NEW BULLISH Plays
Aeropostale - ARO - close: 37.89 change: +1.49 stop: 35.95
Why We Like It:
I hate to suggest new bullish positions with the stock market this overbought but stocks can always get more overbought than you think. It wouldn't surprise me to see the market keep climbing the next few days, especially after today's close over 1,000 for the S&P 500 and 2,000 for the NASDAQ. We already have several bullish candidates to buy a dip but what if that dip doesn't come until next week?
Let's try a more aggressive trade. I'm suggesting we try small bullish positions on ARO. The stock has been showing relative strength and looks poised to breakout to new all-time highs. We'll try and limit our risk with a tight stop under today's low but we still want to use positions sizes at least half if not smaller than your normal trades. We'll take some money off the table at $39.95. Our final exit will be $42.00.
Entry on August 03 at $37.89
Change since picked: + 0.00
Earnings Date 08/20/09 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on August 01, 2009