NEW BULLISH Plays

Ball Corp. - BLL - close: 43.38 change: -0.05

Stop Loss: 42.40
Target(s): 48.00
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 687 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
BLL is an interesting mix of businesses. One is involved in metal packaging (cans) for food, drink, and household products. Another is in the aerospace industry. The stock has been consolidating under major resistance near $43.50 for months but you'll notice on the chart it has a bullish pattern of higher lows. This trend would suggest that BLL is near a breakout higher.

I am suggesting we use a trigger to launch bullish positions at $43.85. More conservative trades may want to wait for BLL to cross $44.00 instead. Our multi-week target is $48.00.

Trigger @ 43.85

Suggested Position: buy BLL stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Netgear Inc. - NTGR - close: 34.98 change: -1.47

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 381 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NTGR makes networking equipment. The company recently reported earnings and management lowered their earnings guidance. This news helped push NTGR through support. Now the oversold bounce is failing at resistance and NTGR looks ready to begin a new leg lower.

The October 26th low was $34.60. I am suggesting a trigger to open bearish positions at $34.50. Our target is $30.25.

Trigger @ 34.50

Suggested Position: short NTGR stock @ (trigger)

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

buy the DEC $33 PUT (NTGR1222x33) current ask $1.15

Annotated chart:



Tronox Inc. - TROX - close: 20.22 change: -0.32

Stop Loss: 20.75
Target(s): 18.05
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 3, 2012
Time Frame: exit on Nov. 9th to avoid the earnings report
Average Daily Volume = 838 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TROX is involved in the production of titanium ore and titanium oxide. Many of the basic material stocks have been underperforming the market. Shares of TROX is no exception with a bearish trend of lower highs. The stock is hovering above major support at the $20.00 level. A breakdown here could produce a sharp and fast drop lower.

This is going to be a short-term trade. TROX is due to report earnings on November 12th and we do not want to hold over the report (more aggressive traders may want to reconsider and hold over the announcement). If our trade is still open, we'll plan to exit on Nov. 9th at the closing bell.

Right now I am suggesting a trigger at $19.75 to open small bearish positions. Our target is $18.05. More aggressive traders could aim lower. FYI: The Point & Figure chart for TROX is bearish with a $12.00 target.

Trigger @ 19.75 *Small Positions*

Suggested Position: short TROX stock @ (trigger)

Annotated chart: