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Play Editor's Note:

Don't get suckered in by the technical bounce today. Stocks were oversold and the S&P 500 is bouncing from its 2008 lows, which is where investors were expecting a bounce. I think this bounce might last two or three days, which is why I'm adding some bullish call plays to the newsletter tonight. However, please note that these are very short-term bullish plays. I think the S&P 500 could run into trouble in the 795-810 region. It could take the market a few days to reach those levels or it could happen tomorrow and how fast the S&P nears potential resistance will have an impact on how long we hold these bullish plays. I'll be watching for the rebound to fail and we can initiate new bearish plays.

FYI: I almost added Mastercard (MA) as a bullish candidate tonight. More nimble traders may want to consider some short-term bullish plays in that name.


NEW DIRECTIONAL CALL PLAYS

Amazon.com - AMZN - close: 65.60 change: +3.89 stop: 64.85

Why We Like It:
Please see tonight's editor's note before considering any of our new bullish plays. AMZN is a tempting bullish candidate because the stock has been consolidating sideways the last couple of weeks while the rest of the market sank to new lows. Today's rally over resistance near $65.00 and its 200-dma is bullish but I would not buy AMZN here. The stock has a bearish trendline of lower highs still overhead. I'm suggesting readers buy calls at $67.60. If triggered our target is $74.00.

Suggested Options:
Our suggested trigger is $67.60. I would use the March calls. It is up to the individual trader to decide which month and which strike price best suits your trading style and risk profile.

BUY CALL MAR 65.00 ZQN-CM open interest=8813 current ask $4.35
BUY CALL MAR 70.00 ZQN-CN open interest=4333 current ask $2.12

Annotated Chart:
AMZN

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           03/27/09 (unconfirmed)
Average Daily Volume =      11.9 million  


Gold ETF - GLD - close: 94.73 change: -3.00 stop: 89.45

Why We Like It:
The GLD gold ETF is hit resistance near $100 ($1,000/ounce for gold futures) and hit resistance near the top of its bullish channel (see chart). We want to buy a dip near support. I am suggesting readers use a trigger at $90.50 to buy calls on the GLD. We'll use a stop loss at $89.45. If we're stopped out we can try again by using a dip near its rising 50-dma as an entry point with a stop about 50-cents under the 50-dma. We have two targets. Our first target is $94.75. Our second target is $97.45.

Suggested Options:
Our 1st trigger is $90.50. We're suggesting the March calls although you may want to consider April calls. Strikes are available at $1.00 increments.

BUY CALL MAR 88.00 GLD-CJ open interest=3247  current ask $8.10
BUY CALL MAR 90.00 GLD-CL open interest=21278 current ask $6.60
BUY CALL MAR 95.00 GLD-CQ open interest=47517 current ask $3.60

Annotated Chart:
GLD

Picked on February xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =        23 million  


Research In Motion - RIMM - close: 40.42 change: +3.00 stop: 37.70

Why We Like It:
Please see tonight's editor's note before considering any of our new bullish plays. RIMM has seen a 33% haircut in the last three weeks following the company's latest earnings guidance. The stock is very oversold and due for a significant correction higher. I'm suggesting readers buy calls now with a stop loss under today's low. We do not want to open positions if RIMM gaps open higher tomorrow above $41.55. Our first target is $44.95. More aggressive traders may want to aim for the 50-dma near $46.80.

Suggested Options:

BUY CALL MAR 40.00 RUP-CH open interest=19568 current ask $3.30
BUY CALL MAR 45.00 RFY-CI open interest=21580 current ask $1.38

Annotated Chart:
RIMM

Picked on February 24 at $ 40.42
Change since picked:      + 0.00
Earnings Date           04/02/09 (unconfirmed)
Average Daily Volume =        26 million  


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