We are closing a few trades early given the market's late day rally on Thursday.


BULLISH Play Updates

UltraShort Europe - EPV - close: 24.81 change: +0.42 stop:21.75

The debt problem with Greece is flaring up again. European markets suffered a rough day. Shares of the EPV gapped open this morning in response but reversed under very short-term resistance near $26.00. Volume was an all-time high at 1.49 million shares.

I'm bullish on the EPV, which means I'm bearish on Europe. I'd still consider new positions here but keep your positions small. This is a volatile ETF. Don't forget that the EPV is the double, inverse ETF on the MSCI Europe Index.

Our first target to take profits is at $29.50.

Entry on  February 23 at $24.82 /gap open entry
Change since picked:     - 0.01   			
Earnings Date          --/--/-- 
Average Daily Volume:        98 thousand
Listed on  February 23, 2010    


Ford Motor Co. - F - close: 11.78 change: +0.05 stop: 10.99

Traders bought the dip this morning at $11.40, which was perfect since I suggested buying the dip in the $11.50-11.40 zone. Ford continues to show relative strength and closed the session with a gain. I don't see any changes from my prior comments and would still open bullish positions at current levels if you missed the morning weakness. There is potential resistance at the January highs but our first target is $12.50. Our second, longer-term target is $13.40. Our time frame is several weeks.

Entry on  February 23 at $11.72 /gap higher entry
Change since picked:     + 0.06   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:        96 million 
Listed on  February 23, 2010    


Lennox Intl. - LII - close: 42.33 change: -0.47 stop: 39.75

The correction in LII continues. Shares gapped open lower and hit $41.50 this morning. More aggressive traders may want to jump in now given the intraday bounce. I'm sticking to the plan and that's to wait for a dip to $41.00 before initiating positions. In reality readers could look for a pull back into the $41.00-40.00 zone as an entry point. 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: 41.88 change: -0.21 stop: 39.95

Our aggressive play on NUE continues to see volatility. The stock spiked down to $40.50 this morning. NUE is channeling sideways with support in the $39-40 zone and resistance in the $50-51 zone. We can buy dips (or bounces) in the $40-41 area. More aggressive traders may want to use a wider stop loss and place their stop under the February low (38.93). If you want to wait for a little confirmation on the bounce then look for a new rise over $43.00 to initiate positions.

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:     - 1.10   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on  February 16, 2009    


Patterson Companies - PDCO - close: 30.02 change: -0.07 stop: 27.99

I don't see any changes from my prior comments on PDCO. More aggressive traders can jump in now or look for a move over $30.25 as their entry point. I would rather wait to buy a dip at $29.00, near the rising 50-dma. 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: 48.87 change: +0.73 stop: 45.90 *new*

The rally continues in ROST with a 1.5% gain. The relative strength is very encouraging. I am raising our stop loss to $45.90. Our target to exit is $49.75.

Entry on  February 13 at $46.43 (small positions)
Change since picked:     + 2.44   			
Earnings Date          03/18/10 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  February 13, 2009    


Raytheon Co - RTN - close: 55.85 change: -0.32 stop: 53.75 *new*

Entry point alert! We're changing our entry point strategy. Instead of waiting for a dip toward $54.00 I am suggesting readers buy the intraday bounce today! RTN slipped toward previous resistance and now new short-term support at $55.00 and bounce. We will adjust our stop loss to $53.75. Our target to exit is $59.50. Our time frame is four to six weeks.

chart:

Entry on  February 25 at $55.85
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: 17.64 change: +0.19 stop: 18.26

Uh-oh! Traders bought the dip in AMTD this morning and shares produced a bullish engulfing (reversal) candlestick pattern. Now normally these patterns need to see confirmation first but it does act as a warning sign for us. I'm not suggesting new bearish positions unless we see another failed rally under $18.00 and its 50-dma. Our first target is $16.10. Our second target is $15.05.

Entry on   January 28 at $17.88 
Change since picked:     - 0.24   			
Earnings Date          04/21/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on   January 28, 2009    


PACCAR Inc. - PCAR - close: 35.70 change: -0.01 stop: 36.65

The trend is down but PCAR is not seeing much follow through on its recent failed rally. Readers may want to wait and watch for shares to fail again under the 50-dma near $36.50 before initiating new positions. 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 23 at $34.90
Change since picked:     + 0.80   			
Earnings Date          04/28/10 (unconfirmed)    
Average Daily Volume:       3.1 million 
Listed on  February 20, 2009    


Yum Brands - YUM - close: 33.70 change: -0.01 stop: 34.15

Shares of YUM were weak until the last couple of hours of trading. Bigger picture it looks like YUM is poised to trade lower but the stock might see a short-term rally toward stronger resistance at $34.50 and its 50 and 200-dma. Cautious traders could tighten their stops down toward $33.90 and if you get stopped out you could re-enter if YUM produces a failed rally near $34.50. I'm not suggesting new positions at this moment. Our first target is $30.15. Our longer-term target is $28.00.

Entry on  February 23 at $33.73 /gap open entry
Change since picked:     - 0.03   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       4.3 million 
Listed on  February 23, 2010    


CLOSED BEARISH PLAYS

Life Technologies - LIFE - close: 51.01 change: +0.75 stop: 52.01

It's time to go. Yesterday I said that if LIFE closes above $50.75 without hitting our stop we'll probably close this play early. Sure enough shares quickly rebounded from their morning weakness to breakout and close above its 50-dma. I'm suggesting an early exit now!

chart:

Entry on   January 30 at $49.71 
Change since picked:     + 1.30 <-- early exit @ 51.05 (+2.6%)
Earnings Date          01/28/10 (confirmed)    
Average Daily Volume:       2.6 million 
Listed on   January 30, 2009    


LuLuLemon - LULU - close: 29.12 change: +0.72 stop: 29.51

LULU is showing way too much relative strength with a 2.5% gain today. I'm suggesting we cut our losses early. The $29.25-29.50 zone is still overhead resistance that happens to be bolstered by the 50-dma but it looks like if the market is positive tomorrow LULU could breakout higher. We want to exit early.

chart:

Entry on  February 23 at $27.93 
Change since picked:     + 1.19 <-- exit early @ 29.12 (+4.2%)
Earnings Date          03/25/10 (unconfirmed)    
Average Daily Volume:       668 thousand
Listed on  February 23, 2010    


WIPRO Ltd - WIT - close: 21.21 change: +0.20 stop: 21.65

Most of the market was spiking lower this morning. Not so for WIT. Shares gapped open higher thanks to an analyst upgrade before the bell. The rally didn't hold and it looks like shares produced another failed rally near its 50-dma. However, WIT has had over a week to reverse lower and it hasn't. I'm suggesting an early exit now to cut our losses. More aggressive and nimble traders may want to buy WIT on a breakout over $21.65 and aim for the $24 area.

chart:

Entry on  February 17 at $21.35
Change since picked:     - 0.14 <-- exit early @ 21.21 (-0.6%)
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       934 thousand
Listed on  February 00, 2009