NEW BULLISH Plays

Allegheny Technologies - ATI - close: 41.50 change: +0.61

Stop Loss: 39.95
Target(s): to be determined
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
ATI is in the industrial goods sector. The company makes specialty materials, mostly metals, steel, and alloys. The stock has already seen a big improvement after its post-earnings sell-off in January this year. ATI is starting to look like a momentum play. They just reported earnings on April 22nd that missed estimates. Revenues also came in below expectations yet traders quickly bought the post-earnings dip and now ATI is hitting new 52-week highs. That might be due to management's somewhat bullish outlook. ATI said the first quarter was tough but conditions were improving throughout the quarter and their backlog of business hit a two-year high at $1.8 billion.

Friday's high was $41.65. I am suggesting a trigger to open small bullish positions at $41.75. We will try and limit our risk with a stop loss at $39.95. More conservative investors may want to consider a stop closer to $40.60 instead.

Trigger @ $41.75 *small positions*

Suggested Position: buy ATI stock @ (trigger)

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

buy the Jul $40 call (ATI1419G40) current ask $2.80

Annotated chart:

Weekly chart:



Delta Air Lines - DAL - close: 37.23 change: +0.11

Stop Loss: 34.95
Target(s): to be determined
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 13.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
DAL is in the services sector. The company runs a major airline. Airlines as a group have been strong but DAL is leading the charge higher. They delivered strong Q1 results and provided optimistic Q2 guidance. They're seeing a steady increase in revenues while squeezing costs. They just recently announced that passengers flew 16.57 billion miles on DAL in April, that's +6.6% from April 2013.

Shares of DAL are on the verge of new all-time highs. I am suggesting a trigger to open small bullish positions at $37.65. I'm not setting a target yet but I will point out that DAL does have a trend line of higher highs. Short-term traders may want to exit at this trend line (see chart below).

Trigger @ $37.65

Suggested Position: current DAL stock @ (trigger)

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

Buy the Sept $40 call (DAL1420i40) current ask $2.16

Annotated chart:

Weekly chart: