Editor's Note:

Once again I am urging readers to be cautious here. Stocks are having difficulty with their oversold bounce from support. This sideways choppiness is evidence of investor confusion as the market tries to sort out all of the ramifications of China trying to slow its economy, the rebound in Europe stalling, the European debt crisis with Greece and similar countries, and some truly lackluster economic data out of the U.S.

Sometimes the best trade is no trade at all. It's okay to sit back and wait. There is always another opportunity. On a very short-term basis the stock market acts like it wants to trade higher. However, I want to point out that this could very easily be a bear-flag formation that will eventually breakdown into a new leg lower.

I am suggesting some bullish candidates today but they're all very aggressive trades. I would use small positions to limit your risk if you trade them at all.


NEW BULLISH Plays

DSW Inc. - DSW - close: 27.26 change: +0.04 stop: 25.75

Why We Like It:
DSW operates a chain of shoe stores. After the stock clearly broke support back in January there was no follow through. Traders have been slowly buying the dips and now DSW is back to challenging its 2009 highs. This relative strength is pretty impressive. The December high was $27.44. I am suggesting readers use a trigger to buy DSW at $27.60. If triggered our first target is $29.95. Remember, keep your positions small to limit risk.

Annotated chart:

Entry on  February xx at $xx.xx <-- TRIGGER @ 27.60 (small positions)
Change since picked:     + 0.00   			
Earnings Date          03/24/10 (unconfirmed)    
Average Daily Volume:       416 thousand
Listed on  February 13, 2009    


ROSS Stores - ROST - close: 46.43 change: +0.23 stop: 44.85

Why We Like It:
Shares of ROST are showing relative strength. I wish I could tell you why. Their earnings results always seem to be inline with expectations. For some reason investors keep buying the dips. In the last couple of days the stock has broken out from a sideways consolidation. The stock is outperforming its peers in the retail sector and the broader market.

I'm suggesting we jump on board but with small positions to limit our risk. The 30-dma has been support the last few days (currently near 45.25). I'm suggesting a stop loss at $44.85. Our target to exit is $49.75. It could take a few weeks to get there.

Annotated chart:

Entry on  February 13 at $46.43 
Change since picked:     + 0.00   			
Earnings Date          03/18/10 (unconfirmed)    
Average Daily Volume:       2.4 million 
Listed on  February 13, 2009