NEW BULLISH Plays

Nanometrics Inc. - NANO - close: 16.79 change: -0.02

Stop Loss: 15.85
Target(s): 19.25, 22.00
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks or more
New Positions: Yes, see below

Company Description

Why We Like It:
NANO is a technology stock that is bucking the trend. It's amazing to think that NANO was trading under $2.00 back in early 2009. On the weekly chart you can see that NANO is building a bullish trend of higher highs and higher lows. You can also see that NANO is breaking out from a three-month consolidation phase. In the last few weeks NANO has bounced from support near $15.00 and near its 200-dma. Just this past week S&P announced they were adding NANO to the small cap 600 index.

This stock bounce support and rallied off its intraday lows near $16.00 on Friday. I'm suggesting we buy this bounce with a stop loss at $15.85. More aggressive traders may want to place their stop under $15.50 or even the $15.00 level, since both should offer some support. I'd rather keep our stop tight and if we get stopped out at $15.85 we can try again and buy a dip or bounce near $15.00.

We'll start with multi-week targets at $19.25 and $22.00. FYI: NANO does have options but the spreads are so wide I wouldn't trade them.

Current Position: buy NANO stock @ current levels

Annotated chart:

Weekly chart:

Entry on June 13 at $xx.xx
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume: 467 thousand
Listed on June 11th, 2011


NEW BEARISH Plays

Kohl's Corp. - KSS - close: 49.76 change: -0.93

Stop Loss: 51.75
Target(s): 47.50, 45.25
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I'm cautious on launching new bearish positions with the stock market down six weeks in a row. The intermediate trend is down but eventually stocks will see a multi-day oversold bounce. Readers may want to wait on launching new positions but technically KSS is breaking down. Shares just spent several days consolidating between $50 and resistance at $51.50. Friday's breakdown looks like a new entry point. I'm suggesting new positions now with a stop at $51.75. Let's keep our position size small to limit our risk. FYI: The Point & Figure chart for KSS is bearish with a $43 target.

- Small Positions-

Suggested Position: short KSS stock @ current levels

- or -

buy the July $47.50 put (KSS1116S47.5) current ask $0.75

Annotated chart:

Weekly chart:

Entry on June 13 at $xx.xx
Earnings Date 08/11/11 (unconfirmed)
Average Daily Volume: 4.1 million
Listed on June 11th, 2011