NEW BULLISH Plays

Analog Devices - ADI - close: 41.68 change: +0.79

Stop Loss: 39.45
Target(s): 44.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.0 million
New Positions: Yes, see below

Company Description

Why We Like It:
ADI is in the semiconductor sector. The group has recovered from Intel's recent earnings warning. Shares of ADI are breaking out past major resistance near the $41.00 level. After two big days of gains we want to wait for a pullback.

I am suggesting we launch positions on a dip at $41.10 with a stop loss at $39.45. Our multi-week target is going to require some patience but we are aiming for $44.75. The Point & Figure chart for ADI is bullish with a $49 target.

Buy a Dip trigger @ 41.10

Suggested Position: buy ADI stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2013 Jan $42 call (ADI1319a42) current ask $1.90

Annotated chart:

Long-term chart:



Lions Gate Entertainment - LGF - close: 15.76 change: +0.18

Stop Loss: 14.75
Target(s): 17.75
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 15, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
LGF is a movie studio. The company also has some hit TV shows. The stock is quickly approaching its all-time high set in March of this year. I am suggesting we buy a dip at $15.25 with a stop loss at $14.75. If LGF does not dip then nimble traders can use a breakout past the $16.00 mark as their entry point. Our multi-week target is $17.75.

To clarify, the newsletter is only listing one entry point, a dip at $15.25, but if that doesn't work then our next plan is a breakout past $16.00.

Trigger @ 15.25

Suggested Position: buy LGF stock @ (trigger)

Annotated chart: