I was turning more and more bullish as stocks rallied into the closing bell. Then the surprise move by the Federal Reserve after hours to raise the discount rate to banks has sent stocks lower overnight. Investors might be worried that if the Fed is raising the discount rate then raising interest rates may not be that far behind. I suspect we might only see a short-term move lower before traders buy the dip but be careful!
NEW BULLISH Plays
Lennox Intl. - LII - close: 43.27 change: +0.27 stop: 39.75
Why We Like It:
LII is known for its climate control solutions (A/C, heating and ventilation). The stock has been on a tear lately with a rally to new all-time highs following its breakout from its prior trading range near $40.00. I suspect that if stocks retreat over the next day or two LII could dip back toward its December highs near $41.00. I am suggesting a trigger to buy LII at $41.00 with a stop loss at $39.75. 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