We are listing a couple of bullish candidates tonight but readers should be cautious here. The S&P 500 is still sitting at resistance (remember yesterday's chart). Then again you could argue the lack of any real profit taking on yesterday's rally is positive. I would not be in a rush to open new trades and if you do I would keep positions small.
P.S. don't forget that December calls expire in about two weeks!
NEW BULLISH Plays
MAKO Surgical - MAKO - close: 30.04 change: +1.24
Stop Loss: 27.90
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks
New Positions: Yes, see below
Why We Like It:
After a five-week fall from new highs, shares of MAKO seemed to hit bottom on Nov. 21st. The stock has been consolidating sideways in the $28-30 zone, near its simple and exponential 200-dma, for the last several days. This is starting to look like a potential bottom, which is bad news for the bears and there seem to be a lot of bears.
MAKO isn't turning a profit yet but the long-term outlook seems tempting giving the aging baby-boomer population and MAKO's position in the knee and hip replacement industry. I suspect that MAKO could see a short squeeze higher if the stock can breakout of this trading range.
The most recent data listed short interest at 38% of MAKO's small 32.1 million share float.
We are suggesting a trigger to open bullish positions at $30.55. I do see potential resistance at $31.00 and at $35.00 but we are setting our multi-week target at $37.50.
Trigger @ $30.55
Suggested Position: buy MAKO stock @ 30.55
- or -
buy the 2012Jan $35 call (MAKO1221A35) current ask $1.00
Entry on December xx at $ xx.xx
Earnings Date 03/01/12 (unconfirmed)
Average Daily Volume = 1.1 million
Listed on December 01, 2011