NEW BULLISH Plays

Nexstar Broadcasting - NXST - close: 35.00 change: +1.00

Stop Loss: 33.49
Target(s): 39.50
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 26, 2013
Time Frame: 4 to 8 weeks
Average Daily Volume = 615 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NXST is in the television broadcasting business. After an impressive 2013 rally the stock spent about four weeks consolidating sideways from mid-May to mid-June. Then the rally ignited again. Now after consolidating sideways for the last few days shares outperformed the market today following some bullish analyst comments this morning.

NXST is testing round-number resistance at the $35.00 level. The high today was $35.34. I am suggesting we use a trigger at $35.50 to launch small bullish positions. If triggered our target is $39.50.

If you're worried about risk you can limit your exposure by using the options.

Trigger @ 35.50 *small positions*

Suggested Position: buy NXST stock @ (trigger)

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

buy the Aug $40 call (NXST1317H40) current ask $1.05

Annotated chart:



NEW BEARISH Plays

Cliffs Natural Res. - CLF - close: 15.70 change: -0.50

Stop Loss: 16.51
Target(s): 12.15
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 26, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 11.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
Cliffs Natural Resources Inc. is getting killed. The stock was already in a long-term decline, trading near $100 back in early 2011. Now the weakness in mining and commodity-related issues is pushing it to new multi-year lows. Shares recently broke down below support near $17.00. Now it's trying to hold support near $15.50. If the $15.50 level breaks the next stop could be its 2009 lows near $12.00 (actually $11.84).

I am suggesting small bearish positions if CLF hits $15.40 or lower. If triggered our target is $12.15. I am suggesting small positions because CLF is arguably oversold here. Instead of shorting CLF you may want to try and limit your risk by using put options (your risk being the cost of the option).

Trigger @ 15.40 *small positions*

Suggested Position: short CLF stock @ (trigger)

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

Buy the Aug $15 PUT (CLF1317T15) current ask $1.29

Annotated chart: