FYI: There are a lot of commodity and material-related names showing strength today. Check out steel, oil, and coal names as potential candidates.
NEW BULLISH Plays
Patriot Coal - PCX - close: 11.78 change: +0.88 stop: 9.95
Why We Like It:
PCX soared on Monday as investors bought the bounce. The three-week correction had shaved off nearly 40% of PCX's stock price. Normally I would try and avoid buying a big bounce like PCX's 8% gain today but this is the sort of stock that could run away from us if we wait for a dip. Of course more conservative traders may want to do just that and wait for a little pull back, maybe near $11.25-11.00.
I'm using a wide stop loss given PCX's recent volatility. Buy the stock now. We'll take profits at $13.90. We'll cautiously set a secondary target at $16.75 but the plan is to exit ahead of the late October earnings report.
Entry on October 05 at $11.78
Change since picked: + 0.00
Earnings Date 10/28/09 (unconfirmed)
Average Daily Volume: 6.4 million
Listed on October 05, 2009