NEW BULLISH Plays

Archer Daniels Midland - ADM - close: 34.20 change: +0.60

Stop Loss: 33.25
Target(s): 37.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 04, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.7 million
New Positions: Yes, see below

Company Description

Why We Like It:
ADM is in the farm products industry. They produce corn sweeteners, ethanol, flour, protein meal, vegetable oil, and more. The company reported earnings on Thursday morning, May 1st, and missed Wall Street's estimates by five cents. Yet ADM's revenues came in at $21.7 billion, which beat the estimate of $21.4 billion. The stock spiked down to short-term technical support near its 50-dma and immediately bounced. Now ADM is back to testing resistance near $34.00-34.25. A breakout here would be a new 52-week high.

I am suggesting a trigger to launch bullish positions at $34.50. If triggered our multi-week target is $37.50. The 2011 highs are near $38.00.

Trigger @ 34.50

Suggested Position: buy ADM stock @ (trigger)

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

buy the Sep $35 call (ADM1321i35) current ask $1.42

Annotated chart:

Weekly chart:



Republic Services - RSG - close: 34.48 change: +0.36

Stop Loss: 33.40
Target(s): 37.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 04, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 1.7 million
New Positions: Yes, see below

Company Description

Why We Like It:
RSG is in the waste management industry. Traders have been buying the dips for months. The stock has been showing relative strength the last couple of weeks and rallied to new multi-year highs. RSG reported earnings on April 25th and beat Wall Street estimates by five cents. Revenues were in-line with estimates at $2 billion and the company issued guidance that was also in-line with prior estimates.

Right now RSG is hovering below short-term resistance near $34.50. The high on Wednesday was $34.62. I am suggesting a trigger to launch small bullish positions at $34.75. However, more conservative investors may want to wait for a close above $35.00 as an alternative entry point. It looks like the $35.00 region was resistance back in 2007 and 2008.

I am suggesting we keep our position size small to limit our risk.

Trigger @ 34.75 *Small Positions*

Suggested Position: buy RSG stock @ (trigger)

Annotated chart: