NEW BULLISH Plays

Ford Motor Co. - F - close: 14.67 change: +0.37

Stop Loss: 14.19
Target(s): 16.45, 17.45
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
What has happened to Japan with the combination of earthquake and tsunami is terrible beyond words. Parts of the country are offline and without power. That is going to put companies like Toyota (TM) at a disadvantage. American companies like Ford (F) could actually benefit from this natural disaster.

Shares of Ford saw a huge bounce off its lows today and the stock has produced a bullish engulfing (reversal) candlestick pattern. Normally these patterns need to see confirmation. I am suggesting we wait for a move past $15.00. I'm listing a trigger to buy Ford at $15.05. Should we get triggered we'll use a stop at $14.19. Our targets are $16.45 and $17.45.

Trigger @ $15.05

Suggested Position: Buy F stock @ $15.05

- or -

Buy the April $15 calls (F1116D15) current ask $0.50

Annotated chart:

Entry on March x at $xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume: 82 million
Listed on March 15th, 2010


Weyerhaeuser Co. - WY - close: 24.70 change: -0.09

Stop Loss: 22.95
Target(s): 27.25, 29.25
Current Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
WY has been showing relative strength the last couple of days. Traders bought the dip at its rising 50-dma last week and now WY is poised for more gains. I am suggesting we open small bullish positions now with a stop loss at $22.95, just under technical support at the 50-dma. Our targets are $27.25 and $29.25.

- open small positions now -

Suggested Position: buy WY stock @ current levels

- or -

Buy the July $25 calls (WY1116G25) current ask $1.90

Annotated chart:

Entry on March 16 at $xx.xx
Earnings Date 04/29/11 (unconfirmed)
Average Daily Volume: 6.4 million
Listed on March 15th, 2010