NEW BULLISH Plays
Piper Jaffray Companies - PJC - close: 21.95 change: +0.67
Stop Loss: 20.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
The financial sector could rally significantly if we get positive headlines out of the EU on Friday. We like PJC because shares are already testing resistance near $22.00 and its 100-dma. A breakout past this area could create a sharp move higher.
I am suggesting a trigger to open positions at $22.55, which is just above the late October highs. There is potential resistance at $24.00 but we're setting our multi-week target at $25.75.
FYI: The Point & Figure chart for PJC is bullish with a $31.50 target.
I would keep position size small to limit our risk.
Trigger @ 22.55 (small positions)
Suggested Position: buy PJC stock @ $22.55
- or -
buy the Jan $22.50 call (PJC1221A22.5) ask $1.30
Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 207 thousand
Listed on December 07, 2011