Editor's Note:

Stocks have been very overbought so a pull back would be both normal and healthy. However, I expect any profit taking to be shallow. There are too many traders waiting on the sidelines to buy the dip.


BULLISH Play Updates

Agrium Inc. - AGU - close: 51.28 change: -1.04 stop: 48.90

I'm not surprised to see AGU slip again. The stock lost 1.9%. I've been suggesting readers look for a bounce from the $50.00 level. 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:     + 0.63   			
Earnings Date          11/05/09 (unconfirmed)    
Average Daily Volume:       1.9 million 
Listed on September 05, 2009    


Airgas Inc. - ARG - close: 48.91 change: -1.30 stop: 44.75

ARG is correcting and will hopefully hit our trigger soon. 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: 20.77 change: +0.56 stop: 17.45

BEAV displayed relative strength with a 2.7% gain and a new 2009 high. I am not suggesting new positions at this moment. Our first target is $22.25.

Entry on September 12 at $19.19 
Change since picked:     + 1.58   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       834 thousand
Listed on September 12, 2009    


China Mobile Ltd. - CHL - close: 51.82 chg: -0.31 stop: 47.90

CHL spiked to $52.73 before fading this afternoon. I would look for a dip or a bounce near $50.00 now as a new entry point. 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:     + 3.09  			
Earnings Date          00/00/?? (unconfirmed)    
Average Daily Volume:       2.3 million 
Listed on  August 29, 2009    


Carpenter Tech. - CRS - close: 25.19 change: -0.13 stop: 21.45

CRS held up pretty well only suffering a fractional decline. Shares are short-term overbought. I'd look for a dip back toward $22.50-22.00. 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:     + 3.74
                             /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: 35.08 chg: -1.70 stop: 33.95

Ouch! DRI under performed with a 4.6% decline. We were expecting a dip back toward $35.00 but not all at once. This level should be support. I would consider new positions on a bounce. 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:     + 0.26   			
Earnings Date          09/29/09 (unconfirmed)    
Average Daily Volume:       2.6 million 
Listed on September 05, 2009    


E M C Corp. - EMC - close: 17.10 change: -0.06 stop: 15.24

Tech stocks were strong today with the NASDAQ and EMC hitting new highs for the year before the late day sell-off. We have a trigger to buy EMC at $15.75. 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: 17.00 change: -0.01 stop: 14.75

GE also held up pretty well. The stock rallied toward its highs a week ago. The late-day failure here is starting to look like a bearish double top pattern. More conservative traders may want to exit completely right now. I am not suggesting new positions at this time.

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:     + 1.51
                            /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: 32.83 change: -1.23 stop: 28.95

HOT erased yesterday's gains with a 3.6% pull back. Today's session has produced a bearish reversal pattern but I still expect support near $30.00. The plan is to buy HOT at $31.00. If triggered our first target is $34.75. 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 @ 31.00
Change since picked:     + 0.00   			
Earnings Date          10/27/09 (unconfirmed)    
Average Daily Volume:       3.4 million 
Listed on September 19, 2009    


Helmerich & Payne Inc. - HP - close: 38.58 change: -1.10 stop: 37.15

Oil service stocks were hit by the drop in crude oil futures today. The oil inventory numbers came in bearish this morning. We have a relatively tight stop loss and should only have half our normal position size open. If we do get stopped out I would look for support near the $36.00-35.00 levels. The P&F chart is bullish with a $52 target. I'm setting our first target at $42.50.

Entry on September 21 at $38.93 (1/2 a position)
Change since picked:     - 0.35   			
Earnings Date          11/19/09 (unconfirmed)    
Average Daily Volume:       1.2 million 
Listed on September 21, 2009    


IDEX Corp. - IEX - close: 28.20 change: -0.05 stop: 26.75

IEX didn't see much profit taking but the short-term trend is still bearish. More conservative traders may want to exit completely right here. 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:     + 2.10   			
Earnings Date          07/20/09 (confirmed)    
Average Daily Volume:       570 thousand
Listed on  July 25, 2009    


J.P.Morgan Chase - JPM - close: 45.06 change: -1.41 stop: 41.90

After soaring to new highs yesterday JPM gave 3% this afternoon. A bounce in the $44.00-43.00 zone is probably a new bullish entry point. We want to sell half at $47.40. We'll sell the second half at $49.80.

Our plan was to use smaller position sizes (1/2 to 1/4 our normal size). We plan to 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:     + 1.56   			
Earnings Date          10/14/09 (confirmed)    
Average Daily Volume:        55 million 
Listed on  July 18, 2009    


Kirby Corp. - KEX - close: 37.47 change: -0.39 stop: 35.85 *new*

Short-term the action in KEX looks bearish with another failed rally under the 10-dma. I am expecting a dip toward $36.00 and its rising 50-dma. We can buy a bounce near $36.00. However, if shares don't bounce we want to exit. I'm raising our stop loss to $35.85. 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:     - 0.23   			
Earnings Date          10/29/09 (unconfirmed)    
Average Daily Volume:       310 thousand
Listed on September 05, 2009    


Koppers Holdings - KOP - close: 31.37 change: -0.42 stop: 27.45

The profit taking continues. 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: 25.71 change: -0.06 stop: 22.95

MSFT spiked to new multi-month highs at $26.25 this afternoon before reversing into negative territory. This could be a short-term top. I'd look for a dip toward $24.50-24.00. Our target is $27.75.

Entry on      July 27 at $23.00
Change since picked:     + 2.71   			
Earnings Date          07/23/09 (confirmed)    
Average Daily Volume:        58 million 
Listed on  July 23, 2009    


Pride Intl. Inc. - PDE - close: 30.20 change: -0.68 stop: 26.40

The bounce is struggling. Nothing has changed. We're still waiting for a deeper pull back.

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: 3.01 change: +0.08 stop: 2.59 *new*

Hmm... it was an interesting session for PLA. The stock under performed the first half of the day with a plunge toward $2.75 and its 30-dma and exponential 200-dma. Then the stock bounced back into positive territory and ignored the market's late-day sell-off. I'd almost call this bounce a new bullish entry point if the S&P 500 didn't look so vulnerable to more weakness.

Yesterday I did suggest buying a dip in the $2.75-2.60 zone. I'm raising our stop loss to $2.59.

Our second target remains the $3.95 level. FYI: The Point & Figure chart is bullish with a long-term $7.50 target.

Entry on September 01 at $ 2.65
Change since picked:     + 0.34 
                            /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: 44.06 change: -0.34 stop: 39.95

ROK briefly traded above resistance at $45.00 before retreating. I would prefer to open new bullish positions on a dip near $42.00. 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:     + 0.35   			
Earnings Date          11/10/09 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on September 10, 2009    


Schlumberger - SLB - close: 60.26 change: -1.31 stop: 56.95

The bearish oil inventory numbers this morning sparked a sell-off in crude oil and SLB was shaken for a 2.1% decline. I would consider buying dips or a bounce in the $58.00-57.00 zone. 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:     + 3.33
                             /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: 54.27 change: -0.62 stop: 47.49

Hopefully the pull back continues and SLX retests supportn ear $50.00.

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: 50.61 change: -0.33 stop: 49.75

I don't see any changes from my prior comments on TEVA. I would still be tempted to buy dips in the $50.50-50.00 region. 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:     + 0.11   			
Earnings Date          11/03/09 (unconfirmed)    
Average Daily Volume:       5.3 million 
Listed on  August 05, 2009    


Ultra(Long) Financials - UYG - close: 6.01 change: -0.23 stop: 5.40

Financials led the market lower this afternoon. If the profit taking continues we might see another entry point near $5.60-5.50. 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:     + 0.72
                             /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*