NEW BULLISH Plays

Market Leader, Inc. - LEDR - close: 4.25 change: +0.15

Stop Loss: 3.77
Target(s): 6.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LEDR is an online tech firm catering to real estate agents. The stock has been showing relative strength since the first of February. Now after years of wallowing in the $1.50-4.00 range the stock is finally breaking out. It's already retested broken resistance at $4.00 as new support.

Normally we would avoid a stock with low daily volume like this one but we're tempted to launch positions anyway given its strength. We'll try and limit our risk by keeping our position size small.

We will start this trade with a trigger to open bullish positions at $4.35. However, nimble traders may want to try and buy a dip near $4.00 instead. We're going to try and be agile ourselves and adjust our entry point depending on how LEDR performs. We'll use a stop loss at $3.77, just under the 50-dma. Conservative traders could use a stop closer to $4.00 instead.
FYI: The Point & Figure chart for LEDR is bullish with a $6.75 target.

Remember, small positions. Don't go overboard just because the share price is low. I would consider this a higher-risk trade.

Trigger @ 4.35

Suggested Position: buy LEDR stock @ (trigger)

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 05/01/12
Average Daily Volume = 77 thousand
Listed on May 19, 2011


AT&T, Inc. - T - close: 33.66 change: +0.37

Stop Loss: 32.90
Target(s): 36.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Big cap telecom stocks like T and VZ have been outperforming the market. Shares of T did it again on Friday with a +1.1% gain. The stock is trading near multi-year highs set just a few days ago. We want to hop on board this relative strength.

I am suggesting a trigger at $34.05 to launch bullish positions. We'll use a stop at $32.90. FYI: The Point & Figure chart for T is bullish with a long-term $54.50 target.

Trigger @ 34.05

Suggested Position: buy T stock @ (trigger)

- or -

buy the Jun $33 call (T1216F33) current ask $1.08

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 28 million
Listed on May 19, 2011