to the watch list for a better entry point later.

chart:

Entry on September 15 at $43.10 /gap higher entry
                            /originally listed at $42.28
Change since picked:     - 1.94   	early exit (-4.5%)
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       8.1 million 
Listed on September 15, 2009