AUD - Automatic Data Processing $67.81 (+1.37)

Investors fleeing the battered down technology stocks are looking for stable companies that have a proven business model and steadily rising earnings. Automatic Data Processing definitely fits into this category. An explosion in the growth of new businesses has certainly helped AUD. The Company provides payroll services and many other human resource services. AUD can become the entire Human Resources Department to smaller companies. This leaves small business owners with more time to concentrate on profits and less time to worry about dealing with payrolls and other employee services. Last quarter, AUD met analysts' expectations for profits of $0.27 a share. On January 12th, the Company will report its current quarter. Profits are expected to be $0.36, which is five pennies more than it earned in the same period a year ago. Revenue growth is in the 17% area and has been growing steadily for the past three-quarters. AUD's last split was two years ago and it was announced when the stock was trading at $81.94. Obviously, the stock has some work to do before it reaches that price level again. AUD's share price has been steadily rising ever since it crossed back over the 50-DMA in mid-October. The 50-DMA currently provides good longer-term support at $64.16. AUD established a new high at $68.38 on Friday. Momentum investors have not had much to cheer about lately but perhaps they will jump on board to help extend AUD's rally. The MACD is rising and looks solid. The RSI is telling us that this current move has plenty of room to go higher before the stock becomes overbought. OBV and Money Flow are both positive and look good. We are placing our initial stop at $64.00, just below the 50-DMA.

Picked on November 19th @ $67.81 Change since picked +0.00

D - Dominion Resources $62.69 (+3.69)

Dominion Resources is a utility holding company for Virginia Electric and Power, Consolidated Natural Gas Company, and Dominion Energy. Through its subsidiaries, Dominion Resources offers electric energy generation, transmission and distribution as well as natural gas production, transportation, and distribution. Shares of D have performed relatively well over the last eight months. The stock has come from a 2-year low of $34.81 on March 1 to an all-time high of $62.69 on Friday. D has been building momentum after three successful tests of support at the 50-dma over the four weeks. We believe that the stock may be ready to run. The stock also has some split potential. Their last split took place back in early 1992 when the stock was trading in the $45-55 range. The company set a 3:2 split out of a BoD meeting. Currently, shares of D are in split territory. However, they do not have enough shares for a split and the company has already announced earnings, but that certainly can be changed with a BoD meeting and a special proxy. Going forward, D has support at the 5-dma, now up to $60.19 with stronger support at the 20-dma, currently at $59.06. There could be resistance somewhere in the $63 to $68 range. Resistance is not very clear because D closed at an intra-day/all-time high on solid volume. This could be related to option expiration, so we are waiting for entry points on a bounce off of $60.19 on midday volume of 350,000 shares or more. A breakout above $65 on heavy volume (250,000 shares within the first hour) would show continued momentum and could be considered an entry point. We plan to set stops at $57.50, just below the 50-dma.

Picked on November 19th @ $62.69 Change since picked +0.00

THC - Tenet Healthcare Corporation $42.44 (+2.56)

Tenet Healthcare Corporation (THC) is a nationwide provider of health care services which owns and or operates 111 hospitals and related businesses serving communities in 17 states. The hospitals offer acute care services, and most offer operating and recovery rooms, radiology services, intensive care units, pharmacies, clinical labs, and physical therapy services. Currently, the company is expected to grow earnings by 12% through next year, 10% above the expected industry average. Adding more excitement to the play, THC is now trading just below its most recent split level of $44.38, which we feel can be overtaken with a strong uptrend and good buying. Presently, shares have just broken above firm resistance near $40 and good volume (4.0m shares traded) now suggests that they could be on their way to challenge the $45 mark. However, our initial entry point will be signaled when the stock advance sharply above Friday's all time high of $43. Higher up, a tougher challenge at $50 could present an excellent opportunity to lock in gains. For support, we'll look to Thursday's close of $40.88 to be followed by a stronger base at $40, bolstered by the 5-dma of $40.24. Sharp bounces from either of these levels, when accompanied by good mid-day volume of 1 million shares, will present low-risk entry points. We'll set a firm stop below these levels at $39.50, to protect us against a quick trend reversal. Consider using strength in the S&P Health Care Index (HCX.X) to time your entries.

Picked on November 19th @ $42.44 Change since picked 0.00