Editor's Note:

We will fill in our entry prices below for Monday's open on Feb. 28th.


Apache Corp. - APA - close: 123.53

Company Info

Why We Like It:
Bears could argue that oil prices are artificially high due to the risk premium built in thanks to the unrest across the Mideast. Unfortunately no one can tell us when this unrest and violence will end. The trend in oil and energy stocks could have a while to go before it runs out of steam. APA is attractive now that shares are just now breaking out from its recent consolidation.

I am suggesting bullish positions now with a stop loss at $114.75. Our long-term target is $143.50. FYI: The Point & Figure chart for APA is bullish with a $129 target.

- Suggested Positions -
Feb 28, 2011 - entry price on APA @ xx.xx, option @ x.xx
symbol: APA1221A140 2012 JAN $140 call - current bid/ask $ 7.80/ 8.00

- or -

Feb 28, 2011 - entry price on APA @ xx.xx, option @ x.xx
symbol: APA1319A140 2013 JAN $140 call - current bid/ask $12.55/15.15

Daily Chart of APA:

Weekly Chart of APA:

Current Target: $143.50
Current Stop loss: 114.75
Play Entered on: 02/28/11
Originally listed in the New Plays 02/26/11


Canadian Natl. Railway Co. - CNI - close: 71.92

Company Info

Why We Like It:
Rising oil prices are bad news for transports but if anyone is going to benefit it should be the railroads. Trains are the most efficient and offer the biggest bang for the buck when it comes to moving freight per gallon of fuel. Shares of CNI just broke out past resistance at $70.00 a few days ago and traders just bought the dip at this new support. I am suggesting bullish positions now on the bounce from $70.00. We'll start this play with a stop loss at $67.00. Our long-term target is $89.00.

- Suggested Positions -
Feb 28, 2011 - entry price on CNI @ xx.xx, option @ x.xx
symbol: CNI1221A80 2012 JAN $80 call - current bid/ask $ 2.55/ 2.80

Chart of CNI:

Current Target: $89.00
Current Stop loss: 67.00
Play Entered on: 02/28/11
Originally listed in the New Plays 02/26/11


Ford Motor Co - F - close: 15.07

Company Info

Why We Like It:
The late January and early February profit taking in Ford was pretty painful but shares had been overbought and due for a correction. Ford is probably the healthiest American auto maker as the company continues to reduce its debt. As the U.S. and global economies recover we will see an increase in vehicle sales (barring any disaster that sends oil toward $150 a barrel or higher). Right now is our chance to buy call LEAPS on Ford with the stock near its long-term trendline of higher lows. I am suggesting bullish positions now but if we're lucky we will see a dip toward $14.00 and its 200-dma.

I'm suggesting a stop loss at $12.40. Our long-term exit targets are $19.75 and $24.00.

- Suggested Positions -
Feb 28, 2011 - entry price on F @ xx.xx, option @ x.xx
symbol: F1221A15 2012 JAN $15 call - current bid/ask $ 2.04/ 2.08

- or -

Feb 28, 2011 - entry price on F @ xx.xx, option @ x.xx
symbol: F1319A20 2013 JAN $20 call - current bid/ask $ 1.44/ 1.50

Chart of F:

Current Target: $19.75, and $24.00
Current Stop loss: 12.40
Play Entered on: 02/28/11
Originally listed in the New Plays 02/26/11