Momentum Stocks

The oil and gas exploration sector has had many stocks climb to new highs recently and we feel this may be one of the sectors that shows leadership once we emerge from the recent market doldrums. We wouldn't buy all of these stocks but would choose one or two of the following if you didn't invest in BZP @ $13.85 a few weeks ago when we recommended it.

PQ @ $15.76 (Petroquest Energy) is engaged in the exploration and production of oil and natural gas in Oklahoma, Texas and the Gulf Coast basin. We would establish half a position here and enter the remaining half on a pull back to $14. Our stop loss will be set at $13.

CLR @ $28.08 (Continental Resources) is engaged in the exploration and production of oil and natural gas in the Rocky Mountain, Mid-Continent and Gulf Coast regions. We would establish half a position here and buy the remaining half on a pull back to $25.50. Our stop loss will be set at $24.50.

MMR @ $16.80 (Mcmoran Exploration), SGY @ $50.76 (Stone Energy), and SD @ $37.64 (Sandridge Energy) are also attractive and could be played on any weakness.

Watch List

Here is a look at some of the stocks we plan on buying if this weakness brings us to our next entry levels. GS @ $160, AAPL @ $118, CMED@ $40, NYX @ $62 and believe it or not, while we still don't like many financial's beyond Goldman Sachs, we are ready to dip our foot in on Citigroup (C) @ $22. We also like the Citigroup 2010 $10 Calls at $14.35.

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