Analyst Upgrades

• Expedia (EXPE) to buy from hold at Citigroup.
• Weatherford (WFT) to outperform from market perform at Wells Fargo.
• Abercrombie & Fitch (ANF) to buy from neutral at BofA/Merrill.
• MDC Holdings (MDC) to outperform from neutral at Credit Suisse.
• AutoNavi (AMAP) to buy from neutral at Goldman.
• Ciena (CIEN) and Nvidia (NVDA) to neutral from underweight at JPMorgan.
• Canadian Pacific (CP) to outperform from market perform at Raymond James.
• First Midwest (FMBI) and Quiksilver (ZQK) to buy from hold at Jefferies.
• Sonic (SONC) to neutral from negative at Susquehanna.
• MIPS Technologies (MIPS) to buy from hold at Benchmark Co.
• Arrow Electronics (ARW) and Avnet (AVT) to buy from hold at Stifel Nicolaus.

Sometimes, a big market washout like we had on Friday, when the S&P 500 fell 10 points and the Dow was down 170 points at its worst level, can reveal an awful lot about individual stocks. It's days like these when the winners stick out like sore thumbs and reveal just how much demand there is for their shares. On Friday, there was a collection of such stocks.

All the following names have had astounding gains in the past year, and it sure looks like they are prepared to continue on that same trajectory. These stocks stuck out like a sore thumb on Friday because of significant buying interest in a terrible broad market tape. None of the moves in these names was driven by news

Analyst Upgrades

• SINA (SINA) to overweight from neutral at Piper Jaffray.
• Texas Instruments (TXN), ON Semiconductor (ONNN), Xilinx (XLNX) and Valassis (VCI) to overweight from neutral at JPMorgan.
• Salesforce.com (CRM) to buy from hold at Canaccord.
• Peet's Coffee (PEET) to buy from neutral at Janney Capital.
• Invesco Mortgage (IVR) to overweight from equal weight at Barclays.
• BTU International (BTUI) to buy from hold at Wunderlich.
• Coca-Cola Femsa (KOF) to overweight from neutral at HSBC.
• Chipotle (CMG) to market perform from underperform at Morgan Keegan.

Analyst Upgrades

• U.S. Steel (X) to buy from neutral and Barnes & Noble (BKS) to neutral from sell at Goldman.
• Salesforce.com (CRM) to buy from hold at Jefferies.
• Dollar Tree (DLTR) to overweight from equal weight at Barclays.
• Edison International (EIX) to hold from sell at Citigroup.
• Analog Devices (ADI) to overweight from neutral at JPMorgan.

Analyst Upgrades

• Interpublic Group (IPG) to buy from hold at Deutsche Bank.
• Radware (RDWR) to outperform from perform at Oppenheimer.
• Fluor (FLR) and Waddell & Reed (WDR) to buy from hold, as well as AllianceBernstein (AB) to hold from sell, at Citigroup.
• MetroCorp (MCBI) and American Capital (AGNC) to outperform from market perform at Keefe Bruyette.
• International Flavors (IFF) to overweight from equal weight at Barclays.
• BioCryst (BCRX) and Southern Company (SO) to buy from neutral at BofA/Merrill.
• Bunge (BG) to overweight from neutral at HSBC.

Restaurant chain Chipotle Mexican Grill (CMG), has vectored from $90 to $200.65 in 2010, on both new restaurant openings, and a likely low/mid-single-digit increase in same-store sales.

The key phrase in the above being a possible 'mid-single-digit' SSS increase: a decent traffic and sales increase is not consistent with the U.S.'s current 'frugal consumer' trend, but Chipotle appears to be bucking the trend.

Chipotle operates restaurants in the fast casual dining segment, using fresh ingredients and traditional cooking methods to cook tacos, burritos, salads, and burrito bowls. As of the start of 2010, CMG had 956 restaurants in 35 states, with more than half in California, Ohio, Texas, Colorado and Illinois.

McDonald's (MCD) is scheduled to report Q3 EPS on October 21. Overall option implied volatility of 19 is below its 26-week average of 21, according to Track Data, suggesting non-directional near-term price movement.

Chipotle (CMG) is scheduled to report Q3 EPS after the market close on October 21. November put option implied volatility is at 43, December is at 39, versus its 26-week average of 37, according to Track Data, suggesting larger near-term price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Analyst upgrades:

• Citigroup upgraded Lubrizol (LZ) to Hold from Sell following the company's analyst day citing its continued pricing power in lubricants. Citi upped its target price for shares to $115 from $82.
• Janney Montgomery upgraded Viacom (VIA) to Buy from Neutral citing the company's ratings improvement, 2011 film slate, and video game pipeline. The firm has a $45 price target for shares.
• BMO Capital resumed coverage on Gammon Gold (GRS) with an Outperform from a Market Perform following the its equity issue. The firm has a $12.50 price target on the stock.
• Comerica (CMA) and First Horizon (FHN) were upgraded to Buy from Hold at Deutsche Bank.
• Prudential (PRU) was upgraded to Equal Weight from Underweight at Barclays.
• Itron (ITRI) was upgraded to Hold from Sell at Stifel Nicolaus.

