Add STP and CTRP Calls
Plus: Keep Watching DV
PLAY: Buy the STP February 18 Calls (STP BR) at or under $1.35, good for the day. Place a protective stop limit at $0.80 and a pre-determined sniper sell at $2.50.
PLAY: Buy the CTRP February 75 Calls (QCT BO) at or under $5.30, good for the day. Place a protective stop limit at $3.10 and a pre-determined sniper sell at $7.70.
Dear Bottarelli Research Member,
Good morning. As I mentioned yesterday, shares of DeVry (DV – NYSE) have been exhibiting bearish tendencies and we were simply waiting for the right signal to enter into a new round of puts. Case in point, the stock was down in the midst of yesterday’s 155-point rally. This shows internal weakness. As I write this morning, we’re waiting for DV to dip below the $56.00 threshold. When this occurs, it’ll officially trigger our downside signal. Until that happens, let’s be patient and wait for the right time to move into puts. We’re getting close.
In the meantime, we have two plays we can capitalize on right now. You see, one sector that’s looking promising is solar energy. I get the sense that fund managers are getting themselves repositioned in this sector for a strong 2010, which is why there is strong volume today on Chinese solar firm Suntech Power Holdings (STP – NYSE).
From a chart perspective, STP has some slight resistance barriers around the $18.00 level, but if the momentum takes it above this threshold, it could really start to move. The weekly chart shows you how much potential lies in STP. As you can see below, a run up to $30.00 is not out of the question. Therefore, let’s get positioned to ride this move now!
PLAY: Buy the STP February 18 Calls (STP BR) at or under $1.35, good for the day. Place a protective stop limit at $0.80 and a pre-determined sniper sell at $2.50.
Another strong chart formation catching my attention today comes from Chinese travel company Ctrip.com International (CTRP – NASDAQ). As you probably know, the 2009 move that we witnessed in U.S. online travel firm Priceline.com (PCLN – NASDAQ) blew my britches straight off. As you can see below, PCLN has been a pure rocket ship.
And here’s the thing: CTRP is the closest thing you have to the Chinese-equivalent of PCLN. In other words, the online travel sector is red hot, and I’d like to take full advantage. Let’s add CTRP calls to our ledger as well.
PLAY: Buy the CTRP February 75 Calls (QCT BO) at or under $5.30, good for the day. Place a protective stop limit at $3.10 and a pre-determined sniper sell at $7.70.
And as always…
Lock and load!
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.
Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.
CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.