NEW BULLISH Plays

Gildan Activewear - GIL - close: 31.98 change: +0.33

Stop Loss: 29.45
Target(s): 34.85, 38.00
Current Gain/Loss: Unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
GIL has spent the last eight months consolidating sideways and building a new base. Shares are currently poised to breakout past resistance in the $32-33 zone. Aggressive traders may want to buy GIL now. I suspect we might get another chance to buy a dip so I'm suggesting a trigger to enter bullish positions at $31.00. We'll start the play with a stop loss at $29.45. Our targets are $34.85 and $38.00 but that might be a little too optimistic. Nimble traders may want to be on alert to buy a breakout past the June 2010 high of $32.73.
FYI: The Point & Figure chart for GIL is bullish with a $39.50 target.

Trigger @ 31.00

Suggested Position: buy GIL stock @ 31.00

- or -

Buy the April $30 call (GIL1116D30) current ask $2.75

Annotated chart:

Entry on March x at $xx.xx
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 634 thousand
Listed on February 28th, 2010


Sony Corp. - SNE - close: 36.84 change: +0.36

Stop Loss: 34.80
Target(s): 39.90, 43.50
Current Gain/Loss: + 0.0%
Time Frame: 8 to 10 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SNE appears to be breaking out from a three-month consolidation. Given enough time SNE could make a run at the $40 and $45 levels, especially if the parade of economic data continues to show strength both here in the U.S. and abroad. My biggest concern with SNE would be further strength in the yen, which makes Japanese exports more expensive overseas.

I am suggesting bullish positions now. However, you could choose to wait for a dip near $36 and the 50-dma or wait for a stronger breakout past $37.00. Traders should expect SNE to gap open up or down each morning as shares adjust to trading back home in Japan.

FYI: The Point & Figure chart for SNE is bullish with a $53 target.

Suggested Position: Buy SNE stock @ current levels

- or -

Buy the April $38 calls (SNE1116D38) current ask $0.85

Annotated chart:

Entry on March 1 at $xx.xx
Earnings Date 05/12/11 (unconfirmed)
Average Daily Volume: 862 thousand
Listed on February 28th, 2010