Analyst Upgrades

• Citigroup (C) to outperform from market perform at Bernstein.
• Cubist Pharma (CBST) to outperform from neutral at RW Baird.
• Pentair (PNR) to buy from hold at Citigroup.
• Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
• SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
• MGM Resorts (MGM) to neutral from Sell at Janney Capital.
• Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
• Mellanox (MLNX) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
• IDEX (IEX) to outperform from perform at Oppenheimer.
• Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
• Ctrip.com (CTRP) to positive from neutral at Susquehanna.
• Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
• Quicksilver (KWK) to outperform from market perform at BMO Capital.

Analyst Upgrades

• Citigroup upgraded Colgate (CL) and Phillips-Van Heusen (PVH) to buy from hold.
• Wells Fargo upgraded IDACORP (IDA) to outperform from market perform.
• Union Pacific (UNP) was upgraded to outperform from neutral at RW Baird.
• Goldman upgraded Quicksilver (KWK) to neutral from sell.
• Republic Airways (RJET) was upgraded to buy from hold at Deutsche Bank.
• BofA/Merrill upgraded GAMCO Investors (GBL) to neutral from underperform.
• Senior Housing (SNH) was upgraded to outperform from market perform at JMP Securities.

Analyst upgrades:

• Jefferies upgraded Quicksilver (NYSE: KWK) to Buy from Hold as it believes the company has many options to resolve its liquidity crisis. The firm expects shares to move towards its $10 NAV estimate and raised its target price to $10 from $7.
• Deutsche Bank upgraded Omnicom Group (NYSE: OMC) to Hold from Sell following the Q1 results as the company's margins are holding up better than previously thought. The firm raised its target price on shares to $31 from $21.
  
• Deutsche Bank also upgraded Universal Health (NYSE: UHS) following the company's better than expected Q1 results. Shares were lifted to Buy from Hold and the firm raised its target on the stock to $60 from $45.
• Barclays (NYSE: BCS) was raised to Buy from Reduce at Nomura.
  
• Orient-Express (NYSE: OEH) was lifted to Neutral from Underweight at JP Morgan.
  
• CVS Caremark (NYSE: CVS) was upgraded at Goldman to Conviction Buy from Buy.

Analyst upgrades:

• Citigroup upgraded Research in Motion (NASDAQ: RIMM) to Buy from Hold and added the stock to its Top Picks Live List. The firm believes RIMM's outlook is more secure given its unit growth trajectory and stabilizing margins. Citi raised its target on the stock to $100 from $65.
  
• Morgan Stanley upgraded Microsoft (NASDAQ: MSFT) to Overweight from Equal Weight following the company's Q3 results it believes growth is accelerating and expectations are low. The firm raised its target on the stock to $24 from $21.
  
• Deutsche Bank upgraded Huron (NYSE: HURN) to Buy from Hold as it believes bad news is already priced in and FY09 expectations are achievable. The firm keeps a $46 target on the stock.
• Credit Suisse (NYSE: CS) was upgraded to Neutral from Sell at UBS.
  
• Quicksilver (NYSE: KWK) was raised to Buy from Neutral at Banc of America/Merrill.
  
• EIG Resources (NYSE: EOG) was lifted at Goldman to Conviction Buy from Neutral.

Analyst upgrades:

• UBS upgraded Dollar Tree (NASDAQ: DLTR) to Buy from Neutral but lowered its target to $42 from $45 following the solid Q4 report. The firm expects Dollar Tree's cost containment to continue. JP Morgan upgraded shares to Overweight from Neutral on valuation as it believes the recent pullback is overdone and the company set achievable FY09 guidance. The firm has a $43 target on the stock.
  
• JP Morgan also upgraded Smithfield Foods (NYSE: SFD) to Overweight from Neutral on valuation as they find the stock oversold at current levels.
  
• KeyBanc upgraded Nordson (NASDAQ: NDSN) to Hold from Underweight based on valuation, strong balance sheet and cost reductions, and a solid track record of execution.
• Philips Electronics (NYSE: PHG) was upgraded to Neutral from Underweight at HSBC.
  
• Aeropostale (NYSE: ARO) was raised to Equal Weight from Underweight at Barclays.
  
• Carter's (NYSE: CRI) was upgraded at Goldman to Neutral from Sell.

Analyst upgrades:

• Jefferies upgraded shares of Abercrombie & Fitch (NYSE: ANF) to Hold from Underperform on valuation. The stock has gone down 40% since they initiated coverage on September 19. The firm maintains a $29 target.
  
• Citigroup upgraded EOG Resources (NYSE: EOG), Quicksilver (NYSE: KWK) and Southwestern Energy (NYSE: SWN) to Buy from Hold on their belief U.S. natural gas-focused E&P companies have near-term upside.
  
• Barclays upgraded Whole Foods (NASDAQ: WFMI) to Equal Weight from Underweight citing the $425M private equity investment, which reduces liquidity risk, and its reduced cost structure.
• Brandywine Realty (NYSE: BDN) and AvalonBay (NYSE: AVB) were upgraded to Neutral from Underperform at Merrill Lynch.
  
• tw telecom (NASDAQ: TWTC) was upgraded to Neutral from Underweight at JP Morgan.
  
• AmeriCredit (NYSE: ACF) was upgraded to Market Perform from Underperform at Friedman Billings.

Analyst downgrades:

• Jefferies downgraded Macquarie Infrastructure (NYSE: MIC) to Hold from Buy to reflect the company's sensitivity to the economic slowdown and funding risk. The firm lowered their target to $9 from $40 after the company announced a dividend reduction.
  
• Sanofi-Aventis (NYSE: SNY) was cut to Sell from Neutral at UBS due to the company's exposure to potential generic competition and a lack of new products.
  
