Thursday, October 12, 2006

Trade Ideas: DPZ

The Trade Ideas scan was pumping out potential picks in rapid fashion; 8 picks were generated in well under 1 minute. A number of stocks ran in the 40s in terms of appearance frequency.

One to make a rapid reversal through the day was Domino's Pizza Group (DPZ). The company reported earnings pre-market which caused the stock to gap down - before rising higher throughout the day. Substantial resistance sits at $28.50, but the gains should be enough to reverse the June "Death Cross" between the 50-day and 200-day MAs. Stop placement is hard because of the wide candlestick - cautious players may wish to wait for a narrow-trading bar before entering. The projected target is $36.

Domino’s Pizza, Inc., through its subsidiary Domino’s, Inc., operates as a pizza delivery company primarily in the United States. It sells and delivers pizzas under the brand name Domino’s Pizza. As of June 22, 2006, the company operated through a network of 8,079 company-owned and franchise stores located in approximately 50 countries. It also operates 17 regional dough manufacturing and distribution centers in the United States and 8 dough manufacturing and distribution centers outside the contiguous United States. Domino’s Pizza was founded in 1960 and is headquartered in Ann Arbor, Michigan.

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