NEW BULLISH Plays

Mattress Firm - MFRM - close: 33.24 change: +0.32

Stop Loss: 32.40
Target(s): 39.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 405 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
MFRM could see a short squeeze. The most recent data listed short interest at 30% of the very, very small 9.0 million share float. MFRM is currently consolidating under resistance at $34.00.

I am suggesting a trigger to open bullish positions at $34.10. Our target is $39.50.

Trigger @ 34.10

Suggested Position: buy MFRM stock @ (trigger)

Annotated chart:



Toll Brothers - TOL - close: 35.10 change: +0.40

Stop Loss: 34.30
Target(s): 38.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 20, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
The homebuilders have been showing strength and TOL managed to buck the market's down trend on Friday. The stock is currently challenging resistance near $35.50. I am suggesting a trigger to launch bullish positions at $35.60. The $37 level could be resistance but we are aiming for $38.50.

Trigger @ 35.60

Suggested Position: buy TOL stock @ (trigger)

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

buy the 2013 Jan $38 call (TOL1319a38) current ask $1.30

Annotated chart: