Good evening. Considering the news driven events this afternoon (see my comments in today's updates) and that OPEX is tomorrow we are not releasing new plays tonight. We plan to release several over the weekend and look forward to the August options cycle. There is one industry that is grabbing my attention to the long side and that is natural gas stocks. There was bullish inventory data released about natural gas today and stocks in this industry should follow, especially if there is broader market strength. I have provided two set-ups below that I like with relatively tight stops.
Long XEC: The stock is forming a bull flag above its 20-day and 50-day SMA's. It looks poised to retest its all-time highs near $80.00 which is about +6% higher than current levels. The stock has maintained a beautiful series of higher highs and higher lows since March of 2009.
Long APC: The stock is breaking out above its 50-day SMA and looks poised to fill a gap near $52.00 which is nearly +6% higher from current levels.