SDS - SunGard Data Systems $62.65 +0.61 (+1.74)

Tuesday's Comment:

SunGard tacked on $0.61 during Tuesday's session after a Deutsche Bank Alex Brown analyst initiated coverage of the computer service provider with a "buy" rating. Mark D'Annolfo of Duetsche Bank believes that SunGard combines the predictability of a computer services stock with the higher margins of a software company. He also likes the fact that SDS almost dominates its core businesses. We couldn't agree more. Given the ringing endorsement, we would have thought that shares of SDS would have responded more positively. However, the stock only traded 440,000 shares, well shy of its three-month average of 940,000 shares. Going into the later part of this week, we will be watching for volume to move back towards 900,000 shares as SDS tests resistance at $63. Traders interested in initiating new positions in SDS could consider doing so on a break through $63 on volume that puts SDS on pace to do 950,000 shares for the day.

Picked on May 16th @ $62.00 Change since picked +0.65 Stop Loss @ $58.40

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