NEW BULLISH Plays

iShares Russell 2000 ETF - IWM - close: 71.39 change: -2.62

Stop Loss: 67.49
ETF target: 75.75
November Call Target: 73.75
January Call Target: 75.75
Current Gain/Loss: unopened
Time Frame: 2 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The small caps experienced a huge bounce off their October lows (+25%) and they were due for some profit taking. Shares of the IWM have paused near support after a -6.5% correction. I suspect that the IWM will test its 50-dma before bouncing.

We are suggesting small bullish positions on a dip at $69.50 with a stop loss at $67.45, which is under the mid October lows. Readers can buy the ETF of you can buy the call options.

Trigger @ 69.50 (small positions)

Suggested Position: buy the IWM @ 69.50
Target: 75.75

- or -

buy the NOV $72 call (IWM1119K72)
Target: 73.75

- or -

buy the JAN $73 call (IWM1221A73)
Target: 75.75

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 84 million
Listed on November 1, 2011


Copper ETN - close: 45.35 change: -1.55

Stop Loss: 41.90
Target(s): 48.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Copper prices experienced a huge bounce in October. The metal was due for some profit taking. Prior resistance near $44.00 should offer new support. I am suggesting we buy a dip. This is a bullish bet that the U.S. and China will continue to see improving economic data. What could hamper this trade is a real breakdown in Europe since a hard default by Greece would damage Europe's economy.

We want to keep our position size small. The JJC tends to gap open every morning, which raises our risk. I am suggesting a trigger to open bullish positions at $44.35 with a stop loss at $41.90. More conservative traders might want to consider a tighter stop loss. Our target is $48.00 although more aggressive traders may want to aim for $50.00 instead.

buy the dip Trigger @ 44.35

Suggested Position: buy the JJC @ 44.35

- or -

buy the NOV $45 call (JJC1119K45)

- or -

buy the JAN $47 call (JJC1221A47)

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 438 thousand
Listed on November 1, 2011