NEW BULLISH Plays
General Electric - GE - close: 27.61 change: +0.21
Stop Loss: 26.95
Current Gain/Loss: unopened
Entry on December -- at $--.--
Listed on December 24, 2013
Time Frame: Exit PRIOR to earnings on January 17th
Average Daily Volume = 37 million
New Positions: Yes, see below
Why We Like It:
GE is in the industrial goods sector although its reach is much wider than just the one sector. The company is huge and very diversified. GE used to be considered a bellwether for the market.
The stock was crushed during the 2008 financial crisis and bear market. It's been a long, slow recovery since then. On Wednesday, December 18th GE issued a relatively bullish outlook for 2014.
GE's long-term up trend accelerated back in October and November. The stock peaked near $27.50 and then corrected. Since then GE has bounced back and today saw GE breakout over resistance at the $27.50 mark.
Tuesday's intraday high was $27.66. I am suggesting a trigger to launch bullish positions at $27.75. If triggered our short-term target is $31.50 but we will plan on exiting prior to GE's earnings report in mid January. Odds are our $31.50 target is a bit too optimistic. We may end up exiting closer to $30.00.
Trigger @ 27.75
Suggested Position: buy GE stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the Feb $28 call (GE1422B28) current ask $0.57