NEW BULLISH Plays

Cognex Corp. - CGNX - close: 38.70 change: +0.56

Stop Loss: 37.35
Target(s): 43.50
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 22, 2014
Time Frame: exit PRIOR to earnings on February 13th
Average Daily Volume = 465 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CGNX is in the technology sector. The company makes vision systems for automated manufacturing. Like so many stocks last year 2013 was a great year for CGNX. More important to us now is how CGNX has been relatively resilient to any market declines in 2014. Investors bought the minor pullback and the following bounce has now pushed CGNX to new all-time highs.

I am suggesting a trigger to open bullish positions at $39.00. If triggered our target is $43.50. I would be tempted to aim higher but we will plan to exit prior to earnings on February 13th.

Suggested Position: buy CGNX stock @ $39.00

Annotated chart:



China Internet ETF - KWEB - close: 35.85 change: +0.47

Stop Loss: 34.85
Target(s): 39.75
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 22, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 91 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
KWEB is a new ETF that tries to mimic the CSI Overseas China Internet Index. The top ten components for this ETF are: Tencent Holdings, QIHU, BIDU, NTES, CTRP, VIPS, SFUN, Kingsoft Corp, VNET, and SOHU. This ETF began trading back in August 2013. Fortunately daily trading volume has improved significantly in recent weeks but it remains relatively low at just 90 thousand shares a day.

KWEB has been showing strength with shares working on their fourth weekly gain in a row and up seven out of the last eight weeks. The $36.00 level appears to be significant resistance. We're suggesting a trigger to open small bullish positions at $36.15. If triggered our target is $39.75.

Trigger @ 36.15 *small positions*

Suggested Position: BUY KWEB @ $36.15

Annotated chart: