NEW BULLISH Plays

Fastenal Co - FAST - close: 38.09 change: -0.53

Stop Loss: 35.75
Target(s): 39.90
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FAST rallied to new all-time highs last week. Shares were overbought and now they've begun to correct lower. We want to be ready to buy the dip in this industrial goods (building materials) company.

Tonight we're suggesting a buy-the-dip entry point at $37.25 with a stop loss at $35.75. More conservative traders may want to wait for a dip into the $36.50-36.00 zone instead as their entry point. Our target is $39.90. FYI: The Point & Figure chart for FAST is bullish with a $50 target.

buy the dip Trigger @ $37.25

Suggested Position: buy the stock @ 37.25

- or -

buy the NOV $37.50 call (FAST1119K37.5) current ask $1.55

Annotated chart:

Entry on October xx at $ xx.xx
Earnings Date 01/18/12 (unconfirmed)
Average Daily Volume = 3.0 million
Listed on October 31, 2011


NetApp Inc. - NTAP - close: 40.96 change: -0.63

Stop Loss: 38.45
Target(s): 44.50
Current Gain/Loss: unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Last week NTAP saw a big breakout past resistance at $40.00. Now it looks like shares are headed for a retest. Broken resistance at $40 should be new support. We want to buy the dip at the $40.00 mark with a stop loss at $38.45. This is going to be a short-term trade. We do not want to hold over the November 16th earnings report. We'll set our target at $44.50 but we'll plan to exit ahead of earnings.

buy the dip Trigger @ $40.00

Suggested Position: buy NTAP stock @ 40.00

- or -

buy the NOV $40 call (NTAP1119K40) current ask $2.48

Annotated chart:

Entry on October xx at $ xx.xx
Earnings Date 11/16/11 (confirmed)
Average Daily Volume = 6.8 million
Listed on October 31, 2011