IGT - International Game Technology $34.88 +0.44 (+1.50)

International Game Technology is the leading designer and manufacturer of computerized casino gaming products and video gaming machines. The Company sells its products in the U.S., as well as several markets around the world. The stock hit a bottom on February 28th, when it traded down to an intra-day low of $17.44. On Tuesday, shares of IGT traded to a new 52-week high of $35.88 on three times average daily volume. The move came on the heels of a better-than-expected preliminary earnings announcement from IGT Tuesday morning. We feel that the stock could be ready for an earnings run into the Company's actual earnings release, scheduled for 11/7 before the bell. We may also get a split announcement with the earnings report. IGT has the necessary shares required for a split and the share price is at the low end of its historic split range. On the technical side, IGT has light support at Monday's close of $34.44, with stronger support at the 10-dma of $33.63. Resistance is Tuesday's high of $35.88 and then $38. We are looking for entry points on a bounce off of $34.44 or a breakout above $35.88 on volume greater than 300,000 shares by midday. We plan to set stops at $32.50 to limit losses.

Picked on Oct 10th @ $34.88 Change since picked +0.00

SGR - Shaw Group Inc. $72.63 +2.38 (+2.63)

The Shaw Group achieved a new 52-week high on Tuesday on 506 thousand shares, nearly twice the three-month average of 269 thousand. The company is a supplier of fabricated piping systems in the U.S., and a supplier of integrated piping systems and construction services worldwide. Shaw has scoffed at the negative trend in the overall market and has appreciated 23% in the last three weeks. Next Thursday, October 19, the company is scheduled to report earnings. The First Call consensus estimate is for a profit of $0.50 versus a profit of $0.43 in the same year-ago period. Shaw has beaten its earnings forecast the past four quarters. Technically, we don't see this company as a until they hit the century mark; however, it should be noted that it does have enough authorized shares to announce a stock split. Shaw priced an additional 4 million shares of its stock at $63.50, to be delivered on October 12, but the offering doesn't seem to be affecting the company's share price. In fact, it rose on the news on Friday. Currently, the stock is encountering resistance at Tuesday's high at $75.50. Support is measured at $70.00, the 5-dma at $68.35 and the 10-dma at $67.80. If you are considering opening a new play on Shaw, watch for better than average volume. Broad market support from the Dow Jones Industrial Average (INDU) and the Industrial Index (ND) should also help bolster shares higher. We will place our stop just below support at $67.00. As a reminder to all, it is our policy to never hold a position through earnings, so we will be out of this play before the open of trading on October 19th.

Picked on October 10th @ $72.63 Change since picked 0.00