Editor's Note:

The rally to resistance today (10,400, 1115, 2275) suggests the next move could be strong. We are either going to bust out and begin a secondary move higher or crash and burn. Based on the Nasdaq resistance breakout over 2250 I am leaning to the bullish scenario. However, the Nasdaq has stronger resistance at 2325 so anything is possible.


BULLISH Play Updates

Ford Motor Co. - F - close: 12.41 change: +0.67 stop: 11.75

Outstanding! Ford spiked to a new high at $12.41 and only 9 cents from our first target at $12.50. Ford said it was raising production by about 5% for Q1. They are leading the sector in new business! I raised the stop to 11.75 and just over our entry point so there is no risk in the trade.

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:     + 0.79   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:        96 million 
Listed on  February 23, 2010    


NUCOR - NUE - close: 42.34 change: +0.97 stop: 40.75 *NEW*

One day does not make a trend and while Nucor gained a buck today I am still leery of making new entries until we see a trend develop. I raised the stop to $40.75.

James' comments: 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:     - 0.64   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on  February 16, 2009    


Patterson Companies - PDCO - close: 30.13 change: +0.44

James is looking for a return to support at the 50-day average for an entry.

James comments: 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: 49.29 change: +0.39 stop: 48.25

The rally continues in ROST after Dillards beat the street with earnings today. The strength in Ross is very encouraging. I am raising our stop loss to $48.25.

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: 56.80 change: +0.55 stop: 55.85 *NEW*

Another new high for RTN on news of some new contracts. Let's hope this continues. I raised the stop to $55.85 and the entry point so this is now a risk free trade.

Our stop loss is $55.85. Our target to exit is $59.50. Our time frame is four to six weeks.

Entry on  February 25 at $55.85
Change since picked:     + 0.95   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       2.9 million 
Listed on  February 20, 2009    


BRCD - Brocade Communications - $5.74, -0.08, Stop 5.25

I was successful in picking the only tech stock that did not go up today as a bullish play on Sunday. The only news today was the appointment of a new marketing officer. Hopefully this is not the start of a new trend.

Target = $7.00

Entry on  March 01 at $5.86 
Change since picked:     - 0.12   			
Earnings Date          02/22/10 
Average Daily Volume: 42 Million  
Listed on  February 28, 2009    


BEARISH Play Updates

Ameritrade - AMTD - close: 17.40 change: -0.09 stop: 17.85 *NEW*

AMTD declined all day after a volatile open. Unfortunately AMTD trades very shallow and despite the 4 million shares traded the moves are very small. The first target is $16.75. Our second target is $15.05.

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    


PACCAR Inc. - PCAR - close: 36.02 change: +0.68 stop: 36.65

With a 2% move higher today this is looking more like a bullish play than bearish. It was all market related and our stop remains $36.65.

The first target is $33.75. There is decent support at $33.50. 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:     + 1.12   			
Earnings Date          04/28/10 (unconfirmed)    
Average Daily Volume:       3.1 million 
Listed on  February 20, 2009    


Yum Brands - YUM - close: 33.86 change: +0.16 stop: 34.15

Minor gain, slow mover, maintain stop at $34.15.

James comments: 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:     + 0.13   			
Earnings Date          02/24/10 (unconfirmed)    
Average Daily Volume:       4.3 million 
Listed on  February 23, 2010    


CLOSED BULLISH PLAYS

Lennox Intl. - LII - close: 43.22 change: +1.02 *CLOSED*

James said Lennox did not move fast but today was a giant leap forward. We were looking for a pullback to the 50-day average at $41 for an entry and with today's spike higher I don't think that is going to happen and I am closing the recommendation.

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