NEW BULLISH Plays

Bio-Reference Labs - BRLI - close: 29.79 change: +0.22

Stop Loss: 28.75
Target(s): 34.75
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 2, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 232 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
BRLI provides clinical laboratory testing and other diagnostic screening and testing services. The stock could see a short squeeze. BRLI has rallied to significant resistance at the $30.00 mark and a breakout here could spark a new round of short covering. The most recent data listed short interest at 31% of the small 24.5 million share float.

The August 2012 high was $30.15. I am suggesting a trigger to open bullish positions at $30.25. Our target is $34.75. FYI: The Point & Figure chart for BRLI is bullish with a $49.50 target.

Trigger @ 30.25

Suggested Position: buy BRLI stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

J.C.Penney Co. - JCP - close: 23.56 change: -1.02

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: unopened

Entry on October 3 at $ xx.xx
Listed on October 2, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 8.9 million
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this department store chain have produced a dramatic reversal lower. The company's CEO held a webcast with investors and analysts on Sept. 19th. The stock initially rallied on his comments and JCP spiked past its 200-dma. Just as quickly the rally faded. The very next day JCP gapped open lower and plunged. Looks like investors have chosen to focus on the CEO's cautious comments. Since then JCP has tried to find support near $24-25. Now that support is failing.

I consider this a somewhat aggressive, higher-risk trade. We want to open small bearish positions at the opening bell tomorrow. Our target is $20.25. We'll start with a stop loss at $25.05.

*Small Positions*

Suggested Position: short JCP stock @ (the open)

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

buy the Oct $23 PUT (JCP1220v23) current ask $0.73

Annotated chart: