NEW BULLISH Plays

Avago Technologies - AVGO - close: 39.66 change: +0.89

Stop Loss: 38.25
Target(s): 44.50
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 10, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
AVGO is in the semiconductor industry. There has been growing speculation that Apple's (AAPL) iPhone refresh cycle could boost some of its part suppliers. AVGO happens to be one of them. The stock displayed relative strength today with a +2.2% gain. We want to see if there is any follow through and can AVGO breakout past major resistance at the $40.00 level.

I am suggesting a trigger to open bullish positions at $40.25. If triggered our multi-week target is $44.50. More conservative investors might want to wait for AVGO to close above $40.00 before launching bullish positions.

FYI: The Point & Figure chart for AVGO is bullish with a long-term $56.00 target.

Trigger @ 40.25

Suggested Position: buy AVGO stock @ (trigger)

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

Buy the 2014 Jan $40 call (AVGO1418a40) current ask $2.50

Annotated chart:



NVIDIA - NVDA - close: 15.45 change: +0.32

Stop Loss: 14.95
Target(s): 16.90
Current Gain/Loss: unopened

Entry on September -- at $--.--
Listed on September 10, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
NVDA is also in the semiconductor industry. This company specializes on chips for graphics. The semiconductor sector is seeing a dramatic bounce off its late August lows. What is interesting about NVDA is that shares did not follow the chip sector lower in August. Now that the market and chip stocks are moving higher we are seeing NVDA approach resistance near $15.50.

I am suggesting a trigger to open small bullish positions at $15.60. If triggered our target is $16.90.
FYI: The Point & Figure chart for NVDA is bullish with a long-term $23.00 target.

Trigger @ 15.60

Suggested Position: buy NVDA stock @ (trigger)

Annotated chart: