NEW BULLISH Plays

Hewlett-Packard Co. - HPQ - close: 32.70 change: +0.06

Stop Loss: 31.55
Target(s): to be determined
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 14.0 million
New Positions: Yes, see below

Company Description

Why We Like It:
HPQ is in the technology sector. They used to be a computer hardware company. Now they're in the middle of a multi-year revival. They still make PCs and servers but they're also moving into cloud computing, security, and data.

The stock has been showing relative strength in recent weeks until it hit a trend line of higher highs in early April. Now it's seeing a minor pullback to the 10-dma. Shares were showing some relative strength today. Assuming the market doesn't crash we think HPQ can outperform.

Tonight we're suggesting a trigger to open bullish positions at $33.15. If triggered we'll start with a stop loss at $31.55. Plan on exiting prior to HPQ's earnings report in late May.

Trigger @ $33.15

Suggested Position: buy HPQ stock @ (trigger)

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

Buy the May $33 call (HPQ1417E33) current ask $1.03

Annotated chart:



NEW BEARISH Plays

Apollo Education Group - APOL - close: 30.15 change: -1.71

Stop Loss: 31.85
Target(s): to be determined
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 07, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
APOL is in the services sector. They are in the online and on-campus education industry for undergraduates, masters, and doctoral levels. The for-profit education stocks have had a rough time over the last several years. Unfortunately for APOL, its recent peak in January 2014 looks like another lower high in a long line of lower highs.

The company reported earnings a few days ago. They beat bottom line estimates by 9 cents but a -18.6% drop in revenues caused them to miss the revenue estimate. More importantly investors were unhappy to hear that enrollments had fallen -16% from a year ago.

APOL is now testing round-number support at $30.00. I am suggesting a trigger to open bearish positions at $29.85. We're not setting a target yet but probably in the $26-25 zone. The P&F chart for APOL is bearish with a $26 target.

Investors may want to use small positions to limit their risk. The most recent data listed short interest at 14% of the 98.2 million share float.

Trigger @ 29.85

Suggested Position: short APOL stock @ (trigger)

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

Buy the May $30 PUT (APOL1417Q30) current ask $1.35

Annotated chart:

Weekly chart: