NEW BULLISH Plays

Isis Pharmaceuticals - ISIS - close: 51.06 change: +1.10

Stop Loss: 48.65
Target(s): 58.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 01, 2014
Time Frame: Exit PRIOR to earnings in late February
Average Daily Volume = 1.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
ISIS is in the healthcare sector. The company is considered part of the biotech industry. The bullish momentum from 2013 has accelerated in 2014. The stock has garnered positive analyst comments in recent weeks and shares have rallied to new all-time highs. ISIS displayed relative strength on Friday and is poised to breakout past short-term resistance near the $52.00 level.

We are suggesting a trigger to open bullish positions at $52.15. If triggered our target is $58.50. However, we will plan to exit prior to ISIS earnings report, which is expected at the very end of February but no date has been confirmed yet.


FYI: The Point & Figure chart for ISIS is currently bearish but a move over $52.00 would produce a new buy signal.

Trigger @ $52.15

Suggested Position: buy ISIS stock @ (trigger)

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

Buy the MAR $55 call (ISIS1422C55) current ask $4.50

Annotated chart:



NEW BEARISH Plays

The Fresh Market, Inc. - TFM - close: 34.96 change: -0.20

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 01, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
TFM is in the services sector. The company runs a specialty grocery store with almost 150 locations. Last year was a rough one for shares of TFM. The stock crashed on November 22nd following a disappointing earnings report where TFM missed on both the top and bottom line estimate. Management also guided lower in that report. TFM spent the rest of 2013 drifting sideways.

Now it's 2014 and there are growing concerns about the health of the U.S. consumer and worries that consumer spending in the fourth quarter were a lot worse than expected. This has helped push TFM to new two-year lows. This past week has seen TFM consolidate sideways with a bearish trend of lower highs that should blossom into a breakout to new relative lows.

I am listing this as a more aggressive, higher-risk trade due to the amount of short interest. The latest data listed short interest at about 25% of the 40 million share float. The bears have a pretty good story for the stock to trend lower but that much short interest does pose a danger of short-term spikes higher.

I'm suggesting small bearish positions if TFM can trade at $34.60 or lower. Our target is $30.25. More aggressive traders could aim lower since the Point & Figure chart for TFM is bullish with an $18 target.

Trigger @ 34.60

Suggested Position: short TFM stock @ (trigger)

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

Buy the MAR $35 PUT (TFM1422o35) current ask $2.75

Annotated chart: