Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

XM Satellite Radio (NASDAQ: XMSR) is a favorite speculative idea from technician Jack Rothstein, editor of Wealthcast. He explains, "We had viewed a move above $15.50 on a closing basis as a buy signal for XMSR and a necessary technical step to keep the current move into a new advance alive.

"The stock traded above that point right and is bullish on all cylinders, having busted through its declining 200-day moving average at 15.09. Technically, the stock is now free to move to 20 and challenge that level.

"When it happens is merely a guess. It will happen now that it broke through necessary points of resistance. It ought to be bought from current levels down to support at 15.25. If you believe in it, then you will give it room all the way down to 13.49 to stop the loss in case it fails.

"However, that doesn't appear to be in the cards right now. The stock appears to be firing on all cylinders and has blasted through to begin a new advance after building a decent base over the past 5 months after bottoming out.

"The bottom came in July after a brutal decline took it from a peak of 40.89, exactly two years ago, to fall to 9.63. It's in a new advance and ought to be held long. Overall, XMSR is my number one choice for 2007."

To see Jack's favorite conservative idea for 2007, click here.

Top Picks 2007: Technician tunes in XM Satellite originally appeared on BloggingStocks on Sat, 30 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Rite Aid (NYSE: RAD) is the favorite conservative idea for 2007 from Jack Rothstein, editor of Wealthcast. The technician notes, "RAD recently broke out above the top of its base, making it a low risk choice for 2007.

"It trades as liquid as water and is easy in and out. For added safety, the stock can be bought in stages down to the 4.75 zone. The buying may begin right now. It has solid support at 4.70. The 200-day average price is 4.44. The stop ought to be placed below that line at 4.39.

"RAD is a leading stock this year, up over 50%, and the current advance expresses no hint at turning. Having risen above the top of its trading range and base the other day hints at higher price zones down the road. It trades up on all cylinders with the 10-day line at 5.16.

"Technically, if it's able to angle higher and go topside 6.51 on a close over the next quarter, then it is likely to ramp to test the 10 zone. That is the risk-reward ratio. The odds, given the price pattern, favor a rise to test the high at 6.50 made over three years ago, and that accomplishment will enable RAD to take off."

To see Jack's favorite speculation for 2007, click here.

Top Picks 2007: Rite Aid has right prescription for Rothstein originally appeared on BloggingStocks on Sat, 23 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.