NEW BULLISH Plays
Morgan Stanley - MS - close: 34.55 change: +0.24
Stop Loss: 32.95
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on September -- at $---.--
Listed on September 02, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 6.8 million
New Positions: Yes, see below
Why We Like It:
MS is in the financial sector. They're one of the biggest players in the financial services industry. The stock has been outperforming its peers by a significant margin. Citigroup (C) is still down -0.8% for 2014. Goldman Sachs (GS) is only up +1.0%. JP Morgan (JPM) is up +1.6% and BAC is up +3.3% in 2014. The XLF financial ETF is up +6.8% year to date. Yet MS is up +9.4%.
The company has managed to build its revenues on stronger wealth management business. The company has beaten Wall Street's earnings estimates four quarters in a row.
Their most recent earnings report was July 17th. Analysts were expecting a profit of 55 cents a share on revenues of $8.18 billion. MS delivered $0.60 a share with revenues coming in at $8.61 billion. The company's profit has more than doubled from a year ago.
The stock has spent months consolidating sideways under resistance near $33.50. This past month has seen a bullish breakout higher. Now broken resistance near $33.50 should be new support.
MS is currently testing short-term resistance near $34.50.
Tonight we're suggesting a trigger to open bullish positions at $34.75.
Trigger @ $34.75
- Suggested Positions -
Buy MS stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the 2015 Jan $35 call (MS150117C25) current ask $1.61
Option Format: symbol-year-month-day-call-strike