NEW BULLISH Plays

AGCO Corp. - AGCO - close: 47.48 change: +0.56

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 29, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
AGCO makes farm and agricultural equipment. The current bounce looks like a bullish breakout from its recent sideways consolidation. We want to see a little more confirmation. I am suggesting a trigger to open bullish positions at $48.15. We'll start with a stop loss at $45.95. Our target is $52.50.

Trigger @ 48.15

Suggested Position: buy AGCO stock @ (trigger)

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

buy NOV $50 call (AGCO1211k50) current ask $1.20

Annotated chart:



Colfax Corp. - CFX - close: 36.67 change: +0.54

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 29, 2011
Time Frame: 4 to 8 weeks
Average Daily Volume = 753 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CFX is in the industrial goods sector. The stock's rally off its July lows is still going. Traders bought the dip on Wednesday and now CFX is testing its all-time highs set earlier in September.

I am suggesting a trigger to open bullish positions at $37.00. We will aim for $39.90. The $40.00 level might be round-number resistance. I would keep our position size small to limit our risk.
FYI: The Point & Figure chart for CFX is bullish with a long-term $59 target.

Trigger @ 37.00 *Small Positions*

Suggested Position: buy CFX stock @ (trigger)

Annotated chart: