NEW BULLISH Plays

Altria Group - MO - close: 36.07 change: +0.13

Stop Loss: 35.35
Target(s): 40.00
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 27, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.6 million
New Positions: Yes, see below

Company Description

Why We Like It:
MO is the largest cigarette maker in the U.S. The company recently reported earnings that beat estimates by a penny. Revenues were in-line with estimates. With their earnings report MO also unveiled they plan to jump into the e-cigarette market.

MO has traditionally been seen as a defensive, safe-haven play. Consumers continue to buy cigarettes even in a down economy. If the stock market turns weak we could see investors looking for safety in MO since they can park their money here and earn a 5% dividend yield.

Bulls have continued to buy the dips in MO and now shares are testing resistance at their all-time highs set in summer last year. The all-time high was $36.29. I am suggesting a trigger to launch bullish positions at $36.50. If triggered our target is $40.00 but keep in mind that MO does not move very fast. This could be a multi-week trade.

Trigger @ 36.50

Suggested Position: buy MO stock @ (trigger)

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

buy the Jun $35 call (MO1322F35) current ask $1.44

Annotated chart:



NEW BEARISH Plays

Home Inns & Hotels - HMIN - close: 24.96 change: -0.53

Stop Loss: 25.25
Target(s): 20.25
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 27, 2013
Time Frame: exit PRIOR to earnings on May 13th
Average Daily Volume = 371 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
HMIN operates more than 1,770 economy hotels in China. Growing worries over an economic slowdown in China could have investors soured on this stock. Traders have been selling the rallies and now the bearish trend is pushing HMIN against support in the $24.50-25.00 zone.

I am suggesting a trigger to launch bearish positions at $24.00. More aggressive traders could jump in sooner. If triggered our target is $20.25. We do not want to hold over the earnings report on May 13th.

Trigger @ 24.00

Suggested Position: short HMIN stock @ (trigger)

Annotated chart:

Weekly chart: