NEW BULLISH Plays

MDC Partners Inc. - MDCA - close: 25.93 change: +0.20

Stop Loss: 24.45
Target(s): 28.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 215 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
MDCA is a marketing firm. The stock has been on a steady rise for months. The last couple of weeks have seen shares consolidating sideways below resistance near the $26.00 level. At the moment MDCA looks poised to breakout past this level.

I am suggesting a trigger to open bullish positions at $26.20. If triggered our multi-week target is $28.50.

Trigger @ 26.20

Suggested Position: buy MDCA stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Best Buy Co. - BBY - close: 38.38 change: -1.03

Stop Loss: 40.25
Target(s): 35.10
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
BBY is in the services sector. They're known for their big-box retail locations full of consumer electronics. They're also known as inadvertently becoming a showroom for Amazon.com. They've tried to fight the showroom phenomenon and last year the stock soared. It looks like after a huge rally from its late 2012 lows the up trend is finally breaking down. Investors could be worried that BBY was too competitive and promotional with their pricing this past holiday season and that margins may have suffered. News out today that electronics retailer hhgregg, Inc. (HGG) issued an earnings warning doesn't bode well for electronics retailers.

On Thursday, January 9th, we should hear some same-store sales numbers from major retailers around the country. This news could move the industry.

Currently BBY appears to be breaking down. Today's display of relative weakness is a breakdown below its 100-dma. I am suggesting new bearish positions now, at the opening bell tomorrow morning. More conservative traders may want to wait for BBY to trade below today's low (37.78) before initiating positions since the $38 level appears to be possible support. Our target is $35.10. More aggressive traders could aim for technical support at the simple 200-dma, currently near $33.25 instead.

Suggested Position: short BBY stock @ (the open)

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

Buy the Feb $38 PUT (BBY1422N38) current ask $2.06

Annotated chart: