NEW BULLISH Plays

Teva Pharma - TEVA - close: 45.51 change: +0.16

Stop Loss: 44.45
Target(s): 49.50
Current Gain/Loss: unopened
Time Frame: exit prior to the mid May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this drug maker are slowly building on a bullish trend of higher lows. If the stock can breakout past resistance near $46.00 it should be an entry point. I am suggesting a trigger at $46.25 to launch positions. We'll use a stop loss at $44.45 to start. Our target is $49.50 but we will probably exit early to avoid the mid-May earnings report.

Trigger @ $46.25

Suggested Position: buy TEVA stock @ (trigger)

- or -

buy the May $45 call (TEVA1219E45) current ask $1.46

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 3.3 million
Listed on April 25, 2011


NEW BEARISH Plays

Quality Systems - QSII - close: 38.45 change: +0.86

Stop Loss: 40.25
Target(s): 34.50
Current Gain/Loss: unopened
Time Frame: exit prior to the late May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
On Monday QSII broke down from a two-week consolidation sideways. Shares had been trading with a bearish trend of lower highs. Now the stock appears to be in another leg lower. Traders were selling the bounce this morning.

I am suggesting we launch bearish positions at the open tomorrow. We'll start with a stop loss at $40.25 since the $40.00 level should be resistance. I do see potential support at $36.00 and $34.00 and we are going to set our exit target at $34.50 but we plan to exit prior to the late May earnings report. Readers may want to use small positions. The most recent data listed short interest at 12% of the relatively small 39.4 million share float so that does raise the risk of a possible short squeeze.

open positions tomorrow morning

Suggested Position: short QSII stock @ (the open)

- or -

buy the May $40 PUT (QSII1219Q40) current ask $2.15

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/24/12 (unconfirmed)
Average Daily Volume = 476 thousand
Listed on April 25, 2011