NEW BULLISH Plays

DR Horton Inc. - DHI - close: 23.89 change: +0.32

Stop Loss: 22.85
Target(s): 27.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 8.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
DHI is part of the industrial goods sector. The company is a homebuilder in 27 states and 78 markets. DHI reported earnings in late January and beat Wall Street's estimates on both the top and bottom line. DHI's closed homes were up +19% for the same quarter a year ago and its backlog of homes to build rose +5%.

There are plenty of contrary opinions on the housing market. The data has been mixed. The latest existing home sales data from December saw sales rise just +1% to an annual pace of 4.87 million homes. That was a hair under expectations and a was also a year-over-year decline from December 2012. The most recent new home sales numbers were a shocking -7% decline to 414,000, down from 445K in November. Most market pundits just blamed the extremely cold weather, which has been a popular excuse for a lot of market data lately. The new home sales figures have failed to stop the rally in the homebuilder stocks. The group has been showing decent relative strength.

Currently DHI is hovering just below resistance near $24.00. A breakout could spark some short covering. The most recent data listed short interest at 18% of the 264 million-share float. I am suggesting a trigger to open bullish positions at $24.15. If triggered our multi-week target is $27.50.
FYI: The Point & Figure chart for DHI is bullish with a $28.00 target.

Trigger @ 24.15

Suggested Position: buy DHI stock @ (trigger)

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

Buy the MAR $24 call (DHI1422C24) current ask $1.16

Annotated chart:

Weekly chart:



Galectin Therapeutics - GALT - close: 13.91 change: +1.62

Stop Loss: 12.25
Target(s): 17.75
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 08, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 994 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
GALT is in the healthcare sector. The company develops drug therapies for cancer and fibrotic disease. Shares of GALT saw huge moves on January 9th and 10th this year following even bigger moves (and news) from a rival biotech firm ICPT, which issued positive news on one of its drug treatments (similar to GALT's).

Shares of GALT have spent the last four weeks consolidating sideways but they look poised to breakout from their current trading range. Trading biotechs can always be a high-risk proposition. The wrong headline can send shares plunging obviously the right headline can send them soaring.

We want to use small positions to limit our risk. Use a trigger at $14.35 to launch positions. Our short-term target is $17.75. More aggressive investors may want to aim higher.
FYI: The Point & Figure chart for GALT is bullish with a long-term $37.00 target.

(NOTE: Investors may want to consider using options to limit their risk.)

Trigger @ 14.35

Suggested Position: buy GALT stock @ (trigger)

Annotated chart: