NEW BULLISH Plays

ACI Worldwide, Inc. - ACIW - close: 43.43 change: +0.82

Stop Loss: 41.25
Target(s): 49.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ACIW makes software for the electronic payments industry. Shares spent most of April and May in a sideways range. Early June saw a bear-trap pattern with a false breakdown then ACIW quickly reversed. The stock has spent the last few days consolidating sideways near resistance at its 2006 highs. Today marks a breakout to higher highs, past this level.

I am suggesting a trigger to launch bullish positions at $44.05. If triggered we'll use a stop loss at $41.25. Our target is $49.00.
FYI: The Point & Figure chart for ACIW is bullish with a $56 target.

Trigger @ 40.05

Suggested Position: buy ACIW stock @ (trigger)

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 07/26/12 (unconfirmed)
Average Daily Volume = 318 thousand
Listed on June 27, 2011


NEW BEARISH Plays

7 Days Group Holdings Ltd. - SVN - close: 10.10 change: -0.54

Stop Loss: 10.65
Target(s): 8.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SVN runs the 7-Days Inn hotel chain in China. Unfortunately for investors the stock seems to be in a terminal decline (check the weekly chart). The most recent oversold bounce off its June lows stalled and eventually reversed at resistance near $11.00 and its 50-dma. Now SVN is flirting with a breakdown under the $10.00 mark. A breakdown could signal a drop back toward its June lows ($8.33) or even back to the trend of lower lows.

I am suggesting a trigger to open small bearish positions at $9.95. If triggered we'll use a stop loss at $10.65, just above today's high. Our exit target is $8.50.

Trigger @ 9.95 *SMALL Positions*

Suggested Position: short SVN stock @ (trigger)

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 08/16/12 (unconfirmed)
Average Daily Volume = 88.7 thousand
Listed on June 27, 2011