NEW BULLISH Plays

Bon-Ton Stores Inc. - BONT - close: 6.48 change: +0.15

Stop Loss: 5.90
Target(s): 7.50, 8.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
BONT fell almost -10% on Thursday as investors reacted to the company's August same-store sales decline of -4.7%. Analysts had been expecting a drop of -1.3%. In spite of the bad news traders were buying the dip on Friday near significant support at the $6.00 level.

BONT has bounced from support near $6.00 back in Sep. 2009 and August 2010. Now here it is again testing the same area. If the rebound continues then BONT could see a short squeeze. The most recent data listed short interest at almost 40% of the very, very small 10 million share float.

I am suggesting we launch small bullish positions now but only if BONT and the S&P500 index both open positive on Monday morning. If triggered we'll use a stop loss at $5.90. More aggressive traders may want to put their stop loss under the August 8th low of $5.59.

Our first target is $7.50. The second target is $8.25.

*Entry Details in Trade Description Above*

Suggested Position: buy BONT stock @ at the open

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 311 thousand
Listed on September 3, 2011


MAKO Surgical Corp. - MAKO - close: 36.90 change: +0.44

Stop Loss: 33.95
Target(s): 39.75, 44.00
Current Gain/Loss: unopened
Time Frame: 4 to 10 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
MAKO continues to show relative strength. The stock broke out past resistance near the $34 and $36 levels and hit new all-time highs this past week. On a short-term basis the rally has stalled under resistance near $38.00 but a breakout higher could spark another short squeeze. The most recent data listed short interest at more than 26% of the small 31.7 million-share float.

I am suggesting small bullish positions now but only if MAKO and the S&P500 index both open positive on Monday. More conservative traders may want to wait for another dip or a bounce near $34.00 or a close over $38.0 as their entry point instead. If our trade is opened on Tuesday we'll use a stop loss at $33.95. Our bullish targets are $39.75 and $44.00.

FYI: The Point & Figure chart for MAKO is bullish with a $54 target.

*Entry Details in Trade Description Above*

SMALL POSITIONS

Suggested Position: buy MAKO stock @ open

- or -

buy the OCT $40 call (MAKO1122J40) current ask $2.20

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on September 3, 2011


Research In Motion - RIMM - close: 30.13 change: -1.73

Stop Loss: 29.25
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: exit before Sep. 15th
New Positions: Yes, see below

Company Description

Why We Like It:
RIMM just had its price target raised from $25 to $37 by Bank of America on Friday but the market's widespread declines overpowered this positive news. I have listed RIMM as a stock to watch multiple times in recent days. This pull back toward $30.00 looks like an entry point. Previously the $30 level was resistance. Now it should be new support.

I am suggesting small bullish positions now but only if RIMM and the S&P 500 index both open positive on Tuesday morning. We'll use a stop loss at $29.25. Our first target is $34.75 (or the 100-dma).

NOTE: We do not want to hold over the Sep. 15th earnings report.

*Entry Details in Trade Description Above*

Suggested Position: buy RIMM stock @ open

- or -

buy the OCT $33 call (RIMM1122J33) current ask $2.00

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 09/15/11 (confirmed)
Average Daily Volume = 26.9 million
Listed on September 3, 2011


WABCO Holdings - WBC - close: 47.37 change: +1.29

Stop Loss: 44.45
Target(s): 51.00, 54.75
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Traders were buying the dip in WBC on Friday. Shares spiked down past $45.00 but quickly recovered and actually posted a +2.7% gain thanks in part to the company reaffirming its earnings guidance. WBC is due to hold a conference call to discuss "current business conditions" on September 8th. Cautious traders may want to wait until after the 8th before launching positions.

I am suggesting small bullish positions now but only if WBC and the S&P 500 index both open positive on Tuesday. We'll start with a stop loss at $44.45, just under Friday's low. Our targets are $51.00 and $54.75.

*See Entry Details in Play Description*

- Suggested Positions -

Suggested Position: buy WBC stock @ open

Annotated Chart:

Entry on September xx at $ xx.xx
Earnings Date 10/27/11 (unconfirmed)
Average Daily Volume = 900 thousand
Listed on September 3, 2011