NEW BULLISH Plays

JPMorgan Chase & Co - JPM - close: 55.09 change: -1.38

Stop Loss: 52.40
Target(s): 59.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 25, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 18 million
New Positions: Yes, see below

Company Description

Why We Like It:
JPM is in the financial sector. This is a titanic-sized bank and used to be considered the best of breed for the major banks. Last year was fraught with legal issues for JPM. Yet in spite of its troubles shares of JPM traded at new multi-year highs just a week ago. Currently the stock is seeing some post-earnings profit taking. We think it's overdone. JPM is quickly nearing a long-term trend of higher lows and we want to be ready to buy the dip.

I am suggesting a buy-the-dip trigger at $54.00. Our multi-week target is $59.00.

Trigger @ $54.00

Suggested Position: buy JPM stock @ (trigger)

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

Buy the MAR $55 call (JPM1422C55) current ask $1.88

Annotated chart:

Weekly chart:



Mylan, Inc. - MYL - close: 44.31 change: -0.95

Stop Loss: 41.90
Target(s): 48.00
Current Gain/Loss: unopened

Entry on January -- at $--.--
Listed on January 25, 2014
Time Frame: Exit PRIOR to earnings in late February
Average Daily Volume = 3.0 million
New Positions: Yes, see below

Company Description

Why We Like It:
MYL is in the healthcare sector. The company makes generic and branded drugs. The stock delivered a very strong performance in 2013 and the momentum continued into 2014. Shares hit new all-time highs on Wednesday morning. Since then MYL has seen some profit taking as the broader market retreats lower. The stock is quickly approaching what should be support near its rising 50-dma. I am suggesting we buy the dip and use a trigger to launch bullish positions at $43.55. If triggered we'll start with a stop loss at $41.90. Our target is $48.00 but we will plan on exiting prior to MYL's earnings report in late February (no confirmed date yet).

Trigger @ $43.55

Suggested Position: buy MYL stock @ (trigger)

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

Buy the Mar $45 call (MYL1422C45) current ask $1.84

Annotated chart: