NEW BULLISH Plays

Tempur Sealy Intl. - TPX - close: 52.87 change: +1.43

Stop Loss: 49.95
Target(s): 57.50
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 757 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
TPX is in the consumer goods sector. The company manufacturers and sells beds, mattresses, and other bedding products. The stock has spent the last three weeks consolidating sideways at one-year highs in the $50-52 zone. Today's move is a bullish breakout past resistance at $52.00. If this rally continues the stock could see some short covering. The most recent data listed short interest at 17% of the 50 million share float.

I am suggesting investors open positions now, at current levels. More nimble traders might want to try and buy a dip near $52.00, which should be short-term support but there is no guarantee TPX will provide a dip. Our multi-week target is $57.50. More aggressive traders, with enough patience, may want to aim higher since the Point & Figure chart for TPX is bullish with a long-term $66.00 target.

*Launch positions at the opening bell*

Suggested Position: buy TPX stock @ (the open)

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

Buy the Mar $55 call (TPX1422c55) current ask $3.50

Annotated chart:



Western Refining, Inc. - WNR - close: 41.38 change: +1.54

Stop Loss: 38.95
Target(s): 46.00
Current Gain/Loss: unopened

Entry on December -- at $--.--
Listed on December 23, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Company Description

Why We Like It:
WNR is in the basic materials sector. The company is a crude oil refiner that also markets its refined products. The company made headlines back in November when it purchased a controlling stake in Northern Tier Energy LP (NTI). What I find interesting is that just a few days ago NTI employees have threatened to strike and walk off the job at NTI's refinery and at NTI's SuperAmerica gas stations. According to the labor union representing the workers WNR is proposing job cuts and a reduction in pay. The deadline for the union workers is December 31st, 2013. If the stock price of WNR is any indication then Wall Street is not worried about any potential strike. Shares of WNR are actually showing relative strength with a +3.8% gain today and a bullish breakout from a neutral, pennant-shaped consolidation pattern.

I am suggesting small bullish positions at the opening bell tomorrow. More nimble traders may want to look for a dip back into the $40.50-40.75 zone as an alternative entry point. I would keep in mind that there is a lot of short interest. The most recent data listed short interest at about 28% of the 50.6 million share float. That could fuel a short squeeze in WNR. I am suggesting small positions to limit our risk just in case there is a strike.

Our short-term target is $46.00. More aggressive traders could aim higher since the Point & Figure chart for WNR is bullish with a $50.00 target.

*Small positions at the opening bell*

Suggested Position: buy WNR stock @ (the open)

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

buy the Mar $42 call (WNR1422c42) current ask $2.70

Annotated chart: