Additional trading ideas:
Gold and silver were grabbing a lot of headlines today. Gold hit new all-time highs near $1,453 an ounce. Silver surged to new 31-year highs with silver around $38 an ounce. I have heard the argument that silver historically trades at 1/16th the price of gold, which would mean silver should be trading around $90 right now. I don't necessarily believe silver will get that high but the trend is up. Unfortunately, the action in silver is starting to look like a bubble. If you were interested in the silver trade I'd probably check out shares of Silver Wheaton Corp (SLW), which looks poised to breakout past resistance near $46.00. Readers should consider this a very aggressive and higher-risk trade since silver is so overbought and due for profit taking, which could happen at any time.
If you're looking for a bearish trade then check out Entergy Corp. (ETR). This company is the second largest nuclear generator of electricity in the U.S. The stock has sold off hard following the disaster in Japan. Now the oversold bounce is rolling over. Traders could open bearish positions on ETR with a stop loss near $68.75. I'd be tempted to target a drop toward the $61-60 area.
NEW BULLISH Plays
SAIC, Inc. - SAI - close: 17.31 change: +0.01
Stop Loss: 16.75
Current Gain/Loss: + 0.0%
Time Frame: 8 to 9 weeks
New Positions: Yes, see below
Why We Like It:
SAI is an I.T. and technical services company with one of its biggest customers is the U.S. government and U.S. military. It looks like investors are not worried about the massive spending cuts proposed in Washington will affect SAI's business. The stock continues to trek higher. I've mentioned it in my editor's note as a bullish candidate.
I am suggesting small bullish positions now. We do want to keep our position size small to limit our risk. Patient traders could wait for a dip closer to the $17.00 level, which could happen soon (but no guarantee that it will). I am suggesting a stop loss at $16.75. Our first bullish target is $18.40. Keep in mind that SAI does not move very fast. While the stock does have options I prefer the stock to avoid the time decay on the options.
I will list the August $18 calls for more aggressive traders.
-Open Small Bullish Positions Now-
Suggested Position: buy SAI stock @ current levels
- or -
Buy the August $18.00 call (SAI1120H18) current ask $0.55
Entry on April 6 at $xx.xx
Earnings Date 06/02/11 (unconfirmed)
Average Daily Volume: 2.4 million
Listed on April 5th, 2011