A few more stocks that caught my eye tonight are:
TSO, SCOR, VRNT, TTWO, DRIV, VMED, MSCC, and CSCO
Most of these need to break through overhead resistance first!
NEW BULLISH Plays
SodaStream Intl. - SODA - close: 40.88 change: +2.02
Stop Loss: 37.49
Target(s): 45.75, 49.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see trigger
Why We Like It:
Expectations were just a little too optimistic for SODA when they reported earnings back in early August. Earnings were better than expected but the market was unhappy with SODA's revenue growth. The stock was crushed for a huge loss. It didn't help that the market was in sell-off mode too. Shares eventually fell from their bearish double top near $80 to building a new bottom in the $32-34 area. Now the stock is finally beginning to build on its bounce and the Point & Figure chart has turned bullish with a $49 target.
If the rally continues then SODA could see a huge short squeeze. The most recent data listed short interest at more than 75% of the very, very small 14.6 million-share float.
I have to warn you. This is a volatile stock. I am suggesting we open small bullish positions now but only if SODA and the S&P 500 index both open positive tomorrow morning (Friday). If triggered we'll use a stop loss just under today's low, which was 37.70. Our first target is $45.75 and our second target is $49.75. More conservative traders may want to avoid this trade or take profits earlier.
Remember, we want to use small positions to limit our risk.
open bullish positions if SODA and S&P500 index both open positive tomorrow (small positions only)
Suggested Position: buy SODA @ the open
- or -
buy the OCT $45 call (SODA1122J45) current ask $3.30
Entry on September xx at $ xx.xx
Earnings Date 11/29/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 8, 2011