BULLISH Play Updates

Ford Motor Co. - F - close: 12.78 change: +0.10 stop: 12.15 *NEW*

Another day, another ten cents. Ford is not setting the chart on fire but at least it continues to creep higher towards our second target. Moody's raised Ford's one notch to B2 from B3. That is the fifth-highest junk rating.

The intraday spike to $12.50 on Tuesday hit our first exit target.

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:     + 1.06   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:        96 million 
Listed on  February 23, 2010    

NUCOR - NUE - close: 43.17 change: +0.25 stop: 42.75 *NEW*

Four consecutive daily gains despite the sharp drop at the open. The drop came from a rating downgrade by Moody's. They cut their debt to A2 from A1 and affirmed their Prime-1 short-term debt rating. Moody's said it was due to their weaker earnings last quarter.

I am still concerned about adding new positions on NUE. It is not performing well despite upgrades to the price and demand for steel in 2010.

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:     + 0.19   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on  February 16, 2009    

Raytheon Co - RTN - close: 56.76 change: +0.25 stop: 56.35 *NEW*

It was a positive day but ugly on the charts. It still appears RTN is forming a top so I raised the stop again to just under today's low. No specific news.

Our stop loss is breakeven $56.20. 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:     + 0.91   			
Earnings Date          04/22/10 (unconfirmed)    
Average Daily Volume:       2.9 million 
Listed on  February 20, 2009    

POWR - Powersecure Intl $7.55, Change -0.02, stop $7.30

POWR held the high ground and only gave back two cents. The rising wedge is still intact with continued higher lows. We are waiting for earnings on March 11th.

This is an earnings lottery play. POWR will report earnings on March 11th. They have already preannounced the backlog will be better than previously expected. The stock is currently $7.57 and the $7.50 March call is only 60-cents. I believe the company will announced decent earnings and move sharply higher. The chart already shows upside pressure building. A positive number could generate some additional short covering. With the cheap option already in the month it will not take much of a move to get a nice return.

Position: POWR stock with a stop at $7.30.

Option buyers:
Position: MARCH $7.50 CALL (POWR 10C0750) @ $.55

Entry on  March 03 at $ 7.64 
Change since picked:  - 0.09   			
Earnings Date       03/11/10 (confirmed)    
Average Daily Volume:    78K      
Listed on  March 2nd, 2010    

FWLT - Foster Wheeler $24.97, change -0.19, stop $23.75

FWLT gave back the morning gains when oil prices fell to $79.71 intraday. No specific news. FWLT will broadcast live its investor day session on March 17th. The investor day should give the stock a boost.

Why We Like It:
All of the construction and engineering stocks have reported earnings with a real mix of results. FWLT reported profits on 2/25 that fell -35% but they still beat the street. Foster dropped on a soft outlook. Several others in the group (MDR, FLR, SGR, URS, SHAW) also reported soft bookings but they all predicted stronger conditions as the year progressed. Each of the group had their volatility events on the announcements but all appear to be starting to trend higher again. Foster is a relatively cheap stock at $25 and that is strong support from last year. I am betting the worst is over and as the recovery signs begin increasing so will these stocks.

I am going to put a tight stop on it at just under the March first low. That gives us about $1.35 in cushion. The first target will be resistance at $28 and we will set a second target as we close in on that level. I could see a return to $35 later this year but I doubt we want to hold it in the newsletter that long.

Position: FWLT @ $25.13 with a stop at $23.75.

Option buyers:
Position: APR $26.00 CALL (FWLT 10D2600) @ $1.10

Entry on  March 04 at  $25.13 
Change since picked:   - 0.16   			
Earnings Date             N/A
Average Daily Volume:    4.5M      
Listed on  March 3rd, 2010    

BEARISH Play Updates

Ameritrade - AMTD - close: 17.24 change: -0.06 stop: 17.51 *NEW*

This is like watching paint dry. AMTD is going in the right direction but grass grows faster than this. Hopefully if we get a negative day in the market we will see a bigger decline in AMTD. The first target is $16.75. Our second target is $15.05.

Entry on   January 28 at $17.88 
Change since picked:     - 0.62   			
Earnings Date          04/21/10 (unconfirmed)    
Average Daily Volume:       6.1 million 
Listed on   January 28, 2009    


ROSS Stores - ROST - close: 51.06 change: +1.61 CLOSED

That was a huge move for ROSS. They announced at the open that same store sales were up +11% and the stock exploded higher.

I had lowered the exit target to $49.65 yesterday and the stock gapped up to over $51 in the opening spike. You would have been hard pressed to sell it for $49.65 unless you traded in the pre market.

Entry on  February 13 at $46.43 (small positions)
Change since picked:     + 3.57   			
Earnings Date          03/18/10 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  February 13, 2009