Editor's Note:

FYI: The market is only open half a day on Monday (closes at 1:00 p.m. ET) and the U.S. markets are closed on Tuesday for the Christmas holiday. We will not be publishing any updates on Monday or Tuesday.

From our family to yours, we wish you a Merry Christmas.
See you on Wednesday, December 26th.



NEW DIRECTIONAL CALL PLAYS

Akamai Tech. - AKAM - close: 41.76 change: -0.10

Stop Loss: 39.95
Target(s): 44.90
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It was a bullish week for shares of AKAM. The stock broke out past major resistance near the $40.00 level. Traders bought the dip near the $40 level, now new support, on Friday morning. Readers may want to launch positions now. I am suggesting we wait for a little follow through and use a trigger to buy calls at $42.05. If triggered our target is $44.90. More aggressive traders could aim higher. FYI: The Point & Figure chart for AKAM is bullish with a $54 target.

Trigger @ 42.05

- Suggested Positions -

buy the 2013 Jan $45 call (AKAM1319a45) current ask $0.38

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 3.1 million
Listed on December 22, 2012


3D Systems - DDD - close: 51.92 change: +0.41

Stop Loss: 48.95
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Looking back over 2012 I can recall reading multiple articles suggesting that we are at the dawn of a new age of 3-D computer printing. The cost of printers has already fallen toward the $1,500 level (last time I looked), which is not costly and opens the door for a much larger market of potential buyers for this technology. I did just check and the basic starter printer is around $1,500 with nicer printers in the $4K to $5K range. I'm sure they go up from there.

Looking at DDD's stock price it would seem that investors have a bullish outlook for the industry as well. The stock has rallied to new record highs. Traders just bought the dip on Friday morning. I am suggesting we wait for a little confirmation and use a trigger to buy calls at $52.25. If triggered our target is $58.50. FYI: The Point & Figure chart for DDD is bullish with a $74 target.

Trigger @ 52.25

- Suggested Positions -

buy the FEB $55 call (DDD1316b55) current ask $2.60

Annotated Chart:

Entry on December xx at $ xx.xx
Average Daily Volume = 1.9 million
Listed on December 22, 2012