NEW BULLISH Plays

Akamai Technologies - AKAM - close: 36.84 change: +0.72

Stop Loss: 34.65
Target(s): 39.75 & 41.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AKAM produced a big gap higher following its better than expected earnings report in early February. Shares have since slowly consolidated lower until it finally filled the gap. Now AKAM is moving higher again. The last couple of days have seen AKAM break through the short-term bearish trend of lower highs.

I am suggesting we open bullish positions on Monday morning if both the S&P 500 and AKAM open positive. However, if the S&P 500 does not open positive but AKAM does then we'll use a trigger at $37.60 as our entry point instead. I am setting two targets, one at $39.75 and another at $41.50. FYI: The Point & Figure chart for AKAM is bullish with a long-term $66.00 target.

Do not enter position unless AKAM and the S&P 500 are both positive at the open - or - use a trigger at $37.60 if the S&P 500 opens lower

Suggested Position: buy AKAM stock @ (see above)

- or -

buy the Apr $36 call (AKAM1217D36) current ask $2.12

- or -

buy the May $40 call (AKAM1219E40) current ask $1.51

Annotated chart:

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 2.9 million
Listed on March 10, 2011


eBay Inc. - EBAY - close: 36.25 change: +0.47

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The last few weeks have been very bullish for EBAY. The stock broke out from a huge, year-long $27-35 trading range. The recent pullback was a clean retest of prior resistance as new support. You could argue the recent consolidation looks like a bull-flag pattern.

I am suggesting new bullish positions at the open on Monday but only if both EBAY and the S&P 500 index open positive. We'll use a stop loss at $34.75. Our multi-week target is $39.50. The Point & Figure chart for EBAY is bullish with a $46.00 target.

FYI: After the closing bell on Friday it was announced that EBAY will be added to the S&P 100 index after the close on March 16th. For those funds that track the S&P 100 they'll have to start buying EBAY, which should help the up trend. This news could also produce a gap higher on EBAY come Monday morning.

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

Suggested Position: buy EBAY stock @ (the open)

- or -

buy the Apr $35 call (EBAY1221D35) current ask $2.15

Annotated chart:

Weekly chart:

Entry on March xx at $ xx.xx
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 10.6 million
Listed on March 10, 2011