NEW BULLISH Plays

Best Buy Co. - BBY - close: 29.93 change: +0.60

Stop Loss: 29.25
Target(s): 33.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings in late August
Average Daily Volume = 4.9 million
New Positions: Yes, see below

Company Description

Why We Like It:
Best Buy is a big box electronics retailer. After a miserable 2011 and 2012 the stock has staged an impressive rebound in 2013. Investors have been consistently buying the dips and it sounds like Wall Street has turned bullish on the stock again with price targets in the $35-38 zone.

BBY displayed relative strength today (+2.0%) but we'd like to see it rally past its early July highs near $30.35. I am suggesting a trigger to open bullish positions at $30.40. If triggered we will target a move to $33.50 but we do not want to hold over the late August earnings report.

Trigger @ 30.40

Suggested Position: buy the stock @ (trigger)

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

buy the Sep $32 call (BBY1321i32) current ask $1.03

Annotated chart:



SouFun Holdings - SFUN - close: 32.17 change: +1.68

Stop Loss: 30.65
Target(s): 37.50
Current Gain/Loss: unopened

Entry on July -- at $--.--
Listed on July 25, 2013
Time Frame: exit PRIOR to earnings in mid August
Average Daily Volume = 354 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
SFUN is a real estate focused website in China. The stock had been languishing in the $22-28 level for most of 2013. That changed last week. In two days SFUN shares soared +28% and broke out to new highs. The company said they don't know of any reason why shares might be acting strangely.

SFUN saw a brief pullback before traders started buying the dip. It might be worth noting that SFUN began trading ex-dividend today (July 25th) for a 98-cent dividend but that didn't seem to slow the rally today (+5.4%). Investors should also note that the most recent data listed short interest at almost 16% of the very small 18.9 million-share float. There is no way to know how many of those traders are still short today.

Technically SFUN looks poised to breakout to new highs again. Traders should consider this a higher-risk, more aggressive trader. We will suggest a trigger to open small bullish positions at $32.35. If triggered our target is $37.50 but we will be actively managing the target so expect that number to change.

Trigger @ 32.35 *small positions*

Suggested Position: buy SFUN stock @ (trigger)

Annotated chart: