NEW BULLISH Plays

Oil Services ETF - OIH - close: 55.16 change: +0.37

Stop Loss: 53.60
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on August -- at $---.--
Listed on August 30, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 3.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
The Market Vectors Oil Services ETF (exchange traded fund) tries to mimic the Market Vectors US Listed Oil Services 25 index. The top ten holdings for this ETF are SLB, HAL, NOV, CAM, BHI, SDRL, WFT, ESV.L, RIG, and HP. SLB and HAL are by far the biggest two components.

A multi-week decline in the price of crude oil has not stymied the industry's interest in drilling. The number of oil rigs in the U.S. hit an all-time record of 1,588 rigs about two weeks ago. That's the highest number since Baker Hughes started counting back in 1987.

Meanwhile crude oil prices appear to peak in late June this year but after a two-month decline oil is starting to rebound. As geopolitical tensions continue to rise in the Middle East (with ISIS growing in Iraq and Syria) and tensions with Russia and Ukraine, it could put a floor under energy prices, especially as we get closer to winter. Oil tends to show strength in the fall.

Technically the OIH produced a correction from its July highs but has started to bounce after a 38.2% Fibonacci retracement (shown on the weekly chart below). Tonight we're suggesting a trigger to open bullish positions at $55.75, which is just above the simple 50-dma.

The $58.00 level is short-term resistance but our long-term target is higher. Currently the point & figure chart is forecasting at $61 target.

Trigger @ $55.75

- Suggested Positions -

Buy the OIH ETF @ (trigger)

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

Buy the 2015 Jan $60 call (OIH150117C60) current ask $0.55

Option Format: symbol-year-month-day-call-strike

Annotated Chart:

Weekly Chart:


Tekmira Pharmaceuticals - TKMR - close: 21.40 change: +0.64

Stop Loss: 19.70
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on August -- at $---.--
Listed on August 30, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 7.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
Biotech stocks have been some of the market's best performers this year. The BTK biotech index is up +34.3% year to date. The IBB biotech index is up +21.8%. Big name players like GILD and their $84,000 Sovaldi cure for hepatitis C has captured the imagination for investors. Meanwhile another story is making big waves in the biotech industry and that is the world's worst outbreak of Ebola.

Ebola is an extremely deadly virus. The virus is one of several Viral Hemorrhagic Fevers. According to the CDC, this virus was discovered back in 1976 "in what is now the Democratic Republic of the Congo, near the Ebola River." There are a handful of subspecies of the virus, which can have a 50% to 90% fatality rate. There is no known effective cure. Another challenge is the time frame. A person can be infected for eight to 21 days without showing any symptoms. Once they start showing symptoms they become contagious. Unfortunately, the early symptoms are pretty common like headaches, sore throat, a fever, muscle soreness.

Right now four countries in Africa are facing a serious crisis. Guinea, Liberia, Nigeria, and Sierra Leone have all reported deaths from the current outbreak that has killed over 1,750 confirmed cases and suspected cases of more than 3,000. The U.N. just warned that the outbreak is accelerating beyond control and cases could surge to more than 20,000. TKMR has been getting a lot of trader attention because the company is working on a potential Ebola treatment.

According to the company website, "Tekmira Pharmaceuticals Corporation is a leading RNA interference (RNAi) therapeutics company. With more than 14 years of industry experience, Tekmira is a global leader in the RNAi field. We are developing novel drugs in areas where there is a significant unmet medical need and commercial opportunity. We also license our leading lipid nanoparticle (LNP) delivery technology to partners around the world."

Right now investors are looking at TKMR for its potential Ebola drug (TKM-Ebola). In March this year the U.S. FDA gave TKM-Ebola fast track status to develop and test this new treatment. TKMR has cautioned that this is still in development and they want to work with W.H.O. and the F.D.A. and the emergency labs currently working to develop some kind of treatment for the African Ebola Outbreak. It could be weeks or months before we know more.

As traders we should consider this an aggressive, higher-risk trade due to TKMR's volatility and the nature of headline risk.

The stock bounced near round-number support in the $20.00 area on Friday. Aggressive investors may want to jump in right now at current levels. We're suggesting a trigger to open small bullish positions at $22.30, just above last week's high.

Trigger @ $22.30 *small positions*

(this is an aggressive trade)

- Suggested Positions -

Buy TKMR stock @ $22.30

Annotated Chart:

60-minute Chart: