NEW BULLISH Plays

Buckle Inc. - BKE - close: 47.37 change: +1.14

Stop Loss: 45.40
Target(s): 52.50
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:
This is going to be a short-term trade. We only have a couple of weeks before BKE is scheduled to report earnings and we do not want to hold over the report. Shares have been building support in the $44-46 zone the last couple of weeks and just recently BKE is starting to break higher. Today saw a bullish move above technical resistance at its 50-dma.

I am suggesting we wait for a little bit more follow through and launch bullish positions if BKE can trade at $47.65. If triggered we'll use a stop loss at $45.40. I do see resistance at the $50.00 level but we're aiming for $52.50. FYI: The Point & Figure chart for BKE is bullish with a $72 target.

Trigger @ 47.65

Suggested Position: buy BKE stock @ (trigger)

- or -

buy the May $47.50 call (BKE1219E47.5) current ask $1.60

Annotated chart:

Weekly chart:

Entry on May xx at $ xx.xx
Earnings Date 05/17/12 (unconfirmed)
Average Daily Volume = 509 thousand
Listed on May 2, 2011


NEW BEARISH Plays

Greenhill & Co. - GHL - close: 38.05 change: -1.11

Stop Loss: 39.25
Target(s): 34.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
GHL is a financial stock that is underperforming the rest of its peers. Shares are currently consolidating in a bearish trend of lower highs and are about to break support near $38.00 and its April low of $37.40.

I am suggesting we launch small bearish positions if GHL hits $37.25 (or lower). Our target is $34.25. We do want to keep our position size small since being short GHL is a popular trade. The most recent data listed short interest at 18.5% of the small 26.8 million share float. That does raise the risk of a short squeeze.
FYI: The Point & Figure chart for GHL is bearish with a $29 target.

Trigger @ 37.25 (small positions)

Suggested Position: short GHL stock @ 37.25

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 07/18/12 (unconfirmed)
Average Daily Volume = 508 thousand
Listed on May 2, 2011