NEW BULLISH Plays

Centene Corp. - CNC - close: 40.67 change: +1.58

Stop Loss: 38.75
Target(s): 44.75
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 15, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
Healthcare stocks were showing relative strength today with the HMO index up +1.8%. CNC was outperforming its peers with a +4.0% gain. Today's move is also a bullish breakout past resistance near $40.00, near its 200-dma and near its 150-dma.

I want to see a little bit more confirmation. I am suggesting a trigger to launch bullish positions at $40.85 with a stop loss at $38.75. Our multi-week target is $44.75. More aggressive traders could aim higher.

Trigger @ 40.85

Suggested Position: buy CNC stock @ (trigger)

- or -

buy the Sep $42.50 call (CNC1222i42.5) current ask $1.85

Annotated chart:



Deckers Outdoor - DECK - close: 46.20 change: +1.45

Stop Loss: 44.49
Target(s): 49.90
Current Gain/Loss: unopened

Entry on August xx at $ xx.xx
Listed on August 15, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 2.0 million
New Positions: Yes, see below

Company Description

Why We Like It:
Has DECK finally found a bottom after months of declines? Shares have been stuck under a trend of lower highs and under its simple 50-dma for most of 2012. The stock appears to have found support at the $40.00 level a couple of weeks ago. Now DECK is chewing through resistance near $45 and its 50-dma. Today's gain (+3.2%) and its close over technical resistance could spark a short squeeze in this stock. The most recent data listed short interest at 27% of the relatively small 33.4 million share float.

Today's high was $46.49. I am suggesting a trigger to launch bullish positions at $46.60. Our target is $49.90. More aggressive traders could definitely aim higher.

Trigger @ 46.60

Suggested Position: buy DECK @ (trigger)

- or -

buy the Sep $47.50 call (DECK1222i47.5) current ask $2.20

Annotated chart: