NEW BULLISH Plays

Progressive Corp. - PGR - close: 23.44 change: +0.24

Stop Loss: 22.45
Target(s): 26.00
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 9, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 4.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this insurance company have been showing relative strength. Friday's rally pushed PGR to a new five-year high past potential resistance at its early 2012 highs.

I am suggesting new bullish positions now. More conservative traders could wait for a rally past $23.50 instead. Alternatively, nimble traders could wait and try and buy a dip near its rising 10-dma. Our multi-week target is $26.00.

Suggested Position: buy PGR stock @ (the open)

Annotated chart:



Terex Corp. - TEX - close: 33.51 change: +0.57

Stop Loss: 31.95
Target(s): 38.00
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 9, 2013
Time Frame: exit prior to earnings in late February
Average Daily Volume = 2.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
TEX is in the construction machinery business. Investors have been bullish on the stock. Shares have rallied to a new 52-week high this Friday. This move looks like a breakout from its recent two-week sideways consolidation.

I want to see a little follow through. I am suggesting a trigger to open bullish positions at $33.70. If triggered our target is $38.00. However, we will plan to exit prior to the late February earnings report. Thus, odds of TEX actually hitting $38 before we exit are probably slim but there is the possibility of a short squeeze.

Trigger @ 33.70

Suggested Position: buy TEX stock @ (trigger)

Annotated chart: