NEW BULLISH Plays

Pegasystems Inc. - PEGA - close: 20.79 change: +0.52

Stop Loss: 19.90
Target(s): 24.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 257 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
PEGA is a software company. The stock has been plunging the last three quarters. Yet after a drop from $40 to $19 it looks like PEGA may have finally found a bottom. The stock has spent the last three weeks building a base and traders just bought the dip again today.

Aggressive traders may want to open bullish positions now. I am suggesting a trigger to launch positions at $21.25. If triggered our target is $24.00 although more conservative traders may want to exit as PEGA nears potential resistance at its simple 50-dma instead.

Trigger @ 21.25

Suggested Position: buy PEGA stock @ (trigger)

Annotated chart:



Tenneco Inc. - TEN - close: 32.56 change: +0.76

Stop Loss: 31.45
Target(s): 37.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 04, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 517 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TEN is in the auto parts industry. The stock has rallied back to resistance near its September highs. It's also nearing a major trend line of lower highs dating back to 2011. A breakout past this trend line could spark the next big leg higher.

I am suggesting we keep our position size small to limit our risk. We will use a trigger to open bullish positions at $33.15. More conservative traders may want to wait for TEN to actually close above the $33.00 level and then open positions the next morning. If triggered our multi-week target is $37.00. This trade could take weeks.

Trigger @ 33.15 *Small positions*

Suggested Position: buy TEN stock @ (trigger)

Annotated chart: