Currently stocks look poised to drop again tomorrow but I wouldn't be surprised to see an oversold bounce begin before the closing bell.
Nimble traders could take advantage of this market turmoil. Focus on your favorite high-flying stocks that you've always wanted an entry point in.
NEW BULLISH Plays
Alexion Pharmaceuticals - ALXN - close: 48.05 change: -2.65
Stop Loss: 43.75
Target(s): 49.75, 53.75
Current Gain/Loss: unopened
Time Frame: 2 to 5 weeks
New Positions: see below
Why We Like It:
ALXN is a biopharmaceuticals company. It's stock was setting new all-time highs prior to the market's sell-off that began two weeks ago. Selling pressure is pushing ALXN back toward its June lows, which should be significant support. The stock is also nearing technical support at its rising 200-dma.
I am suggesting we launch small bullish positions on a dip at $45.50. If triggered we'll use a stop loss at $43.75.
open SMALL bullish positions at $45.50
Suggested Position: ALXN stock @ $45.50
- or -
buy the SEP $50 call (ALXN1117I50)
Entry on August xx at $ xx.xx
Earnings Date 10/20/11 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on August 8, 2011