NEW BULLISH Plays

Bank of America - BAC - close: 9.94

Stop Loss: 9.65
Target(s): 11.25
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 6, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
BAC, a major bank, has been showing relative strength versus the market. Shares had been consolidating in a bullish wedge-shaped pattern for weeks. There was a false breakout lower that quickly reversed. Now BAC is hitting new multi-month highs and is testing major resistance near the $10.00 level.

The March 2012 high was $10.10. I am suggesting a trigger to open bullish positions at $10.15. If triggered our target is $11.25 over the next several weeks. FYI: The Point & Figure chart for BAC is bullish with a long-term $20.50 target.

Trigger @ 10.15

Suggested Position: buy BAC stock @ (trigger)

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

buy the 2013 Jan $10 call (BAC1319a10) current ask $0.60

Annotated chart:



NEW BEARISH Plays

Crocs, Inc. - CROX - close: 12.63 change: -0.48

Stop Loss: 13.05
Target(s): 10.25
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 6, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
The oversold bounce in CROX is failing. Shares look poised to begin a new leg lower. The stock was crushed back in October on its earnings report. CROX reported earnings of 49 cents a share. That was six cents better than expected yet revenues were a miss. Then management followed that news up with lowered guidance for the fourth quarter. Shares of CROX reacted by gapping down and plunging from $16 to under $13.

Today the stock reversed sharply and the oversold bounce appears to have run out of steam. I am suggesting a trigger to open small bearish positions at $12.40. If triggered our target is $10.25.

Trigger @ 12.40

Suggested Position: short CROX stock @ (trigger)

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

buy the Dec $12 PUT (CROX1222x12) current ask $0.50

Annotated chart: