NEW BULLISH Plays

Gold Fields Ltd - GFI - close 13.28 change +0.23 stop 12.25

Company Description:
Gold Fields Limited (Gold Fields) is a producer of gold and holder of gold reserves in South Africa, Ghana, Australia and Peru. In Peru, Gold Fields also produces copper. Gold Fields is primarily involved in underground and surface gold and copper mining and related activities, including exploration, extraction, processing and smelting. Gold Fields also has an interest in a platinum group metal exploration project. The majority of Gold Fields’ operations, based on gold production, are located in South Africa. Its South African operations are Driefontein, Kloof, Beatrix and South Deep. Gold Fields also owns the St. Ives and Agnew gold mining operations in Australia and has a 71.1% interest in each of the Tarkwa gold mine and the Damang gold mine in Ghana. (source: company press release or website)

Why We Like It:
Gold Miners and gold appear to be ready to make another leg higher and I suggest readers take advantage of the momentum that is building. The FOMC is keeping interest rates low and this is stoking fears of inflation, or inflationary bubbles, and I believe traders are beginning to pour into gold mining stocks once again. GFI has been trading in an upward channel since late February and appears ready to break out of resistance at $13.36. I believe the stock will quickly trade to the $13.95 over the next week. GFI reports earnings on May 6th so I plan to be out of this trade on that date. We'll place a stop below the 50-day SMA at $12.25 and our target is $13.95 which is just below the YTD highs. Our time frame is about one week or shorter. *NOTE: Please use small position size to limit risk as gold stocks tend to be volatile.*

Suggested Position: Long GFI stock at $13.25

Option Traders:
Suggested Position: Buy MAY $13.00 CALL, current ask $0.60

Annotated chart:

Entry on April xx at $xx.xx
Earnings Date May 6, 2010 (unconfirmed)
Average Daily Volume: 5.3 million
Listed on April 26, 2010


Corning, Inc - GLW - close 20.07 change -0.05 stop 18.80

Company Description:
Corning Incorporated (Corning)is a technology-based corporation that operates in five reportable business segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials and Life Sciences. Corning manufactures and processes products at approximately 60 plants in 13 countries. Its subsidiaries include Corning Cable Systems LLC, Corning Cable Systems Polska Sp. Z o.o, Axygen BioScience, Inc and Corsam Technologies LLC. In September 2009, Corning acquired Axygen BioScience, Inc. (source: company press release or website)

Why We Like It:
GLW reported earnings today that beat expectations by 10-cents and once again raised its forecast for LCD glass demand. The stock has been punished over the last couple of days and I suggest readers take advantage of the dip. I suggest readers enter the stock at current levels and I expect a move to $21.70 in short order, which is near the bottom of a congestion area in 2007. The stock has been in an upward channel since November 2008 and I don't foresee this being compromised. The stock has support on its daily chart all the way down to its 50-day SMA and 20-week SMA near $19.00, but I don't expect much more selling. If the trade works we will be looking at a gain of +8.5%. Our stop will be $18.80 and our time frame is several weeks.

Suggested Position: Long GLW stock at current levels

Option Traders:
Suggested Position: Buy JUNE $20.00 CALL, current ask $0.96

Annotated weekly chart:

Entry on April xx at $xx.xx
Earnings Date Over two months
Average Daily Volume: 14 million
Listed on April 26, 2010