Two of our bearish candidates hit exit targets on Friday. We're updating a few stops and entry points.


BULLISH Play Updates

Patterson Companies - PDCO - close: 28.58 change: -0.05 stop: 27.95

PDCO dipped toward support near $28.00 and its 50-dma and bounced. I am suggesting we use this intraday rebound as a new bullish entry point to buy PDCO. Our first target to take some money off the table is $30.90. Our second target is $32.45. We do not want to hold over the February 18th earnings report so PDCO may not reach our second target in time.

Annotated chart:

Entry on  February 02 at $29.16 /gap down entry
Change since picked:     - 0.58   			
Earnings Date          02/18/10 (unconfirmed)    
Average Daily Volume:       1.3 million 
Listed on  February 02, 2009    


BEARISH Play Updates

American Tower Corp. - AMT - close: 40.10 change: -0.92 stop: 42.75 *new*

Target achieved. AMT sank to $39.46 on Friday before paring its losses and closing right near support at $40 and its 100-dma. Our first target to take profits was at $40.10. Shares are short-term oversold and could easily bounce back toward the $41.75-42.00 zone. I am adjusting our stop loss down to $42.75. Wait for the bounce to stall or roll over before considering new positions. Our second target to exit is $37.75. We do not want to hold over the late February earnings report.

Annotated chart:

Entry on   January 27 at $41.90
Change since picked:     - 1.80  
                          /1st target hit @ 40.10 (-4.2%)
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       2.8 million 
Listed on   January 26, 2009    


Ameritrade - AMTD - close: 16.96 change: +0.25 stop: 18.60

AMTD dipped to $16.55 before bouncing. Shares are definitely short-term oversold so don't be surprised if AMTD bounces back toward $18.00 or even its 200-dma. I am not suggesting new positions at this time. Wait for the bounce to fizzle before initiating new positions. Our first target is $16.10. Our second target is $15.05. Our time frame is about six weeks.

Annotated chart:

Entry on   January 28 at $17.88 
Change since picked:     - 0.92   			
Earnings Date          04/21/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on   January 28, 2009    


Best Buy - BBY - close: 35.82 change: +0.23 stop: 38.75 *new*

Target achieved. BBY slipped to $35.16 intraday. Our first target to take profits was at $35.25. Shares of BBY are very oversold and due for a bounce. I would expect BBY to rebound toward $37.50 or even the 200-dma just above $38. Please note our new stop loss at $38.75. Our second and final target is $32.25.

Annotated chart:

Entry on   January 12 at $38.95 (small positions)
Change since picked:     - 3.13
                           /1st target hit @ 35.25 (-9.4%)
Earnings Date          03/25/10 (unconfirmed)    
Average Daily Volume:       8.0 million      
Listed on   January 02, 2009    


Companhia Brasileira de Distribuicao - CBD - cls: 66.14 chg: +2.33 stop: 72.65

After a sharp, two-day decline CBD was due for a bounce. Shares gained 3.6% but failed to regain their 100-dma. The stock is proving to be as volatile as we expected. I would look for the oversold bounce to carry CBD toward $69-70 again before rolling over. We wanted to use small positions to limit our risk. Our first target is $61.00. Our second target is $56.00. Time frame is several weeks.

Annotated chart:

Entry on   January 26 at $69.40 (very small positions)
Change since picked:     - 3.26 
Earnings Date          03/03/10 (unconfirmed)    
Average Daily Volume:       261 thousand
Listed on   January 23, 2009    


DSW Inc. - DSW - close: 25.00 change: -0.47 stop: 25.55

DSW underperformed on Friday. There was no afternoon bounce in the stock and shares closed under the 50-dma. Shares came to rest on previous resistance and round-number support at $25.00. I don't see any changes from my prior comments. We're waiting for a breakdown with a trigger to open bearish positions at $23.75. I doubt we're going to see this play open any time soon. The market looks poised to bounce from here and I would expect DSW to follow it higher. If DSW does rebound on Monday we'll drop it as a bearish candidate.

If triggered at $23.75 our first target is $21.50 (essentially we're aiming for the 100-dma). Our second target is $20.05.

Annotated chart:

Entry on   January xx at $xx.xx <-- TRIGGER @ 23.75
Change since picked:     + 0.00   			
Earnings Date          03/24/10 (unconfirmed)    
Average Daily Volume:       387 thousand
Listed on   January 26, 2009    


F5 Networks - FFIV - close: 48.43 change: +0.07 stop: 52.55

Shares of FFIV were upgraded to an "outperform" on Friday. The news didn't have much affect on the stock. FFIV continued to sink until the market bounced Friday afternoon. FFIV had just begun to slip under technical support at its 100-dma before the afternoon bounce began. I would expect shares to bounce back toward $51.50-52.00. Wait for the bounce to stall or reverse before initiating new bearish positions. Our first target is $46.10. Our second target is $44.00.

