NEW BULLISH Plays

Energy XXI Ltd. - EXXI - close: 38.40 change: +1.37

Stop Loss: 36.45
Target(s): 42.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This oil and energy stock was showing relative strength today (+3.6%) after a four-day consolidation lower. EXXI is bouncing from prior resistance and what should be new support near its 2011 highs (April & May).

I am suggesting we launch small bullish positions in EXXI tomorrow morning but only if both this stock and the S&P 500 index open positive. If triggered we'll use a stop loss at $36.45. Our multi-week target is $42.50.
FYI: The Point & Figure chart for EXXI is bullish with a long-term $62 target.

Do not enter position unless EXXI and the S&P 500 are both positive at the open

(small positions)

Suggested Position: buy EXXI stock @ the open

- or -

buy the Mar $40 call (EXXI1217C40) current as $1.15

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 1.2 million
Listed on February 16, 2011


First Cashs Financial - FCFS - close: 43.77 change: +1.33

Stop Loss: 41.85
Target(s): 49.00
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Months ago investors were worried that new regulations being considered in Washington could have a negative impact on the payday loan industry. Those fears appear to have vanished. FCFS has been in rally mode this year. Shares continued to climb in spite of its lackluster earnings report in late January. The last couple of weeks FCFS has been digesting gains and consolidating with a slow drift lower. That changed today with a +3.1% gain and a breakout past its short-term trend of lower highs.

I am suggesting small bullish positions at the open tomorrow morning but only if both FCFS and the S&P 500 index open positive. We'll use a stop loss at $41.85. Our multi-week target is $49.00. FYI: Further gains could spark some short covering. The most recent data listed short interest at 6.4% of the small 27 million-share float. The Point & Figure chart for FCFS is bullish with a long-term $65.00 target.

Do not enter position unless FCFS and the S&P 500 are both positive at the open

Suggested Position: buy FCFS stock @ the open

- or -

buy the Mar $45 call (FCFS1217C45) current ask $1.35

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 04/18/12 (unconfirmed)
Average Daily Volume = 351 thousand
Listed on February 16, 2011