Option Investor
New Plays

Aggressive Buys

HAVING TROUBLE PRINTING?
Printer friendly version

Play Editor's Note: I am adding some bullish positions tonight but I do so with a lot of hesitation. I'm worried that this might be a sucker's rally given the extremely low volume. Currently I think the best trade is probably just sitting out and waiting until next week to see what direction the market moves. If you can't wait then consider some aggressive, speculative plays like the ones listed tonight.


NEW BULLISH Plays

FISERV Inc. - FISV - close: 35.63 change: +1.08 stop: 33.95

Why We Like It:
The Monday-Tuesday bounce in FSIV from the $34.00 level looks like a new bullish entry point. If you look at an intraday chart you can see a narrow bull-flag pattern with Tuesday's rally as the breakout higher. The pull back toward $34.00 is also a 61.8% Fibonacci retracement. I am hesitant about adding new bullish plays but if the market is going to go up then FISV looks poised to move. Our first target is $37.50. Our second target is $39.50. FYI: The point & figure chart is bullish with a $50 target.

Annotated chart:
FISV

Picked on December 30 at $35.63 
Change since picked:     + 0.00   			
Earnings Date          02/04/09 (unconfirmed)    
Average Daily Volume:       1.6 million     


General Dynamics - GD - close: 56.41 change: +1.88 stop: 53.90

Why We Like It:
The DFI defense index is one of the strongest looking sectors in the market. The DFI has not broken its bullish trend of higher lows and the sector closed at new six-week highs above its 50-dma. GD is a defense stock and is showing a similar pattern. The bounce from $54.00 looks like a new entry point to buy the stock. Our first target is $59.90 since the $60.00 mark looks like round-number resistance. Be sure to take some profits here. We will set a secondary target at $63.00. FYI: The point & figure chart is bullish with a $74 target.

Annotated chart:
GD

Picked on December 30 at $56.41 
Change since picked:     + 0.00   			
Earnings Date          01/28/09 (unconfirmed)    
Average Daily Volume:       2.5 million     


Premier Investor New Play Archives