When I discussed Chipotle Mexican Grill (CMG) back in January, I was a bit hesitant on buying the stock. If you look at the following chart, you'll notice that I was completely wrong to be even the slightest bit bearish. The company closed on Friday at $168.31, not far from the 52-week high of $170.

According to our analyst calls from last Friday, Jefferies & Co. initiated the stock with a hold rating. The question now is, should an investor agree with such a rating? A hold may not be a technical sell, but it definitely makes you think twice about buying.

Investors that have a time horizon longer than a couple of days are likely finding this market to be extremely difficult. The indices have been stuck in a range for months between around 1,040 and 1,130 on the S&P 500. The economic reports have been mixed and have offered very little visibility into what the future may hold. Volume has been extremely anemic in the stock market, which has contributed to the overall impression that no one has much conviction in the direction of equity prices.

While risky, it is times like these that investors may just be better off finding some high beta names that are exhibiting sustained relative strength in an effort to end the year in positive territory.

Analyst Upgrades

• Baird upgraded Oshkosh (OSK) to outperform from neutral, citing valuation as it believes post-Iraq U.S. military spending concerns are overdone. The firm keeps a $42 price target for shares.
• Goldman transferred coverage on CenturyTel (CTL) with a buy from a neutral and has a $42 price target on the stock. The firm believes CenturyTel could increase buybacks and or increase its dividend given free cash generation and low payout ratio.
• Lazard Capital upgraded Hatteras Financial (HTS) to buy from hold to reflect increased dividend projections. The firm has a $30 price target for shares.
• EOG Resources (EOG) was upgraded to neutral from underperform at Credit Suisse.
• Donaldson (DCI) was upgraded to neutral from underperform at BofA/Merrill.

Analyst Upgrades

• Auriga upgraded Leap Wireless (LEAP) to buy from hold following the company's Q2 results and analyst day, citing valuation, longer-term potential for consolidation and prospects for business improvements. Despite upgrading, the firm lowered its target for shares to $16 from $19.
• Goldman upgraded Barnes & Noble (BKS) to neutral from sell following the company's announcement to explore strategic alternatives. The firm raised its price target to $15 from $12.
• RBC Capital upgraded ESCO Technologies (ESE) to sector perform from underperform following the better-than-expected Q3 report. The firm raised its price target to $30 from $28.
• MetLife (MET) was upgraded to buy from neutral at BofA/Merrill.
• Priceline.com (PCLN) was upgraded to buy from hold at Stifel Nicolaus.
• HSBC (HBC) was upgraded to outperform from underperform at CLSA.

With all the mixed signals driving uncertainty and worry lately, the consensus has been a foggy windshield with no clear direction. We can't even tell if one of the largest bear market rallies in history is fizzling or pausing.

On Wall Street, uncertainty is certainly a buzz killer for the irrationally exuberant. If you need a towel to wipe away the fog, take a look at Your Cheat Sheet to the Psychology of Market Cycles.

While contemplating where we're headed, let's take a look at some data points that indicate the US has the potential to lead the world out of this recession ...

"Chipotle Mexican Grill (CMG) a 'fast-casual' restaurant chain, was started by Steve Ells in Denver, Colorado, in 1993, and it quickly became a big success, expanding rapidly in the Denver area," says growth stock specialist Timothy Lutts.

The editor of Cabot Stock of the Month explains, "McDonald's began investing in the company in 1997 and became the controlling shareholder in 1999. Using its cash and expertise, McDonald's grew the company from 14 restaurants in 1998 to 480 at the end of 2005. Then in January 2006, McDonald's sold Chipotle to the public."

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Activision Blizzard Inc. (ATVI) reported better-than-expected Q4 earnings and declared an annual dividend.
• Allstate Corp. (ALL) swung to better-than-expected Q4 earnings and also swung to a full-year profit.
• Buffalo Wild Wings Inc. (BWLD) shares tumbled after it posted disappointing earnings tied to costs.
• The Cheesecake Factory Inc. (CAKE) posted better-than-expected Q4 earnings but sales were flat.
• Chipotle Mexican Grill Inc. (CMG) earnings numbers for Q4 resulted in upgrades from two analysts.
• CVS Caremark Corp. (CVS) higher Q4 earnings matched the expectations of analysts, and shares rose.