NEW BULLISH Plays

Cognex Corp. - CGNX - close: 45.24 change: +1.00

Stop Loss: 43.95
Target(s): 49.50
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 18, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 269 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CGNX is in the technology sector. The company provides vision systems, software, and sensors. The stock has delivered a very impressive rally off its late April lows. Now CGNX is breaking out past its early 2012 resistance to hit levels not seen since the year 2000.

We want to jump on board if CGNX can trade at $45.50. If triggered our short-term target is $49.50. We'll try and limit our risk with a stop loss at $43.95. I am suggesting we keep our position size small. FYI: The Point & Figure chart for CGNX is bullish with a $57.00 target.

Trigger @ 45.50 *Small Positions*

Suggested Position: buy CGNX stock @ (trigger)

Annotated chart:



Lions Gate Entertainment - LGF - close: 27.52 change: +0.53

Stop Loss: 26.60
Target(s): 29.75
Current Gain/Loss: + 0.0%

Entry on May 20 at $--.--
Listed on May 18, 2013
Time Frame: Exit PRIOR to earnings on May 30th
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
The short-crushing rally in shares of LGF continue. This is the movie studio that brought you the Twilight series and is currently producing the Hunger Games trilogy. The second movie in the Hunger Games series comes out in November this year.

Shares of LGF spent the first half of May digesting gains and consolidating sideways near $26.00. Thursday's performance looked like a bearish reversal pattern but traders bought the dip at the rising 10-dma on Friday morning. Any further gains could spark more short covering. The most recent data listed short interest at 12% of the 78 million-share float.

I am suggesting we buy this bounce off the 10-dma and launch positions at the opening bell on Monday morning. More conservative traders may want to wait for a rally past $28.00 instead. Our short-term target is $29.75 but we will plan on exiting positions prior to LGF's earnings report due out on May 30th.

*Small Positions*

Suggested Position: buy LGF stock @ (the open)

Annotated chart: