NEW BULLISH Plays

MGM Resorts Intl. - MGM - close: 18.42 change: +0.13

Stop Loss: 17.99
Target(s): 19.95
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.6 million
New Positions: Yes, see below

Company Description

Why We Like It:
MGM is a casino giant with resorts in Nevada, Michigan, Mississippi, and Macau (China). It is MGM's operations in Macau that seem to be driving the stock higher. Investors are ignoring a soft year in Vegas. According to gambling regulators August gambling revenue for the Las Vegas strip for the entire industry was down -14%. Meanwhile gambling revenues for the casino industry were up +17.6% in Macau (year over year).

Shares of MGM have been a consistent winner over the last several weeks. The bullish trend of higher lows is butting up against resistance near the $18.50 area. The stock is likely to see a bullish breakout higher soon. Friday's intraday high was $18.62. I am suggesting a trigger to open bullish positions at $18.70. If triggered our short-term target is $19.95.

Trigger @ 18.70

Suggested Position: buy MGM stock @ (trigger)

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

Buy the Oct $20 call (MGM1319j20) current ask $0.31

Annotated chart:



NEW BEARISH Plays

Iron Mountain Inc. - IRM - close: 25.84 change: +0.10

Stop Loss: 26.65
Target(s): 21.00
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 07, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
IRM is considered part of the technology sector. The company provides information management services. The stock peaked at all-time highs near $39 in May of this year. The correction lower turned into a bear market. Then on June 7th, 2013 the stock gapped down and lost -15.8% in one session. The big drop was the market's reaction to news that IRM's attempt to convert to a REIT was meeting resistance with the I.R.S.

IRM's most recent earnings report was also disappointing with the company missing Wall Street's estimates on both the top and bottom line and management lowering their guidance. Since then IRM has continued to underperform the market with a bearish trend of lower lows and lower highs. Now IRM is in the process of breaking down below support near $26.00.

Friday's low was $25.53. I am suggesting a trigger to open bearish positions at $25.40. If triggered our multi-week target is $21.00. Please note that I do expect a short-term bounce near the $24 level.

FYI: The Point & Figure chart for IRM is bearish with a $12.00 target.

Trigger @ 25.40

Suggested Position: short IRM stock @ (trigger)

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

buy the Oct $25 PUT (IRM1319v25) current ask $0.95

Annotated chart: