Possible Momentum Plays
We’re looking at a pair of stocks this morning that have broken out, and that we’d like to monitor on the chance that they produce sustained uptrends.
Leading Brands, Inc. LBIX – This was a fairly illiquid stock until just recently, when it broke out of a mundane pattern of low volatility and began a run into blue skies which lasted from Tuesday through Friday. We’ll stay wary of the possibility for course corrections, but a dip-and-rip scenario could definitely come into play here in coming sessions. The volatility has ramped up in a huge way, which is what we always look out for as swing traders.
______
22nd Century Group Inc. XXII – In the case of XXII, the stock has traded in a fairly predictable pattern over the past few months, during which time it has formed a solid upward channel. The company also recently closed a $54M direct offering at 2.65/share. We’ll look for this one to continue to build, keeping an eye on it as we kick off a new trading week.
Walt Disney Co. DIS – Options Ideas
We also want to signal a couple of options ideas for Disney, which has a pretty nice bottom setup on the chart, trading near its lowest per-share pricing since December.
For a near-term idea, we’re going to be looking at the DIS Weekly $96-98 Calls and the DIS 11/24 $98-99 Calls in the event of an extended recovery, which seems due at any time now.
Extended Watchlist:
ABEO, CARA, CLSN, NETE, TRXC, RT, IBIO