The stock market action on Tuesday is offering traders another chance to launch bearish positions


BULLISH Play Updates

Lennox Intl. - LII - close: 42.94 change: -0.70 stop: 39.75

No changes here. We're still waiting for LII to correct and it looks like the correction has started with a 1.6% decline today. 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: 42.00 change: -1.66 stop: 39.95

Ouch! It was a painful day for NUE with a 3.8% decline but I cautioned traders yesterday to look for a dip to $42.00. The question is will support in the $40 region hold?

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:     - 0.98   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on  February 16, 2009    


Patterson Companies - PDCO - close: 29.65 change: -0.37 stop: 27.99

PDCO only lost 1.2% today but the move is technically a bearish engulfing candlestick pattern. I am lowering our trigger to buy PDCO from $29.25 to $29.00. More conservative traders may want to up their stop toward the $28.50 region. If we are triggered at $29.00 our first target is $32.50. Our time frame is four to six weeks.

Entry on  February xx at $xx.xx <-- TRIGGER @ 29.00
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: 47.02 change: -0.13 stop: 44.85

ROST is still drifting sideways. There were four big earnings reports out of the retail sector this morning. All of them beat analysts' estimates on the earnings front but most were cautious on sales growth going forward. Yet the retail sector didn't really see much of a move on the news and obviously neither did shares of ROST. I am not suggesting new positions at this time but might reconsider on a bounce from $46.00. Our target to exit is $49.75.

Entry on  February 13 at $46.43 (small positions)
Change since picked:     + 0.75   			
Earnings Date          03/18/10 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  February 13, 2009    


Raytheon Co - RTN - close: 55.51 change: -0.34 stop: 52.75

As expect the rally is starting to lose momentum. 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: 17.40 change: -0.20 stop: 18.26

So far so good. AMTD provided us another entry point yesterday. I'd still consider new positions now. 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:     - 0.48   			
Earnings Date          04/21/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on   January 28, 2009    


Life Technologies - LIFE - close: 49.50 change: -0.66 stop: 52.01

LIFE is offering us another entry point with shares rolling over under resistance at the 50-dma. More conservative traders may want to wait for a new drop under $49.00 before launching positions. I am concerned that the 200-dma could be support. I'm setting one target to take profits at $46.50. We'll use a second, more aggressive target at $44.00.

Entry on   January 30 at $49.71 
Change since picked:     - 0.21   			
Earnings Date          01/28/10 (confirmed)    
Average Daily Volume:       2.6 million 
Listed on   January 30, 2009    


PACCAR Inc. - PCAR - close: 34.90 change: -0.46 stop: 36.65

Thankfully we didn't have to wait very long for PCAR to hit our trigger. The plan was to open bearish positions if PCAR hit $34.90. Shares did so today. I would still consider new positions now. 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.

chart:

Entry on  February 23 at $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: 34.38 change: +0.16 stop: 35.05

Uh-oh! We were not expecting to see any relative strength in SBAC today. Traders bought the dip near its 10-dma and shares closed in positive territory. We only have two days left but more conservative traders may want to exit early right now.

Currently the plan is to exit on February 25th at the closing bell to avoid holding over the earnings report.

Entry on   January 28 at $33.45
Change since picked:     + 0.93   			
Earnings Date          02/25/10 (confirmed)    
Average Daily Volume:       1.5 million 
Listed on   January 26, 2009    


WIPRO Ltd - WIT - close: 20.79 change: -0.28 stop: 22.15

WIT is starting to drift lower. It's not too late to open up bearish positions. More conservative traders could lower their stop down toward the $21.50 area. Our target is $18.05.

Entry on  February 17 at $21.35
Change since picked:     - 0.56   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       934 thousand
Listed on  February 00, 2009    


CLOSED BULLISH PLAYS

DSW Inc. - DSW - close: 26.18 change: -0.38 stop: 25.95

I'm throwing in the towel on DSW. Shares are rolling and a breakdown under $26.00 seems imminent. Exit early now. Remember, our plan was to keep your positions small to limit risk.

chart:

Entry on  February 16 at $27.60 (small positions)
Change since picked:     - 1.42 <-- early exit @ 26.18 (-5.1%)
Earnings Date          03/24/10 (unconfirmed)    
Average Daily Volume:       416 thousand
Listed on  February 13, 2009    


CLOSED BEARISH PLAYS

J.M.Smucker CO - SJM - close: 60.11 change: -0.28 stop: 61.31

Time has run out for us. The plan was to exit at the close today to avoid holding over earnings tomorrow morning.

chart:

Entry on  February 05 at $59.49
Change since picked:     + 0.62 <-- closed early @ 60.11 (+1.0%)
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       698 thousand
Listed on   January 30, 2009