NEW BULLISH Plays

Dunkin' Brands Group - DNKN - close: 50.38 change: +0.62

Stop Loss: 48.40
Target(s): 57.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.1 million
New Positions: Yes, see below

Company Description

Why We Like It:
DNKN is in the services sector. When I think of Dunkin' it conjures up images of their Dunkin' Donut stores from the 1970s. The company also owns the Baskin-Robbins ice cream brand and does a huge business with its Dunkin' branded coffee.

The stock had a strong performance in 2013 with a big rally to new all-time highs. Yet the upward momentum stalled back in October. DNKN has been consolidating sideways for more than three months. The lack of momentum seemed to change in early February when DNKN reported earnings that were much stronger than expected. Shares are now breaking out past round-number resistance at $50.00 and back to hitting new all-time highs.

Today's intraday high was $50.56. I am suggesting a trigger to open bullish positions at $50.65. If triggered our multi-week target is $57.50.
FYI: The Point & Figure chart for DNKN is bullish with a $60.00 target.

Trigger @ 50.65

Suggested Position: buy DNKN stock @ (trigger)

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

buy the MAR $50 call (DNKN1422C50) current ask $1.45

Annotated chart:

Weekly chart:



Flotek Industries - FTK - close: 24.70 change: +0.60

Stop Loss: 23.95
Target(s): 29.75
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 18, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 976 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
FTK is in the basic materials sector. The company provides services and equipment to the drilling industry in addition to their chemicals business. The stock has been a strong performer in February thanks in part to an earnings beat and management raising its guidance early this month. The stock is up several weeks in a row but the last few days have felt like a consolidation.

FTK displayed relative strength again today and looks poised to breakout past round-number resistance at the $25.00 level. I am suggesting small bullish positions if FTK can trade at $25.15. If triggered our target is $29.75.
FYI: The Point & Figure chart for FTK is bullish with a $31.00 target.

Trigger @ 25.15 *small positions*

Suggested Position: buy FTK stock @ (trigger)

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

Buy the Mar $25 call (FTK1422C25) current ask $0.85

Annotated chart: