Editor's Note:

Bullish candidates were easy to find today but most of them are starting to look a little overbought. Here's a short list you'll want to keep an eye on:

CSX - This railroad stock is breaking out to new highs for the year. A dip near $46.00 might be a new entry point.

DRQ - This oil service stock looks like a candidate now but I'd prefer to buy a dip near $45-44.

WAT - Shares have broken out from a two-month consolidation. Look for the stock to retest resistance at support near $53.00.

MGM - This casino stock has been soaring on rising volume. We don't want to chase it so wait for a correction.

INT - The pattern here is very bullish but INT has resistance near $50.00. Wait for the breakout.


NEW BULLISH Plays

Changyou.com Ltd - CYOU - close: 41.69 change: +1.16 stop: 38.80

Why We Like It:
CYOU develops online video games for the Chinese market. The stock began trading in the U.S. back in April. Now after a six-week sideways consolidation the stock has broken out above resistance at $40.00. Today's bounce from the $40.00 mark looks like a new bullish entry point. I'm suggesting long positions now with a stop at $38.80. More conservative traders could use a stop closer to the 50-dma or the $40.00 level. Our first target is $45.75.

Annotated chart:

Entry on September 10 at $41.69 
Change since picked:     + 0.00   			
Earnings Date          10/26/09 (unconfirmed)    
Average Daily Volume:       408 thousand
Listed on September 10, 2009    


Rockwell Automation - ROK - close: 43.15 change: +0.96 stop: 39.95

Why We Like It:
ROK is breaking out from its multi-week consolidation. Technicals are turning bullish again. The stock has short-term support at $40.00 and just closed above resistance at $42.50. I'm suggesting bullish positions now. Our first target is the $49.00 mark. Our time frame is several weeks. FYI: The Point & Figure chart is bullish with a $61 target.

Annotated chart:

Entry on September 10 at $43.15 
Change since picked:     + 0.00   			
Earnings Date          11/10/09 (unconfirmed)    
Average Daily Volume:       1.4 million 
Listed on September 10, 2009