Tuesday, October 17, 2006

Trade Ideas: SSP, HON, RA,CBU, PGL, SCG, SO, STT

The focus of the day was 12K on the Dow (will Tuesday be the day?). But there was decent activity all around; 8 picks covered a time span of 4 minutes by the Trade Ideas scan.

Over the last 2 months, Scripps E W Co (SSP) and Honeywell (HON) enjoyed bullish crosses of the 50-day MA by the 20-day MA. Reckson Associate Realty (RA) suffered a bearish cross and a bullish cross of the 50-day and 20-day MAs over the same period. Peoples Energy (PGL) was the only pick to be under the influence of a bearish cross of the 20-/50-day MAs. The remaining picks are in mature bullish rallies.

Over the last year the following picks look well positioned to gain: Reckson Associate Realty (RA) has shaped a nice 3-month handle, Peoples Energy (PGL) looks to have broken from a bullish flag, State Street Corp (STT) may yet form a handle off $66 resistance, and SCG could break from a bullish ascending triange. As for price targets: look for $53 from RA, $48 from PGL, $75 from PGL, and $45 from SCG. For the remaining picks - look for a more substantial consolidation in their 1-year charts.

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