Trade Ideas for January 29, 2010

Today they announced that the economy grew at a 5.7% clip – which to me quite honestly is hard to believe – and wouldn’t be surprised to see one heckuva downward revision come next month (boy – aren’t I quite the optimist). Later on you also have the Chicago PMI at 9:45 and Consumer Sentiment at 9:55.

There will be a number of companies announcing earnings today, but the only one of major significance is Chevron (CVX).

Obviously, futures enjoyed the GDP report as they are up strong with 62 points in the Dow, 17 in the Nasdaq and 7.5 in the S&P.

Here are Today’s Trade Ideas…

Potential Swing Trade (Long): Bed Bath & Beyond (BBBY) – After gapping up strongly in the early part of the month, BBBY, has managed to fill that gap and find support at the 50-day moving average at the same time. My ideal stop on BBBY would be 37.99.

Click Here to See the Rest of My Trading Ideas

Potential Swing Trade (Short): Alaska Communications Systems (ALSK) – This is another one of my favorite shorts from the year of 2008, so when this stock pops up on my screens it is hard for me to ignore. So far you have a head & shoulders pattern that peaked in late December at 8.75, confirmed the pattern, and then of late has rallied a bit without violating the downward-trend. My stop for ALSK would be 8.37.

Bounce Plays: Qualcomm (QCOM) – This stock took a pounding yesterday on some not-so-great news. While this would be considered a high-risk play, you nonetheless could see a significant bounce out this stock. Also encouraging is the fact that QCOM managed to finally find support, during its free-fall, at its October lows. A descent stop here would be 39.30.

Pullback Opportunities: Plexus Corp (PLXS) – After rising 20% the past couple of weeks, this stock put in nice bearish engulfing pattern which could be indicative of buyers taking their gains and looking elsewhere. You’ll want to put a stop-loss in at 35.61.