• Friedman Billings downgraded Cleveland Cliffs (NYSE: CLF) to Market Perform from Outperform and lowered their target to $42 from $50 to reflect the risk of further production cuts.
• Credit Suisse lowered Acme Packet (NASDAQ: APKT) to Neutral from Outperform.
  
• Delta Petroleum (NASDAQ: DPTR) was downgraded at Deutsche Bank to Sell from Hold.
  
• Siemens (NYSE: SI) was downgraded to Sell from Buy at UBS.

Analyst initiations:

• Goldman initiated Bristol-Myers (NYSE: BMY) with a Buy rating and $27 target as they believe it is making progress in becoming a mid-sized specialty biopharmaceutical company. The firm expects the company to be active in M&A and to spin-off or divest its slow-growth or fast-growing assets, such as virology and oncology.
  
• Goldman believes Pfizer (NYSE: PFE) needs a "radical transformation" and restructuring that includes a break up, spin and merger in order to outperform over the next several years. Shares were assumed with a Sell rating and $19 target.
  
• Johnson & Johnson (NYSE: JNJ) was initiated with a Neutral rating and $65 target at Banc of America. The firm prefers to be on the sidelines given uncertainties surrounding 2009 revenue growth and the potential for negative rhetoric out of Washington on pharma costs.
• Acorda (NASDAQ: ACOR) was started at RBC Capital with an Outperform rating and $30 target.
  
• Cavium Networks (NASDAQ: CAVM) and NetLogic (NASDAQ: NETL) were initiated with Neutral ratings at Cowen.
  
• Edwards Lifesciences (NYSE: EW) was assumed with a Buy rating and $61 target at Piper Jaffray.

Lots of big important news out lately, but I'm not doing anything differently. Nor will I ever. Because I've matured enough over the past decade to sit, wait and strike only when I see all the variables aligned. And that time still is not upon us. By buying The Bear Stearns Companies Inc. (NYSE: BSC), JPMorgan Chase & Co. (NYSE: JPM) may or may not be getting a great deal, but I'm not smart, well-informed or interested enough to really care because there are still too many conflicting variables. I only care for ideal trading opportunities, of which there are none (for my style of trading).

Since January, I've been calling for a 10%+ market drop and warning about a potential disaster not because I'm psychic, but thanks to archaic industry regulations limiting transparency, for industry outsiders, there's really no way how deeply troubled these financial firms are. Judging by Bear's buyout price of $2, even well-informed industry insiders are scared to pay too much to take on such risk.

So, just as when I featured them last week, perfectly downtrending stocks like Sprint Nextel Corporation (NYSE: S), Citigroup Inc. (NYSE: C) and Merrill Lynch & Co. Inc. (NYSE: MER) will probably continue downtrending, only more steeply this week around.

Readers of this space know that the oil/natural gas and oil/natural gas services sectors have been two preferred sectors. And with good reason: solid-growth emerging markets have increased the value of oil, natural gas and a host of other commodities, which bodes well for energy suppliers and those who service them. Quicksilver Resources is one such oil/natural gas play.

Quicksilver Resources (NYSE: KWK) explores for, acquires, produces, and sells natural gas, natural gas liquids and crude oil primarily in the United States and Canada. The company also markets and transmits natural gas.

Analysts like KWK's increased average daily production for liquid natural gas, reserves of 1.55 trillion cubic feet of natural gas equivalent, and sector position.

In sharp contrast to the ten horrifically downtrending stocks I warned against buying in this article, today I feature these 10 solidly uptrending stocks.

AK STEEL (NYSE: AKS)
Gilead Sciences (NASDAQ: GILD)
United States Oil (AMEX: USO)
Quicksilver Resources (NYSE: KWK)
Kinross Gold (NYSE: KGC)
Yamana Gold (NYSE: AUY)
streetTRACKS Gold (NYSE: GLD)
Capstone Turbine (NASDAQ: CPST)
Converted Organics (NASDAQ: COIN)
Steel Dynamics (NASDAQ: STLD)

It's charts like theirs that make you wonder why you're messing around with any other stocks. Ahhh, if it was only that easy. No matter that all the stocks listed above are making new highs, now the concern is that they may have come too far too fast. In 2008, several of these stocks-the gold plays in particular-have risen nearly 50%. Obviously the oil stocks have also been surging, but how much further can the "black gold" plays really run?

MOST NOTEWORTHY: ConocoPhillips (COP), Transocean (RIG), LifePoint Hospitals (LPNT), EOG Resources (EOG) and Quicksilver Resources (KWK) were today's noteworthy downgrades:

• Banc of America cut ConocoPhillips (NYSE: COP) to Neutral from Buy on valuation and the lack of upstream catalysts.

• Deutsche Bank cut Transocean (NYSE: RIG) to Hold from Buy based on the GlobalSantaFe (GSF) merger.

• Raymond James downgraded LifePoint Hospitals (NASDAQ: LPNT) to Market Perform from Strong Buy following the company's cut in guidance. Merrill Lynch downgraded LifePoint Hospitals to Neutral from Buy.

• Citigroup downgraded EOG Resources (NYSE: EOG) and Quicksilver Resources (NYSE: KWK) to Sell from Hold as both trade above the sector averages for NAV and cash flow and neither is well protected in the likely event commodity prices deteriorate...

OTHER DOWNGRADES:

• BMO Capital downgraded Biovail (NYSE: BVF) to Market Perform from Outperform.

• Brean Murray cut Spectrum Pharmaceuticals (NASDAQ: SPPI) to Sell from Buy.

• Wedbush downgraded Cosi Inc (NASDAQ: COSI) to Hold from Buy.

• RBC Capital downgraded Ventana Medical (NASDAQ: VMSI) to Sector Perform from Outperform.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).