NEW BULLISH Plays

EMC Corp. - EMC - close: 28.15 change: -0.17

Stop Loss: 26.45
Target(s): 29.95, 32.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Strong earnings from EMC helped power the stock to new multi-year highs last week. Now shares are digesting those gains. Aggressive traders will want to seriously consider initiating new bullish positions now. Personally, I would prefer to wait for a dip back toward prior resistance and what should be new support near $27.50. I am suggesting a trigger to initiate positions at $27.55. If triggered our targets are $29.95 and $32.25.

FYI: The Point & Figure chart for EMC is bullish with a $34.50 target.

Buy-the-dip Trigger @ $27.55

Suggested Position: buy EMC stock @ $27.55

- or -

Buy the June $27.00 calls (EMC1118F27)

Annotated chart:

Entry on April x at $xx.xx
Earnings Date 04/20/11
Average Daily Volume: 21.4 million
Listed on April 27th, 2011


Target Corp. - TGT - close: 50.59 change: +0.74

Stop Loss: 49.40
Target(s): 53.75, 55.90
Current Gain/Loss: unopened
Time Frame: about 3 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Target has been underperforming the market and its peers in the retail sector for weeks now. Fortunately for shareholders it looks like TGT may have found a bottom. The stock has been consolidating sideways in the $49-51 level for the last few weeks. A breakout past the April high could spark some short covering and some bargain hunting. Granted this is short-term trade. The 50-dma's decline below its 200-dma is a long-term bearish signal. and TGT could have major resistance at its 200-dma and the $54 level overhead.

I am suggesting we open bullish positions at $51.25 but we want to keep our position size small. If shares fail to hit our target we'll plan on exiting ahead of the May 18th earnings report to avoid holding over the report. Our targets are $53.75 and $55.90.

Trigger @ $51.25 (Small Positions)

Suggested Position: buy TGT stock @ 51.25

- or -

Buy the May $52.50 calls (TGT1121E52.5)

Annotated chart:

Entry on April x at $xx.xx
Earnings Date 05/18/11 (confirmed)
Average Daily Volume: 6.3 million
Listed on April 27th, 2011