NEW BULLISH Plays

ACADIA Pharmaceuticals - ACAD - close: 19.31 change: +0.76

Stop Loss: 18.20
Target(s): 24.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
We are bringing ACAD back to the newsletter. We recently caught the rally from $15 to $20. Now after a pullback from round-number resistance at $20.00 the stock is rebounding. Shares look poised to breakout. A rally past resistance at $20 could fuel another bout of short covering. The most recent data listed short interest at 14% of the small 49.3 million share float.

I do consider this an aggressive, higher-risk trade because ACAD can be a volatile stock. Therefore we do want to keep our position size small. The June 10th high was $20.09. I am suggesting a trigger at $20.20 to buy the stock. If triggered our target is $24.50.

Trigger @ 20.20 *Small Positions*

Suggested Position: buy ACAD stock @ (trigger)

Annotated chart:



Addus HomeCare - ADUS - close: 19.67 change: +0.34

Stop Loss: 18.35
Target(s): 24.00
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 178 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
ADUS is in the home healthcare industry. Traders have consistently bought the dips near its rising 10-dma these last few weeks. Now ADUS is testing round-number, psychological resistance at the $20.00 level. We want to buy a breakout.

I am suggesting a trigger to open small bullish positions at $20.15. If triggered our target is $24.00.

Trigger @ 20.15 *small positions*

Suggested Position: buy ADUS stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Freeport-McMoRan - FCX - close: 29.57 change: -0.14

Stop Loss: 30.35
Target(s): 25.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 15, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 20 million
New Positions: Yes, see below

Company Description

Why We Like It:
The price of precious metals, including gold, silver, and copper, have been trending lower in spite of a sharp drop in the dollar recently. Weak metal prices have not helped FCX, one of the world's largest miners. The company was dealt a blow when it closed its Grasberg mine in Indonesia after an accident killed 28 workers. It is estimated that the mine could be closed for two to three months. FCX has declared force majeure on its shipments from the Grasberg mine.

Technically the stock has been sinking under a bearish trend of lower highs for months. This past week saw a bearish breakdown below round-number support at $30.00. The bounce on Friday failed at $30.23 and closed near its lows for the day. Thursday's low was $29.24. I am suggesting a trigger to open bearish positions at $29.00. If triggered our target is $25.50 but I will point out that the April low near $27.25 could be short-term support and FCX might bounce on its initial test of this level.

FYI: FCX has a special $1.00 dividend payable on July 1st, 2013 to shareholders of record on June 14th.

Trigger @ 29.00

Suggested Position: short FCX stock @ (trigger)

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

Buy the Aug $27 PUT (FCX1317T27) current ask $0.74

Annotated chart: