NEW BULLISH Plays

Advanced Micro Devices - AMD - close: 2.59 change: +0.10

Stop Loss: 2.39
Target(s): 3.25
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 05, 2012
Time Frame: to be determined
Average Daily Volume = 21.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
An analyst downgrade this past week was unable to stop the rally in shares of AMD. This semiconductor stock has been crushed over the past several months with a plunge from about $8.25 to under $2.00. Yet now it looks like AMD has finally found a bottom and all the selling has been exhausted.

AMD is currently hovering under short-term resistance at $2.60. A breakout could fuel more short covering. The most recent data listed short interest at almost 20% of the float. I am suggesting a trigger to open small bullish positions at $2.65. If triggered our target is $3.25.

Please note that this is a higher-risk, more aggressive trade. The 100-dma and the $3.00 level could prove to be resistance for this stock. I am suggesting readers keep their position size small. Don't go overboard just because the share price is cheap.

Keep in mind that normally we do not hold over a company's earnings report. Right now AMD is scheduled to report on January 22nd. If we choose to exit it could definitely limit how much time we have for this trade to work.

Trigger @ 2.65 *Small Positions*

Suggested Position: buy AMD stock @ (trigger)

Annotated chart:



Ctrip.com Intl. - CTRP - close: 23.59 change: +0.24

Stop Loss: 22.75
Target(s): 27.00
Current Gain/Loss: unopened

Entry on January xx at $ xx.xx
Listed on January 05, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
Chinese stocks are in rally mode. The Shanghai index has produced a very dramatic reversal higher off its early December lows and the rally appears to have broken the long-term down trend of lower highs. This market strength is helping fuel gains in CTRP. The stock is currently trading near nine-month highs and poised to breakout further. If that happens CTRP could see another short squeeze. The most recent data listed short interest at 16% of the float.

The January 2nd high was $23.79. I am suggesting a trigger to open small bullish positions at $23.85. If triggered our target is $27.00. We do want to keep our position size small to limit our risk.

Trigger @ 23.85 *Small Positions*

Suggested Position: buy CTRP stock @ (trigger)

Annotated chart: