Wednesday Morning

Gator's Chart of the Day: JDSU

We are late to this trade but it still has potential.  JDSU reports after market on Aug 14th and I would not want to hold through that event.  I've seen them disappoint and it's not pretty.  They have a good balance sheet and the P/E is a reasonable 13.  They have a good piece of the internet growth business and that is not going to slow with the continuing demands for bandwidth.

The Trade
Ideally we will see a small pullback to the 50 day and then a bounce that should be bought.  The trade will last a week at most so the position should be built as quickly as is practical.  Don't force it but this will necessarily be aggressive.  Assuming the entry is near 10 a stop just below the 20 day should keep the risk under 6% and with a target of 11.60ish (200 day) the risk/reward is not as sweet as I like.  Finviz has a target price of 14.03 but I doubt that level is reached in this time frame.