NEW BULLISH Plays

EMC Corp. - EMC - close: 26.33 change: -0.04

Stop Loss: 25.70
Target(s): TBD, exit prior to earnings
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 18, 2014
Time Frame: Exit PRIOR to earnings on January 29th
Average Daily Volume = 23 million
New Positions: Yes, see below

Company Description

Why We Like It:
EMC is in the technology sector. The company develops information technology storage systems and software. The stock is up significantly from its mid-December lows. The momentum has continued into 2014 with EMC up five weeks in a row. Traders bought the dip on Friday. We suspect that the rally could continue into the company's earnings report.

Friday's high was $26.40. I am suggesting a trigger to open bullish positions at $26.45. We will plan on exiting prior to EMC's earnings report on January 29th.

Trigger @ 26.45

Suggested Position: buy EMC stock @ (trigger)

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

Buy the Feb $27 call (EMC1422B27) current ask $0.50

Annotated chart:



Hewlett-Packard Co. - HPQ - close: 29.80 change: +0.24

Stop Loss: 28.75
Target(s): 34.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 18, 2014
Time Frame: exit PRIOR to earnings on Feb. 20th
Average Daily Volume = 13.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
HPQ is also in the technology sector. The company makes both hardware and software and is probably best known for its large printer business. The stock got a boost this past week with an analyst upgrade and a new $39 price target. HPQ is now testing major resistance near the $30.00 mark. A breakout here could inspire more buying pressure.

I am suggesting a trigger to launch bullish positions at $30.15. If triggered our target is $34.50. However, that might be a little optimistic since we plan to exit prior to HPQ's earnings report in late February.

FYI: The Point & Figure chart for HPQ is bullish with a long-term $47 target.

Trigger @ 30.15

Suggested Position: buy HPQ stock @ (trigger)

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

Buy the Feb $30 call (HPQ1422B30) current ask $1.31

Annotated chart:

Weekly chart: