Analyst Upgrades

• Goodrich (GR) to overweight from neutral at JPMorgan.
• Ford (F) to neutral from underperform and CenterPoint Energy (CNP) to outperform from neutral at Credit Suisse.
• Dollar Financial (DLLR) and Edwards Lifesciences (EW) to buy from hold at Jefferies.
• Alterra Capital (ALTE) to buy from hold at Deutsche Bank.
• Cheesecake Factory (CAKE) and P.F. Chang's (PFCB) to buy from neutral, as well as SunTrust (STI) to neutral from sell, at Janney Capital.
• Arch Capital (ACGL), Axis Capital (AXS), PartnerRe (PRE), Everest Re (RE) and Transatlantic (TRH) to buy from hold, as well as W. R. Berkley (WRB) to hold from sell, at Citigroup.
• Optimer Pharm (OPTR) to buy from neutral at BofA/Merrill.

Analyst Upgrades

• Las Vegas Sands (LVS) to outperform from neutral at Credit Suisse.
• Boston Scientific (BSX) to outperform from sector perform at RBC Capital.
• Windstream (WIN) to buy from hold at Citigroup.
• Expeditors (EXPD) to buy from neutral at UBS.
• A123 Systems (AONE) to neutral from underperform and Chesapeake Midstream (CHKM) to buy from neutral at BofA/Merrill.
• AvalonBay (AVB) to outperform from neutral and Post Properties (PPS) to neutral from underperform at Cowen.

If last autumn you scooped-up shares of independent natural gas/oil play Southwestern Energy (SWN), which I first wrote about on June 5, 2009, at a price of $42.38, during their late summer swoon, you made the correct call, as SWN, as outlined, bottomed at/near $30.

And it goes without saying that Southwestern's business model remains attractive. The company is likely to record large increases in production in the immediate years ahead, and its low-cost producer status is appealing.

Analyst Upgrades

• BP (BP) to buy from hold at RBS.
• Symantec (SYMC) to buy from hold at Deutsche Bank.
• GenOn Energy (GEN) and Nationwide Health Properties (NHP) to buy from hold at Citigroup.
• Logitech (LOGI) and Patriot Coal (PCX) to neutral from sell, as well as ARM Holdings (ARMH) to buy from neutral, at Goldman.
• Silvercorp Metals (SVM) to outperform from market perform at BMO Capital.
• Cinemark (CNK) to equal weight from underweight at Morgan Stanley.
• Smith & Nephew (SNN) to market perform from underperform at Bernstein.
• Molex (MOLX) to overweight from underweight at JPMorgan.

Southwestern Energy (SWN - option chain) shares are rising today after the company forecast 2011 total gas and oil production of 465 to 475 Bcfe, which translates to net income of $555 to $565 million. Analysts have forecast 2011 earnings of $1.83 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SWN.

SWN opened this morning at $35.61. So far today the stock has hit a low of $35.49 and a high of $36.46. As of 12:10, SWN is trading at $36.12 up 0.45 (1.3%). The chart for SWN looks bullish and S&P gives SWN a positive 4 STARS (out of 5) buy ranking.

The shares of independent natural gas/oil play Southwestern Energy (SWN), which I first wrote about on June 5, 2009 at a price of $42.38, appear to have found support at/near $30, which bodes well for a continuation of the trade.

Southwestern's business model remains attractive. The company is likely to record large increases in production for the immediate years ahead, and its low-cost producer status is appealing. Due to a low natural gas price, Southwestern will not add any rigs in 2011, but production at its key Fayetteville Shale production zone will likely still increase more than 20% in 2011, after a 30-40% production rise in 2010. Meanwhile, the company's Marcellus area should boast about 35 wells by the end of 2010.

Analyst Upgrades

• Amazon.com (AMZN) was upgraded to buy from neutral at BofA/Merrill.
• Netflix (NFLX) was upgraded to outperform from perform at Oppenheimer and to neutral from sell at Janney Montgomery.
• Janney Montgomery also upgraded BJ's Wholesale (BJ) to buy from neutral.
• RW Baird upgraded Kforce.com (KFRC), SFN Group (SFN) and Young Innovations (YDNT) to outperform from neutral.
• NetSuite (N) was upgraded to neutral from underweight and Select Comfort (SCSS) was upgraded to overweight from neutral at Piper Jaffray.
• Flushing Financial (FFIC) was upgraded to outperform from market perform at Keefe Bruyette.
• National Instruments (NATI) was upgraded to buy from hold at Stifel Nicolaus.
• RBC Capital upgraded MDS Inc. (MDZ) to outperform from sector perform.

The shares of independent natural gas/oil play Southwestern Energy (SWN), which I first wrote about on June 5, 2009, at a price of $42.38, are trending in the wrong direction: down.

SWN has totally misbehaved during the past 10 months. Specifically, Southwestern Energy's chart has formed a bear-hug -- a bearish technical pattern, and that will have to be reversed for the shares to become attractive again. Hence, the stand aside noted in May remains in-place.

Analyst Upgrades

• Goldman Sachs upgraded BJ's Wholesale (BJ) to neutral from sell and has a $43 target on the stock. Note that private equity firm Green Equity took a 9.5% stake in the company. Shares were also upgraded at Jefferies to buy from hold.
• Stephens upgraded Covenant Transportation (CVTI) to overweight from equal weight after the company positively preannounced Q2 results. The firm raised its target for shares to $12 from $5.
• Leerink upgraded Arena Pharmaceuticals (ARNA) to outperform from market perform after the company signed a partnership deal with Eisai for U.S. commercialization rights to lorcaserin. The firm believes the deal removes a major concern and upped its target for shares to $6 from $5.
• Fortune Brands (FO) was upgraded to hold from sell at Citigroup.
• KeyBanc upgraded NiSource (NI) to buy from hold.
• Akzo Nobel (AKZOY) was upgraded to buy from neutral at UBS.

I first wrote about Southwestern Energy (SWN) on June 5, 2009, at a price of $42.38, and shares of independent natural gas/oil play have totally misbehaved during the past five months. Hence, it's probably best to stand aside at this juncture.

Specifically, Southwestern Energy chart has formed a bear hug -- a bearish technical pattern, and that will have to be reversed for the shares to become attractive again.

As analyzed in December 2009, the stock of Southwestern Energy (SWN), which I first wrote about on June 5, 2009, at a price of $42.38, formed a a short-term double-top near $50. But I still like the shares at this juncture, for the following reasons:

First, the sell-off from double-top appears to have found support at/near $41. Second, the mild uptrend dating back to mid-2009 remains in place.

TheStreet.com's Jim Cramer says the stocks like to move higher along well-worn paths.

With the usual suspects rallying -- gold and oil -- it's important to remember how the oil rallies have unfolded in the past. You have to be able to recall the oil pecking order of the petroleum complex ramp.

First to move in the drilling complex is Transocean (RIG) (Cramer's Take), the wildest trader in the group. Then it is National Oilwell Varco (NOV) (Cramer's Take). Forget that both of these are the least affected by the day-to-day price of oil. The market's real stupid on these oil moves, and that's what happens. On the oil side it is Occidental (OXY) (Cramer's Take), which at least is closely correlated and can have a big move throughout the day.

The markets were slightly up most of the day, but traders seemed to be unsurprised by big news from Dubai and Citi. Many of the "most actives" only moved up or down a percentage point or two. It was not a day in which the market showed any conviction which was surprising given the number of potential catalysts early in the day.

The numbers:

Dow 10,501.43 +29.93 (0.29%)
S&P 500 1,114.10 +7.69 (0.70%)
Nasdaq 2,212.10 +21.79 (0.99%)

Southwestern Energy's (NYSE: SWN) stock has meandered since the June 5, 2009 Buy recommendation at a price of $42.38, but rare is the day you should sell an oil and natural gas play, hence I'm Reiterating the Buy rating.

And the reason is obvious enough: natural gas and oil (which, by the way, was down, but only briefly, and never out) - will represent preferred U.S. energy sources for at least the next decade.

It goes without saying that natural gas/oil plays are favored in this neck of the woods.

And with good reason: natural gas and oil, which, by the way, was down (but only briefly), and never out -- will represent preferred U.S. energy sources for at least the next decade. And with the aforementioned in mind Southwestern Energy Co. (NYSE: SWN) is worth a review.