Molina Healthcare - MOH - close: 38.14 change: +0.56

Stop Loss: 37.40
Target(s): 42.00
Current Gain/Loss: unopened

Entry on May -- at $--.--
Listed on May 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 660 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
MOH is in the healthcare industry. When the company reported earnings in late April the results were significantly above expectations. Plus, management raised their 2013 guidance. Since then MOH has broken out past resistance near $34.00. Following this bullish breakout higher MOH has seen something of a short squeeze since the most recent data listed short interest at almost 18% of the very small 28.4 million-share float.

Today the market appeared to be reversing lower and yet MOH managed to rally off its 10-dma to tag a new all-time high. This relative strength could start another panic in the shorts.

I am suggesting small bullish positions if MOH can trade at $38.60 or higher. If triggered our target is $42.00. I want to repeat that we are suggesting small positions. If the broader market continues lower we could see MOH reverse.

Trigger @ 38.60 *Small Positions*

Suggested Position: buy MOH stock @ (the trigger)

Annotated chart: