3 dogs due to have their day

• Buy 800 shares of Boyd Gaming (BYD, news, msgs) at the open. Place an order to sell at 16.50 or above.

• Buy 400 shares of JP Morgan Chase (JPM, news, msgs) at the open. Place an order to sell at 41.50 or above.

• Buy 400 shares of P.F. Chang's China Bistro (PFCB, news, msgs) at the open. Place an order to sell at 28.50 or above.

Strategy Lab is MSN Money's stock-picking challenge. To learn more about the game and the contenders, click here.

Despite all of the blather about getting tough on inflation, the Fed left rates unchanged yesterday. This should surprise nobody, as the Fed is in a very difficult spot.

Higher energy and food prices are putting considerable upward pressure on inflation, while at the same time most data show the economy losing steam. So even though the Fed could probably raise rates by 50 basis points – a half-percent -- without providing much drag on the economy, the very action itself could prove unsettling to investors. It would do nothing to actually curb inflation and would send a signal that the current economic woes are far from over.

Basically, until investors get better clarity on oil prices, economic weakness, consumer spending, the election and the depth of the credit crisis, it will be very difficult for the market to sustain any upward momentum.

Consequently, investors need to bolster their cash holdings and ride out the tide -- or be very selective in the stocks they acquire. If you have the luxury of time, now is a pretty decent time to start adding some beaten-up retail, banking, restaurant and gaming stocks.

However, we're down to the last month or so of the current Strategy Lab round, so time is not a friend here. Nevertheless, this is a decent short-term buying opportunity, with the stock indexes trading near their recent lows. So I'll take a stab at making some quick money on three different beaten-up dogs.

Gaming, financials and Chinese food

First, let's add 800 shares of Boyd Gaming (BYD, news, msgs) at Thursday's open. Casino stocks have taken a huge hit amid fears that the deepening recession would keep folks from gambling. Recent evidence suggests there is some merit to those concerns, as occupancy rates are down along with revenues. But with the stock now trading at a mere 10 times estimated earnings, Boyd is an attractive turnaround/takeover candidate. So I'll place my chips on the table and play the long-side. Sell all at 16.50 or better.

I'll also add 400 shares of JP Morgan Chase (JPM, news, msgs) at Thursday's open. The stock is bouncing off its 52-week low after taking a bath in recent weeks and is trading at attractive relative valuations. JP Morgan is also one of the best-run banking companies, as evidenced by its approach over the past few years and by its decision to swoop in and buy Bear Stearns (BSC, news, msgs) on the cheap. Sell all shares at 41.50 or better.

Finally, let's gobble up 400 shares of P.F. Chang's China Bistro (PFCB, news, msgs) at the open. This once-highflying restaurant chain is a current favorite of short sellers -- and why not, given that it has fallen 34% over the past year. However, if the company can deliver any good news -- even results that merely beat depressed earnings estimates -- the shorts will be forced to cover generating a nice short-term pop to the upside. Sell all shares at 28.50 or better.

Now, if the market bounces in the next week or so, we should be in better position to ride the wave. I'll add a couple more positions in the days to come.