NEW BULLISH Plays

Trex Co. Inc. - TREX - close: 34.90 change: +0.68

Stop Loss: 33.85
Target(s): 39.00
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 6, 2012
Time Frame: exit prior to the late October earnings report
Average Daily Volume = 251 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TREX makes wood and plastic-composite decking materials. The stock has rallied to multi-year highs. TREX has spent the last several days consolidating under major resistance near $35.00.

I am suggesting a trigger to open bullish positions at $35.15. If triggered we'll use a stop loss at $33.85. Our target is $39.00.

Trigger @ 35.15

Suggested Position: buy TREX stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Veeco Instruments - VECO - close: 29.90 change: -0.69

Stop Loss: 31.05
Target(s): 26.25
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 6, 2012
Time Frame: exit prior to the Oct 22nd earnings report
Average Daily Volume = 740 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this tech company have been struggling. The stock produced a bearish double top with the peaks in August and September. Then shares bombed after Goldman Sachs downgraded the stock a couple of weeks ago. Now after a week of consolidating between support near $30 and resistance at its simple 200-dma VECO looks poised to breakdown even further.

A lot of investors are already bearish on this stock so there is a risk of a short squeeze should it unexpectedly move higher. The most recent data listed short interest at 29% of the 38.7 million share float. Thus you may want to use put options to limit your risk instead of shorting the stock.

I am suggesting a trigger to open bearish positions at $29.75. Our target is $26.25. More aggressive traders could definitely aim lower.

Trigger @ 29.75

Suggested Position: short VECO stock @ (trigger)

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

buy the Nov $30 PUT (VECO1211w30) current ask $2.15

Annotated chart: