With so much money looking to buy the dip the market's pullback will not have much depth.


BULLISH Play Updates

Agrium Inc. - AGU - close: 51.66 change: -1.89 stop: 48.90

AGU gapped down on Monday but spent the rest of the session drifting sideways. I warned readers to look for a dip toward $50.00. It can still happen. Wait for a bounce near $50.00 as a new bullish entry point. 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.

Entry on September 08 at $50.65 /gap higher entry  
Change since picked:     + 1.01   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       1.9 million 
Listed on September 05, 2009    


Airgas Inc. - ARG - close: 49.69 change: -0.15 stop: 44.75

Nothing has changed for us with ARG. I'm suggesting readers buy ARG on a dip at $47.25. If triggered our first target is $52.45. Our second target is $54.85. More aggressive traders could aim higher. The Point & Figure chart is bullish and predicting a $74 target.

Entry on September xx at $xx.xx <-- TRIGGER @ 47.25
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on September 19, 2009    


BE Aerospace - BEAV - close: 20.24 change: +0.43 stop: 17.45

BEAV displayed relative strength with a 2.1% gain and a close over round-number resistance at $20.00. I am not suggesting new positions at this moment. Look for a dip towards $18.50. Our first target is $22.25.

Entry on September 12 at $19.19 
Change since picked:     + 1.05   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       834 thousand
Listed on September 12, 2009    


China Mobile Ltd. - CHL - close: 50.64 chg: +0.36 stop: 47.90

CHL showed relative strength on Monday. Yet I still 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.

Entry on    August 31 at $48.73 /gap down entry point
Change since picked:     + 1.91  			
Earnings Date          00/00/?? (unconfirmed)    
Average Daily Volume:       2.3 million 
Listed on  August 29, 2009    


Carpenter Tech. - CRS - close: 24.42 change: -0.68 stop: 21.45

Traders bought the dip when CRS hit a 10% pull back from its recent high. I doubt the pull back is over though. I'm not suggesting new bullish positions at this time. CRS has already hit our first target. Our secondary target is $27.40.

Entry on September 05 at $21.45 /gap higher entry
                             /originally listed at $20.92
Change since picked:     + 2.97
                             /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: 36.72 chg: -0.40 stop: 33.95

Nothing has changed for us. 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.

Entry on September 05 at $34.82 
                              /originally listed at $34.41
Change since picked:     + 1.90   			
Earnings Date          09/29/09 (unconfirmed)    
Average Daily Volume:       2.6 million 
Listed on September 05, 2009    


E M C Corp. - EMC - close: 16.85 change: -0.15 stop: 15.24

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.

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: 16.76 change: +0.26 stop: 14.75

The relative strength in GE today is encouraging but I wouldn't buy the bounce yet. 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.

Entry on September 14 at $15.49 /gap higher entry
                             /originally listed at $15.35
Change since picked:     + 1.27
                            /1st target hit @ 17.25 (+11.3%)
Earnings Date          10/16/09 (confirmed)    
Average Daily Volume:        83 million 
Listed on September 14, 2009    


Starwood Hotels - HOT - close: 32.85 change: -1.24 stop: 28.95

HOT is pulling back and we are looking for a dip toward $30.00. I'm suggesting readers buy HOT on a dip at $30.50. If triggered our first target is $34.00. Our second target is $37.50. FYI: the Point & Figure chart is bullish with a $53 target. Plus HOT has above average short interest (more than 15% of the float) that can keep the rally going as bears cover their positions.

Entry on September xx at $xx.xx <-- TRIGGER @ 30.50
Change since picked:     + 0.00   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       3.4 million 
Listed on September 19, 2009    


IDEX Corp. - IEX - close: 28.28 change: -0.39 stop: 26.75

IEX is still retreating but it's holding above the $28.00 level for now. 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.

Entry on    August 17 at $26.10 *triggered         
Change since picked:     + 2.18   			
Earnings Date          07/20/09 (confirmed)    
Average Daily Volume:       570 thousand
Listed on  July 25, 2009    


J.P.Morgan Chase - JPM - close: 44.55 change: -0.40 stop: 39.90

Financials led the profit taking in Europe but the selling pressure for the sector was not so bad here in the states. 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.

Entry on    August 21 at $43.50 *triggered (1/2 to 1/4 normal size)
Change since picked:     + 1.05   			
Earnings Date          10/14/09 (confirmed)    
Average Daily Volume:        55 million 
Listed on  July 18, 2009    


Kirby Corp. - KEX - close: 37.63 change: -0.15 stop: 35.25

KEX tested the $37.00 level and its 30-dma this morning. Readers can use this bounce as a new entry point or wait for a pull back close to $36.00. 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.

Entry on September 08 at $37.70 /triggered/gap higher entry
Change since picked:     - 0.07   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       310 thousand
Listed on September 05, 2009    


Koppers Holdings - KOP - close: 31.99 change: -0.25 stop: 27.45

Our plan is unchanged. 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.

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: 25.30 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:
%IMG12%

Entry on      July 27 at $23.00
Change since picked:     + 2.30   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009    


Pride Intl. Inc. - PDE - close: 30.22 change: +0.45 stop: 26.40

The relative strength in PDE today is surprising given the weakness in crude oil on Monday. We still don't want to chase it. A dip near $27.00 would be a 61.8% Fibonacci retracement of the August-September 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.

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: 3.06 change: -0.02 stop: 2.55

PLA acts like it wants to pull back further. 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.

Entry on September 01 at $ 2.65
Change since picked:     + 0.39
                            /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: 43.74 change: -0.45 stop: 39.95

The pull back in ROK is normal. My only concern here would be the bearish divergence between last week's new high in ROK's price and a lower high in its daily chart's MACD indicator. I 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.

Entry on September 10 at $43.71 /gap higher entry
                           /originally listed at $43.15
Change since picked:     + 0.03   			
Earnings Date          11/10/09 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on September 10, 2009    


Schlumberger - SLB - close: 60.79 change: -1.06 stop: 56.95

Crude oil was down sharply thanks to dollar strength and oil stocks suffered. SLB gave up 1.7%. 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.

Entry on September 05 at $56.93 /gap higher entry
                             /originally listed at $55.87
Change since picked:     + 3.86
                             /1st target hit @ 62.50 (+9.7%)
Earnings Date          10/23/09 (unconfirmed)    
Average Daily Volume:       8.7 million 
Listed on September 05, 2009    


Market Vectors: Steel - SLX - close: 53.63 change: -0.57 stop: 47.49

So far so good. We want to see SLX correct back toward support. I'm suggesting readers buy the SLX at $50.25. We'll use a stop loss at $47.49 just in case it tries to fill the gap from September 8th. If triggered our first target is $54.75. Our second target is $59.50. Our time frame is several weeks.

Entry on September xx at $xx.xx <-- TRIGGER @ 50.25
Change since picked:     + 0.00   			
Earnings Date          00/00/00 
Average Daily Volume:       309 thousand
Listed on September 19, 2009    


TEVA Pharmaceuticals - TEVA - close: 51.82 change: -0.06 stop: 49.75

With the market going nowhere on Monday shares of TEVA flirted with short-term resistance at $52.00. Our first target is $54.75. Our second target is $59.50. Our time frame is eight to ten weeks.

Entry on    August 17 at $50.50 *triggered                
Change since picked:     + 0.25   			
Earnings Date          11/03/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  August 05, 2009    


Ultra(Long) Financials - UYG - close: 5.99 change: -0.10 stop: 5.40

The profit taking in financials was relatively mild. I would still 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.

Entry on September 03 at $ 5.29 
Change since picked:     + 0.70
                             /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*