NEW BULLISH Plays

MasTec, Inc. - MTZ - close: 43.25 change: +0.58

Stop Loss: 41.75
Target(s): 49.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 24, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 750 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
MTZ is in the industrial goods sector. They are an infrastructure construction company. MTZ reported earnings in late February and while they beat estimates they did guide lower. Oddly enough the stock rallied anyway. During the month of March multiple analyst firms have raised their price target on MTZ.

The stock reversed on March 7th but the pullback only lasted about three days. The stock appears to be done digesting its February rally. Now it's on the verge of breaking out to new multi-year highs. If that happens MTZ could see more short covering. The most recent data listed short interest at 15% of the 58.4 million-share float.

Today's high was $43.49. I am suggesting a trigger to open bullish positions at $43.55. If triggered our multi-week target is $49.75.
FYI: The Point & Figure chart for MTZ is bullish with a $70 target.

Trigger @ 43.55

Suggested Position: buy MTZ stock @ $43.55

Annotated chart:



NewLink Genetics Corp. - NLNK - close: 30.16 change: +0.98

Stop Loss: 27.95
Target(s): 39.75
Current Gain/Loss: unopened

Entry on March -- at $--.--
Listed on March 24, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 818 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
NLNK is in the healthcare sector. They are a biotech company. The stock has been exceptionally volatile this year with a move from $21.00 on January 1st to almost $53.50 intraday on February 25th. Some of this volatility could be due to the large short interest. The most recent data listed short interest at 23% of the small 19.7 million share float.

What is interesting about NLNK is how shares are not participating in the biotech sell-off. If you haven't noticed yet the biotech stocks are getting crushed with a sharp two-day decline. NLNK actually displayed relative strength today (+3.3%), possibly due to the fact shares have already seen a massive correction lower.

The last several days have seen traders buying the dip near NLNK's rising 100-dma. Now the stock is poised for a breakout past short-term resistance near $30.00. I do consider this an aggressive, higher-risk trade. Tonight we're suggesting a trigger to open small bullish positions at $30.75. If triggered our target is $39.75.

Traders may want to use call options to limit their risk. Keep in mind the April options only have four weeks left.

Trigger @ 30.75 *small positions*

Suggested Position: buy NLNK stock @ (trigger)

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

Buy the Apr $35 call (NLNK1419D35) current ask $0.85

Annotated chart: