NEW BULLISH Plays

McMoRan Exploration - MMR - close: 13.00 change: +0.49

Stop Loss: 11.90
Target(s): 15.00-16.00 zone
Current Gain/Loss: unopened

Entry on November 12 at $ xx.xx
Listed on November 10, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
MMR is an oil and gas driller in the Gulf of Mexico. Shares could see a short squeeze now that the stock may have found a bottom. The most recent data listed short interest at almost 20% of the float. MMR's recent show of relative strength probably has bears running scared.

I am suggesting small bullish positions at the opening bell on Monday. Patient traders may want to wait and see if MMR provides a pull back toward $12.50 as a better entry point instead. This could be a longer-term trade for us. We area aiming for the $15-16 zone.

Suggested Position: buy MMR stock @ (the open on Monday)

Annotated chart:



Taiwan Semiconductor - TSM - close: 16.36 chagne: +0.23

Stop Loss: 15.25
Target(s): 18.50
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on November 10, 2012
Time Frame: 6 to 9 weeks
Average Daily Volume = 10.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
TSM is a semiconductor stock that has been ignoring weakness in both the market's major indices and the semiconductor sector. That may be due to the company's positive earnings report and management's bullish guidance going forward. Now the stock is breaking out to new multi-year highs.

I am suggesting we wait and open bullish positions on a dip at $16.05. We'll start with a stop loss at $15.25, just under the 50-dma. Our multi-week target is $18.50.

buy-a-dip trigger @ 16.05

Suggested Position: buy TSM stock @ (trigger)

Annotated chart: