NEW BULLISH Plays

National Instruments - NATI - close: 30.03 change: +0.12

Stop Loss: 29.60
Target(s): 32.75
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 340 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NATI produces a number of technical instruments and software applications for measurement automation. The company recently reported earnings on January 31st. The results were better than expected and the stock spiked higher toward round-number resistance at the $30.00 level. Since then shares have been digesting gains and consolidating sideways below the $30 level but with a bullish trend of higher lows. Now NATI is poised to breakout.

I am suggesting a trigger to open bullish positions at $30.35. That would be a new 52-week high. If triggered our multi-week target is $32.75.
FYI: The Point & Figure chart for NATI is bullish with a $40.00 target.

Trigger @ 30.35

Suggested Position: buy NATI stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

DuPont Fabros Tech. - DFT - close: 23.09 change: -0.25

Stop Loss: 24.05
Target(s): 20.25
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.25 million
New Positions: Yes, see below

Company Description

Why We Like It:
DFT is a REIT focused on owning and managing large-scale data centers. Shares appear to be in decline. The big oversold bounce from its November 2012 lows failed multiple times at resistance near $25.00. The company reported earnings on Feb. 6th and missed estimates by three cents. Management offered more bad news with bearish guidance for the first quarter.

I am suggesting a trigger to open bearish positions at $22.85. If triggered our target is $20.25. Please note that we do want to keep our position size small. That's because there is already a lot of short interest. The most recent data listed short interest at 22% of the 62.2 million share float. That raises the risk of a short squeeze. Readers may want to buy the put options to limit their risk to their size of their position.
FYI: The Point & Figure chart for DFT is bearish with a $10.00 target.

Trigger @ 22.85 *Small Positions*

Suggested Position: short DFT stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Mar $25 PUT (DFT1316o25) current ask $2.20

Annotated chart: