NEW BULLISH Plays

Nexstar Broadcasting Group - NXST - close: 49.67 change: -0.19

Stop Loss: 47.75
Target(s): 57.50
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 30, 2013
Time Frame: 9 to 12 weeks
Average Daily Volume = 430 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NXST is in the services sector. The company is in television broadcasting and owns 72 television stations. There has been new interest about potential consolidations in the broadcasting and cable industries. That may have helped NXST recover from a somewhat disappointing earnings report in early November.

The stock recently broke out past resistance near $48.00 and shares ended the week at a new all-time high. NXST is currently testing round-number, psychological resistance at the $50.00 mark. I am suggesting a trigger to open bullish positions at $50.50. If triggered our multi-week target is $57.50 but we will need to be nimble and adjust our target as needed.
FYI: The Point & Figure chart for NXST is bullish with a $63.00 target.

Trigger @ 50.50

Suggested Position: buy NXST stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Best Buy Co. - BBY - close: 40.55 change: +0.94

Stop Loss: 41.25
Target(s): 35.25
Current Gain/Loss: unopened

Entry on November -- at $--.--
Listed on November 30, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 7.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
BBY runs a chain of consumer electronics retail stores. In early November the stock was one of the market's best performers with shares up more than +200% in 2013. Shares hit some profit taking about two weeks ago when BBY reported its earnings. BBY earnings results were actually better than expected. Yet cautious comments from BBY management about the holiday shopping season sparked a sell-off.

BBY has managed a bounce from its post-earnings low but the gains have been limited. Investors are cautious on many of the retailing names. Wall Street analysts seem mostly positive on BBY but there is a lot of caution about the 2013 holiday shopping season. The National Retail Federation is estimating +3.9% sales growth this year over last year. Meanwhile estimates for actual foot traffic into retail stores is expected to fall by more than -11%. Overall some are expecting 2013 to be one of the worst holiday shopping seasons in years.

BBY has suffered in the past due to tough competition from Wal-Mart (WMT) and Amazon.com (AMZN). Some analysts believe that BBY is better prepared to combat its rivals this year but that remains to be seen. We suspect that BBY could see a sell-the-news type of move lower when we hear about Black Friday and Cyber Monday sales numbers in a couple of days. I do consider this a more aggressive, higher-risk trade since we're going against the grain of BBY's long-term up trend.

We are suggesting small bearish positions if BBY can trade at $39.75. If triggered our target is $35.25. More aggressive traders may want to aim lower since the Point & Figure chart for BBY is bearish with a $31.00 target.

Trigger @ 39.75 *small positions*

Suggested Position: short BBY stock @ (trigger)

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

Buy the 2014 Jan $40 PUT (BBY1418m40) current ask $2.21

Annotated chart: