Editor's Note:

Strength in the transports has been and will be a key sector to help lead and support this market's new rally attempt. We're adding a couple of bullish candidates in this sector.


NEW BULLISH Plays

Kansas City Southern - KSU - close: 30.90 chg: +1.29 stop: 28.20

Why We Like It:
We usually try to avoid chasing a big move but today's 4.3% rally in KSU is also a significant breakout past resistance at the $30.00 level. This move also follows an inverse (bullish) H&S pattern. I am suggesting bullish positions now with a stop loss at $28.20. More patient traders could wait for a dip back toward $30.00, which should be new support. Or try buying a portion of your position now and then add to it on a dip near $30.00. Our target is $34.90.

Annotated chart:

Entry on  December 14 at $30.90 
Change since picked:     + 0.00   			
Earnings Date          01/28/10 (unconfirmed)    
Average Daily Volume:       677 thousand
Listed on  December 14, 2009    


United Parcel Service - UPS - close: 58.99 change: +0.98 stop: 56.95

Why We Like It:
Shares of UPS have been lagging behind their rival FDX and the rest of the transportation sector. I suspect that UPS will try and "catch up" to its peers. Today's rally is a bullish breakout from a multi-week trading range. We want to open positions now. We'll use a tight stop at $56.95. Readers may want to use small positions now and just add to it when UPS makes it past potential resistance at $60.00. Our target is $64.50.

Annotated chart:

Entry on  December 14 at $58.99 
Change since picked:     + 0.00   			
Earnings Date          02/02/10 (unconfirmed)    
Average Daily Volume:       4.2 million 
Listed on  December 14, 2009