Friday, February 10, 2012

Friday Evening Thread

It's the weekend.  Cut loose.

Afternoon Thread

BWLD. Daily chart. New channel. Not same as the old channel. March Madness coming to a location near you. (position long a little common)

Morning Thread

Gator's Chart of the Day: FTNT
With the wide acceptance and accelerating deployment of "cloud services" security has become a very hot area.  Every week it seems we see reports of another company or government site being hacked.

"Fortinet, Inc., together with its subsidiaries, provides network security appliances and unified threat management (UTM) network security solutions to enterprises, service providers, and government entities worldwide. Its primary UTM solution consists of FortiGate appliance products that provide a range of security and networking functions, including firewall, VPN, antivirus, intrusion prevention, application control, Web filtering, antispam, wireless controller, and WAN acceleration." ... from Finviz

The company reported earnings last week (see the gap up) and even though the forward P/E is 41 the stock has held the gap.  The small pullback to the top of the gap was on much lower volume than before or after the report.  Now we have two up days on increasing volume and the stock took out the closing highs of Nov/Dec.  I think it goes higher.

The Plan
I took a starter position today in Mar28 calls @ 1.05.  I will add on either of two conditions (1) the stock trades above 26.42 or (2) it pulls back to the top of the gap and bounces.  If the stock falls back into the gap by more than a few pennies I will sell the position.