In addition to tonight's new candidate, consider these stocks as possible trading ideas:
MKC - the stock is hitting new all-time highs
CVE - breaking out past its 200-dma
MANH - this stock may have found a bottom at $40.00 but you might want to wait for a little pull back before considering new positions.
ASIA - a bounce near the $8.00 region could be a new entry point.
VECO - I would not want to chase today's move but the breakout is bullish. Keep an eye on it.
LXK - this stock has closed above resistance at the $35.00 level.
MRK - if you prefer a slower moving stock then MRK might be a buy on a breakout past $39.00.
AFL - this insurance stock has rallied past its 200-dma and it's about to breakout past resistance near $45.00.
DSW - a rise past $49.00 could be a new bullish entry point.
FEIC - I was tempted to buy FEIC tonight. The trend is higher.
NRGY - If you're looking for a bearish candidate then NRGY is underperforming the market and hitting new relative lows.
NEW BULLISH Plays
Human Genome Sciences - HGSI - close: 8.92 change: +0.40
Stop Loss: 8.30
Current Gain/Loss: unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
HGSI is a biotech stock that could see a short squeeze. The most recent data listed short interest at 20% of the 198 million share float. That is significant. Last week's breakout has already corrected somewhat and traders have been buying the dip near the $8.40 level. I see today's intraday bounce as a new bullish entry point.
I am suggesting bullish positions at the open tomorrow but only if both the S&P 500 and HGSI open positive. If the S&P 500 opens flat then we'll base our entry on HGSI's open. We'll use a stop loss at $8.30. Our target is $11.00 but readers should note that the $10.00 level and the simple 100-dma could act as overhead resistance. I am suggesting we keep our position size small to limit our risk.
See Entry Details Above (small positions)
Suggested Position: buy HGSI stock @ the open
- or -
buy the Feb $10 call (HGSI1218B10) current ask $0.60
Entry on January xx at $ xx.xx
Earnings Date 02/23/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on January 18, 2011