NEW BULLISH Plays

Polypore Intl. - PPO - close: 40.96 change: +1.33

Stop Loss: 39.20
Target(s): 46.00
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 15, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 389 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
PPO is in the industrial goods sector. The company develops filtration technology. Shares saw a correction following the late November rally. Now PPO is beginning to rebound again. After almost two weeks of consolidating sideways PPO looks ready to resume its prior up trend. If the rally continues PPO could benefit from short covering. The most recent data listed short interest at 33% of the 42.8 million share float.

Wednesday's high was $41.39. I am suggesting a trigger to open bullish positions at $41.50. Our target is the $46.00 level. FYI: The Point & Figure chart for PPO is bullish with a $47.00 target.

Trigger @ 41.50

Suggested Position: buy PPO stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Telephone & Data Systems - TDS - close: 22.11 change: -0.19

Stop Loss: 22.55
Target(s): 20.15
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 15, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 561 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TDS provides wireless, telephone and broadband services to about seven million customers across the nation. Unfortunately the company's earnings have not been very consistent and TDS announced a significant miss in early November, which sparked the big sell-off on the chart. Since then TDS has been consolidating sideways above support near $22.00 albeit with a bearish trend of lower highs. If TDS breaks support at $22.00 it's probably headed for the next support level in the $20-19 zone.

I am suggesting a trigger to launch bearish positions at $21.90. Our target is $20.15. FYI: The Point & Figure chart for TDS is bearish with a long-term $9.00 target.

Trigger @ 21.90

Suggested Position: short TDS stock @ (trigger)

Annotated chart: