NEW BULLISH Plays

Micron Technology - MU - close: 23.08 change: +0.54

Stop Loss: 21.90
Target(s): TBD
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 14, 2013
Time Frame: exit PRIOR to earnings on Jan. 7th
Average Daily Volume = 44 million
New Positions: Yes, see below

Company Description

Why We Like It:
MU is in the technology sector. The company makes memory chips (semiconductors). The stock has been a darling of Wall Street this year with a rally from $6 in late 2012 to $23 today. The stock's upward momentum seems bullet proof for the moment. Shares have garnered a lot of bullish analyst comments. The stock could benefit from window dressing before yearend.

MU is certainly overbought with a seven-week win streak but that doesn't mean it can't grow more overbought. However, investors may want to limit their position size to reduce risk. Tonight we're suggesting new bullish positions at the opening bell on Monday with a stop loss at $21.90. We will plan on exiting prior to MU's earnings report on January 7th, 2014.

*Small positions at the opening bell*

Suggested Position: buy MU stock @ (the open)

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

buy the Jan $23 call (MU1418A23) current ask $1.51

Annotated chart:



NEW BEARISH Plays

AECOM Technology - ACM - close: 27.47 change: -0.33

Stop Loss: 28.60
Target(s): 24.25
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 14, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 525 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
ACM is in the services sector. According to their website AECOM provides fully integrated professional technical and management support services for a broad range of markets. When the company reported earnings in mid November they also lowered their 2014 guidance. You can see how the stock gapped down in November on this news.

Technically ACM has a bleak outlook. The stock has created a huge bearish head-and-shoulders pattern over the last year. The recent breakdown below support at $28.00 also breaks the neckline to this H&S pattern. The pattern is forecasting a drop toward $21.00. The Point & Figure chart is also bearish and forecasting a drop toward $23.00.

We are suggesting bearish positions at the opening bell on Monday. Our target is $24.25 since the $24 level could be support.

*Small positions at the opening bell*

Suggested Position: short ACM stock @ (the open)

Annotated chart:

Weekly chart:



Cisco Systems - CSCO - close: 20.24 change: -0.27

Stop Loss: 21.05
Target(s): 17.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 14, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 50 million
New Positions: Yes, see below

Company Description

Why We Like It:
CSCO is in the technology sector. They are a major manufacturer of networking equipment (e.g. routers). Thursday was the company's annual analyst day. CSCO lowered their sales estimates for the next several years and the stock underperformed the market with a drop to new seven-month lows.

CSCO, like a lot of big name technology companies in the U.S., are facing slower sales overseas thanks to the disclosure of their participation in the NSA surveillance programs. CSCO could be facing a new long-term bear market. Shares are nearing round-number, psychological support at the $20.00 level.

We're suggesting a trigger to open bearish positions at $19.85. If triggered our target is $17.00 although we'll adjust this as the play progresses.

Trigger @ 19.85

Suggested Position: short CSCO stock @ (trigger)

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

Buy the Feb $20 PUT (CSCO1422n20) current ask $0.85

Annotated chart: