Coinstar (ticker: CSTR) is fast-becoming an emerging momentum play. The company is approaching a $1 billion enterprise due to their red hot Redbox located at the front of every grocery store all over the country.

Redbox dishes out DVD rentals for only a $1 with plenty of feature titles licensed from Paramount Home Entertainment, a division of Viacom (see: http://www.hauteliving.com/blog/viacom-kicks-off-the-new-decade-with-viable-strength/). Gary Cohen, SVP of Redbox, said, “From road warriors to moms on the run, the iPhone app from Redbox helps customers rent and reserve at any of the thousands of neighborhood locations nationwide.”

Recently, the iPhone app from Redbox surpassed 1 million downloads. Keep a close eye on Coinstar as they steal more business from Blockbuster.

Meanwhile, Netflix (ticker: NFLX) has a market cap over 3 times that of Coinstar. Founder and CEO Reed Hastings possesses the key leadership quality of adaptability — a quality he must have learned while serving in the Peace Corps in his younger days.

His company’s stock has doubled over the past year and grown to serve over 12 million subscribers. Analysts forecast Netflix to double their subscriber base by 2016. A key catalyst is their continuing investment in streaming online movies, ultimately the customer’s next destination for viewership.

On the flip side, Blockbuster (ticker: BBI) was just too late to the online game. The company is now a penny stock! Blockbuster is like an old-fashioned travel agency in the early 90s that didn’t see the Internet boom coming. Eventually, the old-fashioned, traditional travel agencies were run over by online travel agencies like Expedia, Orbitz and Yahoo! Travel. Lesson learned by Blockbuster: adapt to change, otherwise get left behind.

Lastly, keep your eye on TiVo (ticker: TIVO). This week, TiVo announced they are ready to release new DVRs this spring. Unlike the current models, critics are calling the new device a solution to integrating TV and Internet content.

The TiVo Premiere is the answer to the company’s urgency to spark the growth of its stagnant 1.5 million customer base. Price could be an issue, as the new DVRs will range from $299-$499 in addition to required subscription fees ranging from $12.95 a month to $299 for three years.

TiVo CEO Tom Rogers said, “We’re moving toward get anything you want whenever you want it.” A search for Penelope Cruz on the new TiVo DVRs would bring up her movies that are showing soon on TV, available for rental or purchase through Amazon.com (ticker: AMZN), as well as related YouTube videos. Sounds like a convenient one-stop shop library for those willing to pay.

Furthermore, TiVo just won an intellectual property case worth $300 million against EchoStar Communications Corp. (ticker: SATS) the parent company of Dish Network Corp. (ticker: DISH). The win means companies like Comcast Corp. (ticker: CMCSA) and DirecTV (ticker: DTV) must enter into commercial arrangements with TiVo which will yield future licensing fees.

Three new pioneering options are unfolding before our eyes. Which one will you integrate into your experience? Your answer may lead to a great investment.

Disclosure: No positions in the companies mentioned.

To get entry points, stop-loss points, and profit targets for our fresh March watch list stocks and Featured Trade, simply try a 14-day complimentary trial to Wall St. Cheat Sheet Premium by visiting here:

http://wallstcheatsheet.com/newsletter/

Our partners FusionIQ state: “TiVo Inc. (TIVO) whose service allows viewers to locate and record multiple shows, control live television, choose viewing preferences, and access their customized lineup of shows scored a new high volume, breakout. This breakout comes one day after TIVO scored a new FusionIQ timing BUY signal. With an unbiased point and figure target of $ 16.50 and a 100 FusionIQ technical ranking, TIVO shares look to have solid upside potential if purchased on pullbacks. Fundamentally an imminent settlement with Dish Network (DISH) is an added catalyst that is likely to drive shares.” To learn how you can get an edge trading/investing with FusionIQ’s powerful platform, click here to watch my product review and take advantage of our special Wall St. Cheat Sheet 20% discount.

Dr. Brett Steenbarger, author of The Daily Trading Coach, teaches us some signs of a Downtrending Day:

* Inability to take out overnight highs on economic news;

* Break below the opening price range (blue line);

* NYSE TICK consistently negative;

* Intermarket themes show strong dollar, weak commodities;

* S&P 500 sectors consistently down from their opening prices;

* S&P 500 Index trading consistently below its volume-weighted average price;

* Volume in ES futures consistently hitting bids over lifting offers;

* Price consolidations at successively lower prices (blue arrows above). (Source: TraderFeed)

Corey Rosenbloom, the Technical Analysis Professor, submits: Let’s take a look at the full S&P 500 rally from the March 2009 lows and take a special look at daily readings of Breadth and Comparative Volume to see that Internals surged higher and confirmed the initial rally but lately in an ‘about-face,’ have been failing to confirm the new 2009 price highs.  Let’s take an objective look at price and underlying internals. (Source: Afraid to Trade)

Precision Capital Management offers a very cool chart this week as a follow up to our Market Profile column with Tom Alexander: The S&P 500 has recently been up against its most formidable resistance since the start of the 2009 rally.  Pictured above is SPY with volume at price (red) beginning at the October 2009 high.  The green horizontal line marks halfway between the two greatest points of control, which roughly coincide with VWAP, also anchored from the October 2009 high.  The bulls and bears continue to battle it out here as a failure could see price trade down to lower anchored VWAP support at 101.96 or 91.96, and a breakthrough could see price reach the higher point of control at 127.90.  We update our readers daily on these and other market developments (free registration here), but will be paying particular attention to this chart. (Source: Precision Capital Management)

Want our Feature Trade and more charts with trading recommendations? Click here to get a free copy of our October Premium Newsletter.

Want more Market Insights? Try these posts:

A Review of the Major Stock Indices Through the Lens of Auction Market Principles and the Market Profile Graph

Earnings Recap: Proctor and Gamble, Kellogg, and MetLife

SPYSPXDIATIVOStocksEconomic Policy