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PLAY > New Plays Wednesday, May 16, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

SDS - SunGard Data Systems $62.00 +3.05 (+5.53)

SunGard specializes in offering information technology solutions to the financial community. They have products that make it easier for companies to web-enable clients, process transactions electronically and outsource business-critical operations. Fundamentally speaking, the company has topped analysts' earnings expectations for the last four quarters in a row. With the Fed cutting rates for the fifth time this year, SDS is hoping that this leads to a ramp up in trading that keeps SunGard's string of double digit profit growth alive. Looking at the chart, SDS has just broken out of a cup and handle formation on strong volume of 1.4 million shares. This represents an increase of 300,000 shares over SDS's three-month daily average volume. This is precisely what you want to see following a period of sideways action on lower volume. Today's strong move also higher helped to avoid a sell signal out of SDS's MACD. Going forward, new entries could be timed on a bounce off support at $60, or more aggressive traders could pick up the stock as long as it doesn't trade above today's high of $62.75. Look for daily volume to remain in the 1 million-share neighborhood on either of these moves. We are placing our stops at support of $58.40 to protect against a reversal.


Picked on May 16th @ $62.00
Change since picked +0.00
Stop Loss @ $58.40
 
Interactive Chart Quote News First Call on SDS
 

New Candidate Plays

ITG - Investment Technology Group $54.52 +1.69 (+3.61)

By lowering the costs of trading for institutions, ITG provides their clients with an edge in the highly competitive financial services industry. This is because the lower trading costs can be passed onto the clients in the form of lower management fees. ITG has also benefited from increased coverage by the brokerage community. Since the first of the year, three additional brokerage firms have picked up ITG. Just recently the stock was initiated with a "buy" rating from Bear Sterns. Turning to ITG's impressive chart, the stock has just successfully broken out of a symmetrical triangle formation. This is usually a bullish sign for a stock, and according to the width of the triangle, the next stop for our new play is $70. Traders might want to consider initiating new plays in ITG if the stock can settle back at least $1.00 on low volume of less than 100,000 shares by midday, with a subsequent bounce into the close. Otherwise, aggressive traders might want to see if ITG can conquer resistance at $55.00 on volume of at least 150,000 by midday before initiating new positions. We are setting our initial stop at $51.40 to protect on the downside.


Picked on May 16th @ $54.52
Change since picked +0.00
Stop Loss @ $51.40      
 
Interactive Chart Quote News First Call on ITG
 

New Momentum Plays

None

New Plays Index

 


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