Macy's Inc. - M - close: 28.15 change: +0.13

Stop Loss: 27.45
Target(s): 29.90, 32.25
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Over the next few days the stock market might rally on end of quarter window dressing. Macy's is already up +16% for the quarter and could garner more attention from money managers looking to dress up their portfolio. I consider this somewhat of an aggressive trade since my market bias is still not bullish. Of course stocks could bounce for several days before resuming their downtrend. We want to keep our M positions small to limit our risk. Plus, I'm using a tight stop loss at $27.45 to really reduce our exposure. if M doesn't continue to bounce we will quickly get stopped out. Aggressive traders will want to consider a wider stop loss.

- small positions -

Suggested Position: buy M stock @ current levels

- or -

Buy the July $29 call (M1116G29) current ask $0.48

- or -

(a bit longer-term)
buy the Aug. $30 call (M1120H30) current ask $0.78

Annotated chart:

Entry on June 28 at $xx.xx
Earnings Date 08/10/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on June 27, 2011