BMET - Biomet $38.19 +0.88 (-0.25)

This week's huge market swings have essentially left Biomet unchanged for the week. We think that Biomet is one of the stronger stocks out there, and if this comeback rally in the market can keep going, we could have a winner on our hands. On December 13th, the company is expected to report earnings of $0.29, which will be four pennies above the earnings reported for the same quarter a year ago. The growth can be attributed to technological advancements leading to new product introductions, as well as an aging population that increasingly needs orthopedic therapy to treat bones that become more brittle with age. There is some concern that Biomet may be fairly priced with a P/E of 55.34. However, with so many stocks in technical breakdown patterns, Biomet is one of the few stocks that possesses a healthy chart. On the plus side, the stock closed today just slightly below its high print of the day. The pullback will likely be over if the stock can trade above today's high of $38.31 tomorrow. If that happens, then the all time high of $40.25 will likely be tested. Longer-term support is still provided by the 50-DMA at $34.06 and we will maintain our stop just below this level at $33.00. The RSI is no longer in overbought territory. Therefore, the stock could be ready to stage a run into new high ground without the resistance of an overbought condition. Additionally, On-Balance Volume (OBV) is still strong, which tells us that Biomet still has the opportunity to rally from here. If we are not stopped out of this position, we will exit right after a split announcement or just before the December 13th earnings release.

Picked on October 31st @ $36.19 Change since picked +2.00

CEFT - Concord EFS $41.06 +0.69 (-0.13)

Concord EFS, a leading provider of ATM card and credit card authorization services, is still consolidating. Shares of CEFT traded down on Monday, hitting an intra-day low of $38.81 before rebounding to a close of $40.38 on average volume. On Tuesday, CEFT rallied along with the rest of the market, but the stock reversed directions after hitting resistance at the 5-dma. Going forward, support is the 20-dma at $40.56 with stronger support at $38.81, Monday's intra-day low. Resistance is the 5-dma of $42.31 and then the November 10 intra-day high of $43.06. We plan to start new plays on a bounce off of $40.56 or a move above $42.31 on volume of at least 1 million shares by midday. Our stops remain at $37 to minimize risk.

Picked on October 31st @ $41.31 Change since picked -0.25

SEIC - SEI Investments Company $87.94 +0.13 (+2.38)

Driven by business growth in the asset management and technology segments, SEIC has successfully increased its revenues by a compounded annual rate of 23% over the past three years. The company is expected to improve its sales growth to 34% this year, reflecting the company's success in growing managed assets. In 2001, revenue growth is expected to slow to around 27%, as consolidation in the banking industry will likely offset profits. Still, the company leads the sector in revenue growth by 10%. For our play, the stock has maintained its tight range this week on light volume near the $88 mark. Since the beginning of the month, SEIC has held in this consolidation zone and will need to close above it ($90.75) to signal a breakout. Yesterday's sharp bounce off $85 reconfirmed resistance at the lower end of this range and will continue to be a good entry point for future retracements. To protect us against a fall below this level, continue to keep a firm stop at $84. Still, we think there is ample room on the upside for the stock to run. With that said, we'll look above the upper congestion zone for the all time high of $92.25 to offer an initial test, with tougher opposition to follow at $95 and $100. Good daily volume of 400 thousand shares traded will help to validate low-risk entry points, when SEIC bounces sharply from support or advances above resistance.

Picked on November 12th @ $90.25 Change since picked -2.31