FREDAlert! April 5, 2010

FREDAlert!

Volume 2, Issue 5
April 5, 2010

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We are going to add the following three stocks to our
list as of today’s close: HAL, RRGB, and MOS. See below for parameters. Our
reasoning is this:

  1. The market looks
    strong intermediate term and two stocks have already pulled back to good
    buy points – even if we do get a sharp drop, these stocks may have already
    corrected. These stocks are MOS and RRGB.

  2. Oil is looking
    better and better.
      HAL is
    attractive at these levels. Indeed, it was more attractive a few days ago!

While we cannot add to the list slowly, we advise
adding these slowly, over the week, with the idea of getting our positions
either on a correction or on a move through 70 on the IWM. Note we are using a
pretty broad stop on RRGB so add a commensurate position size. We continue to
trade close to that area and we expect to either correct or break through very
soon.

  • HAL: First
    target is 33.60 then 37.10: STOP 27.30

  • RRGB: First
    target is 26.20, then 29.30. STOP 21.50

  • MOS: First
    target is 62 then 67. STOP: 52