NEW BULLISH Plays

AVG Technologies - AVG - close: 20.88 change: +0.81

Stop Loss: 19.95
Target(s): 24.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 716 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
AVG is in the technology sector. The company develops security software. The stock had a rough fourth quarter last year with a big drop from its $26 highs. AVG appeared to find support in the $15-16 area and now shares are in rally mode thanks to a better than expected earnings report.

The most recent data listed short interest at 27% of the small 27.1 million share float. Further gains could spark some short covering. Right now AVG is hovering just below resistance at the $21.00 mark.

I am suggesting a trigger to open bullish positions at $21.10. If triggered our target is $24.75.
FYI: The Point & Figure chart for AVG is bullish with a $32.50 target.

Trigger @ 21.10

Suggested Position: buy AVG stock @ (trigger)

Annotated chart:



NEW BEARISH Plays

Nexstar Broadcasting Group - NXST - close: 39.77 change: -1.02

Stop Loss: 41.25
Target(s): 35.10
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 10, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 739 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NXST is in the services sector. The company is in the television broadcasting industry and a digital media company. It has not been a good year for NXST. The stock peaked in late December and it's been working its way lower ever since. NXST has now built a bearish trend of lower highs and lower lows.

Today's display of relative weakness (-2.5%) also produced a breakdown below round-number support at $40.00 and technical support at its exponential 200-dma. The intraday low was $39.52. I am suggesting a trigger to open bearish positions at $39.40. If triggered our short-term target is $35.10.
FYI: The Point & Figure chart for NXST is bearish with a $27.00 target.

Trigger @ 39.40

Suggested Position: Short NXST stock @ (trigger)

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

Buy the Apr $40 PUT (NXST1419P40) current ask $2.65

Annotated chart: