MAS (Long)...

Check it out. It's a non-tech long pick, but it's still an early cycle play. MAS is today's pick. They reported earnings this week and had a monster move today. MAS is way too extended to be chasing it right now, but on a little consolidation, this is one to watch. Ideally, it pulls back and fills the gap created today, which would put it in the $11 range. This would be the best buying setup, but we may not get that.



But, wait, there's more. We're going to look at the five-year weekly chart of MAS, too. And you'll see why I'm liking this one.



Do you see what I see? It's a textbook head and shoulders bottom. MAS bottomed out at around $3.50 in March and the neckline is around $11.50 or so. With this, the measured move is $11.50 + ($11.50-$3.50) = $19.50. The neckline is green and the target is purple. Also, notice how the target corresponds quite nicely with the last set of highs. Given that the pattern took about a year to form, we'll need to give it about that time to reach that target. I'm looking to take some calls and then turn those into call spreads as I wait for this move to play out.

Position: none