Additional Trading Ideas:
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
CAR, PTEN, HUBG, USM, TPC, RIG, , PBR, TTM, LPI, LAZ,
ESI, GWRE, WUBA, SWI, BLOX, VJET, SFLY, NDLS, CA, CUDA, TDC, FUEL, NSM, AMWD,
NEW BULLISH Plays
Six Flags Entertainment - SIX - close: 41.14 change: +0.96
Stop Loss: 38.90
Current Gain/Loss: unopened
Entry on May -- at $--.--
Listed on May 07, 2014
Time Frame: 9 to 12 weeks
Average Daily Volume = 807 thousand
New Positions: Yes, see below
Why We Like It:
SIX is in the services sector. The company operates regional theme parks, water parks, and zoological parks. The weather is warming up and investors could be thinking of summer. Shares of SIX certainly look poised to hit summer on an up swing.
The company's latest earnings report was lukewarm. Management blamed the late Easter holiday, which affected when schools scheduled their spring breaks. The market seemed happy with this explanation and shares didn't see much impact from the earnings report.
The long-term trend for SIX is bullish and the stock provides a 4.7% dividend yield. On a short-term basis SIX has been consolidating sideways for about three weeks and just broke through some resistance levels today.
We want to see a little bit more follow through. The early April high was $41.26. I am suggesting a trigger to open bullish positions at $41.50. If triggered our multi-week, potentially multi-month target is $49.00.
The Point & Figure chart for SIX is bullish with a $48.00 target.
Trigger @ $41.50
Suggested Position: buy SIX stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the Sep $40 call (SIX1420i40) current ask $2.50