Annotated chart:

Entry on   January 29 at $49.45 
Change since picked:     - 1.02   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       1.2 million 
Listed on   January 28, 2009    


GATX Corp. - GMT - close: 26.43 change: +0.48 stop: 27.65

The action on Friday morning is worrisome. The major averages were sinking fast and yet shares of GMT failed to breakdown to new lows. That is a concern! More conservative traders may want to go ahead and exit early now. You can re-enter later. I am expecting GMT to bounce back toward technical resistance at its 200-dma near $27.40. Wait for the bounce to stall or reverse before considering new positions. An alternative would be to wait for a new relative low under $25.65.

Our first target is $23.15. Our second target is $21.00. It could take several weeks to get there.

Annotated chart:

Entry on  February 04 at $25.95 
Change since picked:     + 0.48   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       467 thousand
Listed on  February 04, 2009    


Life Technologies - LIFE - close: 47.36 change: -0.29 stop: 52.01

LIFE fell to $46.32 before bouncing with the market on Friday afternoon. If the rebound continues look for resistance near $50 or its 50-dma. Wait for the bounce to stall or reverse before launching new positions. I'm adjusting our first target to $45.55 since we want to stay above the rising 200-dma. I do expect LIFE to bounce from its 200-dma so I'm eliminating the second target for now.

Annotated chart:

Entry on   January 30 at $49.71 
Change since picked:     - 2.35   			
Earnings Date          01/28/10 (confirmed)    
Average Daily Volume:       2.6 million 
Listed on   January 30, 2009    


SBA Communications - SBAC - close: 31.79 change: -0.03 stop: 35.05

SBAC sank to $30.63 before paring its losses. The bounce back carried SBAC back above its 100-dma. Shares are oversold and I would expect a rebound toward $33-34. Wait for the bounce to stall or reverse before launching new positions. Our target is $30.15. More aggressive traders could aim for the 200-dma.

Annotated chart:

Entry on   January 28 at $33.45
Change since picked:     - 1.66   			
Earnings Date          02/25/10 (unconfirmed)    
Average Daily Volume:       1.5 million 
Listed on   January 26, 2009    


J.M.Smucker CO - SJM - close: 59.51 change: -0.79 stop: 61.51

Our bearish play on SJM is now open. Shares sank to $59.04 on Friday. Our trigger for bearish positions was $59.49. Don't be surprised if you see a bounce back toward $61.00, especially if the market sees any follow through on Friday's late-day rebound. Our target is $55.15.

Annotated chart:

Entry on  February 05 at $59.49
Change since picked:     + 0.02   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       698 thousand
Listed on   January 30, 2009    


Warner Chilcott - WCRX - close: 25.53 change: -0.22 stop: 28.05 *new*

WCRX slipped to a new relative low at $24.85 before bouncing. I suspect that shares will rebound toward $27.00-27.50, especially if the market sees a strong bounce. More conservative traders may want to exit early right here. You can re-enter on a failed rally. I'm lowering our stop loss to $28.05. I'm not suggesting new positions at current levels. WCRX has already hit our first target at $25.00. Our second target is $22.25.

Annotated chart:

Entry on   January 30 at $26.65 /gap down entry point
Change since picked:     - 1.12
                             /1st target hit @ 25.00 (-6.1%)
Earnings Date          02/26/10 (unconfirmed)    
Average Daily Volume:       1.3 million 
Listed on   January 30, 2009    


WIPRO Ltd - WIT - close: 19.56 change: -0.22 stop: 22.55

WIT sank to new two-month lows on Friday. The afternoon bounce was kind of anemic. Instead of launching bearish positions now I'm suggesting we wait for a bounce. The 50-dma is near 21.47. We will lower our trigger to open bearish positions to $21.40. We'll lower our stop loss to $22.55. If we are triggered at $21.40 our first target is $18.05.

Annotated chart:

Entry on  February xx at $xx.xx <-- TRIGGER @ 21.40
Change since picked:     + 0.00   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       934 thousand
Listed on  February 00, 2009    


CLOSED BEARISH PLAYS

Atlas Air Worldwide - AAWW - close: 38.08 change: -0.10 stop: 39.10

I am giving up on AAWW as a bearish candidate. It looks like shares could be building a bear-flag pattern but the stock did not show any weakness on Friday morning when the rest of the market was plunging. We want to exit early now.

chart:

Entry on   January 23 at $37.66 /gap open entry
Change since picked:     + 0.42 <-- exit early (+1.1%)
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       291 thousand
Listed on   January 23, 2009