The market indices closed virtually unchanged. Investors can't decide what to do.


BULLISH Play Updates

DSW Inc. - DSW - close: 26.56 change: -0.17 stop: 25.95

More conservative traders will want to seriously consider an early exit out of DSW> The bounce is failing near $27.00. I'm concerned that if the market sees a sharp move lower DSW will break $26.00 and hit our stop loss. No new positions at this time. Our first target is $29.95. Remember, our plan was to keep your positions small to limit risk.

Entry on  February 16 at $27.60 (small positions)
Change since picked:     - 1.06   			
Earnings Date          03/24/10 (unconfirmed)    
Average Daily Volume:       416 thousand
Listed on  February 13, 2009    


Lennox Intl. - LII - close: 43.64 change: -0.17 stop: 39.75

LII spiked to $44.20 intraday. I still think this rally is getting tired. Shares are definitely short-term overbought and due for a dip. The plan is to buy LII on a dip at $41.00. More aggressive traders could use a stop under $39.00. If triggered our first target is $44.95. LII doesn't move super fast so be patient.

Entry on  February xx at $xx.xx <-- TRIGGER @ 41.00
Change since picked:     + 0.00   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       591 thousand
Listed on  February 18, 2009    


NUCOR - NUE - close: 43.66 change: -0.69 stop: 39.95

I cautioned traders over the weekend that NUE was poised for a pull back. Look for support near $42.00.

Our first target to take profits is at $46.75. Our second and final target is $49.85. Our time frame is about four to six weeks.

Entry on  February 16 at $42.98 (small positions)/gap higher entry
Change since picked:     + 0.68   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on  February 16, 2009    


Patterson Companies - PDCO - close: 30.02 change: +0.23 stop: 27.99

PDCO displayed some relative strength with a 0.77% gain and a close over the $30.00 mark. I still don't want to chase it. The plan is to buy PDCO on a dip at $29.25. Cautious traders could try a stop closer to the 50-dma. If we are triggered at $29.25 our first target is $32.50. Our time frame is four to six weeks.

Entry on  February xx at $xx.xx <-- TRIGGER @ 29.25
Change since picked:     + 0.00   			
Earnings Date          05/20/10 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on  February 20, 2009    


ROSS Stores - ROST - close: 47.15 change: +0.05 stop: 44.85

Buckle your seat belts and double check your stop loss placement. This could be a volatile week for retail stocks. LOW reported today and warned that Q1 sales would be lower. Home Depot, Sears, Target, Macy's and the Gap all report earnings this week. The sector could definitely see some volatility. Readers may want to wait on a bounce from $46.00 before considering new positions. Keep positions small. I'm still concerned ROST could be forming a bear wedge pattern. Our target to exit is $49.75.

Entry on  February 13 at $46.43 (small positions)
Change since picked:     + 0.88   			
Earnings Date          03/18/10 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  February 13, 2009    


Raytheon Co - RTN - close: 55.85 change: +0.31 stop: 52.75

RTN extended its gains but I'm still expecting a correction back toward $54.00. Be patient and wait for your entry point. I'm suggesting a trigger at $54.25. If triggered at $54.25 our first target is $59.00. Our time frame is four to six weeks.

Entry on  February xx at $xx.xx <-- TRIGGER @ 54.25
Change since picked:     + 0.00   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       2.9 million 
Listed on  February 20, 2009    


BEARISH Play Updates

Ameritrade - AMTD - close: 17.60 change: -0.43 stop: 18.26 *new*

AMTD is offering us another bearish entry point with a failed rally near $18 and under its 50-dma. Readers can launch positions now and tighten their stops toward Friday's high (18.22). I am lowering our stop loss down to $18.26. Our first target is $16.10. Our second target is $15.05. Our time frame is about six weeks.

Entry on   January 28 at $17.88 
Change since picked:     - 0.28   			
Earnings Date          04/21/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on   January 28, 2009    


Life Technologies - LIFE - close: 50.16 change: +0.15 stop: 52.01

Shares of LIFE spiked above resistance at the 50-dma today but shares reversed after tagging $50.75. I am suggesting readers wait for this bounce to roll over before launching new bearish positions. A drop under $49.50 or $49.00 should work as a new entry point. Our target to take profits is at $45.55. More aggressive traders could aim lower but the 200-dma is probably support.

Entry on   January 30 at $49.71 
Change since picked:     + 0.45   			
Earnings Date          01/28/10 (confirmed)    
Average Daily Volume:       2.6 million 
Listed on   January 30, 2009    


PACCAR Inc. - PCAR - close: 35.36 change: -0.59 stop: 36.65

Shares of PCAR are rolling over just as expected. The stock closed under technical support at its 200-dma today. More aggressive traders may want to jump in now. We have a trigger to open bearish positions at $34.90. If we are triggered at $34.90 our first target is $32.00. Our second target is $30.50. Our time frame is several weeks. FYI: It is worth noting that the most recent data listed short interest at 7.5% of the 321-million share float.

Entry on  February xx at $xx.xx <-- TRIGGER @ 34.90
Change since picked:     + 0.00   			
Earnings Date          04/28/10 (unconfirmed)    
Average Daily Volume:       3.1 million 
Listed on  February 20, 2009    


SBA Communications - SBAC - close: 34.22 change: -0.56 stop: 35.05

Almost perfect! SBAC is presenting a new entry point with the bounce rolling over under resistance at $35.00. Unfortunately we are almost out of time. SBAC reports earnings on February 25th after the closing bell. That means we only have three days left. We will exit on the 25th at the close to avoid holding over earnings.

Entry on   January 28 at $33.45
Change since picked:     + 0.77   			
Earnings Date          02/25/10 (confirmed)    
Average Daily Volume:       1.5 million 
Listed on   January 26, 2009    


J.M.Smucker CO - SJM - close: 60.39 change: -0.16 stop: 61.31 *new*

Shares are still struggling under the 50-dma. It looks like an entry point but we're out of time. We're planning to exit tomorrow (Feb. 23rd) at the close to avoid holding over earnings on the 24th. I am lowering our stop loss to $61.31.

Entry on  February 05 at $59.49
Change since picked:     + 1.06   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       698 thousand
Listed on   January 30, 2009    


WIPRO Ltd - WIT - close: 21.07 change: +0.11 stop: 22.15

Check out the intraday chart on WIT. The last four days in a row the stock gapped open and immediately reversed. Three out of those four days the stock gapped open higher only to reverse. I still think shares are ready to correct lower. Readers could launch positions now and more conservative traders could lower their stop down toward $21.50ish. Our target is $18.05.

Entry on  February 17 at $21.35
Change since picked:     - 0.28   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       934 thousand
Listed on  February 00, 2009    


CLOSED BEARISH PLAYS

GATX Corp. - GMT - close: 27.73 change: +0.24 stop: 27.65

The rally in GMT continued for the seventh day in a row. Shares broke out past the 200-dma on Friday and opened at $27.66 this morning. Our stop loss was at $27.65 so the play was closed immediately. A week ago I suggested we may want to exit early. That would have been a good move. The larger trend for GMT is still very bearish. Look for resistance in the $28-29 zone.

chart:

Entry on  February 04 at $25.95 
Change since picked:     + 1.71 <-- stopped @ 27.66 (+6.5%)
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       467 thousand
Listed on  February 04, 2009