In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:
ACT, BWLD, UHS, BA,
DE, BRCM, ULTA, FFIV, ROSE, EXPE, SBAC,
NEW DIRECTIONAL CALL PLAYS
The Fresh Market, Inc. - TFM - close: 51.87 change: -0.21
Stop Loss: 49.75
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
TFM is a specialty grocery store. Many compare them to Whole Foods (WFM) since both tend to sell high-end, more expensive products. Shares of TFM have seen some volatility in recent weeks. The big spike higher in late May was a reaction to the company's earnings report. Chart readers will notice that traders have been buying the dips in TFM near its rising 10-dma. Technically the recent breakout past $50 and its 200-dma is also bullish. If this trend continues TFM could see more short covering. The most recent data listed short interest at 13.9% of the small 40 million share float.
The simple 10-dma is currently at $50.60. I suspect we're going to see TFM retesting this moving average soon. Tonight I am suggesting a buy-the-dip trigger to buy calls when TFM hits $50.75. If triggered we will try and limit our risk with a stop loss at $49.75. Our upside target is $54.75.
FYI: The Point & Figure chart for TFM is bullish with a long-term $85 target.
Trigger @ 50.75
- Suggested Positions -
Buy the Jul $50 call (TFM1320G50) current ask $3.30
Entry on June -- at $---.--
Average Daily Volume = 741 thousand
Listed on June 11, 2013