Editor's Note:
We've got two new candidates tonight. I'd like to build up the PI newsletter so we're always carrying 12 to 15 active candidates (not just candidates waiting to be triggered). That's going to be tricky, especially right now since we don't want to chase new highs. However, to actually carry that many trades we might be making some format changes in the play updates and new plays section of the newsletter. I wanted to let you know now so you can bear with me as we find the right mix and layout. Please note I'm listing some additional ideas here in the editor's note.

-James

Additional Trading Ideas:

CVS - This stock appears to be building a bull-flag pattern. A move over $31.75 might be a bullish entry point.
DIS - The house of mouse looks strong following the breakout from its big consolidation. I'd watch for a dip back toward $36.00.
FWLT - Shares of FWLT have broken through multiple layers of resistance. We don't want to chase it. Look for a dip back toward $26.00 or its 200-dma as a bullish entry point.
HD - We can wait for a close over $32.25 or we can look for another bounce from $31.00 as a potential bullish entry point.
JSDA - I can very close to adding JSDA as an active candidate tonight, especially seeing how the stock looks poised to rocket higher from its four-week consolidation. However, earnings for JSDA are Nov. 11th and I don't want to hold over the report.
MSFT - This tech giant looks ready to correct. I would use a dip near $26.00 as a bullish entry point.


NEW BULLISH Plays

Alcoa Inc - AA - close: 14.00 change: +0.40

Stop Loss: 12.75
Target(s): 14.95, 15.95
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description:
Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world (source: company press release or website)

Why We Like It:
Commodity and resource names have been surging on dollar weakness. While the dollar could se some short-term spikes higher the dollar weakness trend should continue long-term. That's bullish for AA. The stock just broke out from a three-week consolidation. We don't want to chase it here. I'm suggesting a trigger to buy AA on the dip at $13.50. We'll use a stop at $12.75.

Suggested Position: Buy AA stock @ 13.50

Annotated chart:

Entry on November xx at $xx.xx
Earnings Date 01/10/11 (unconfirmed)
Average Daily Volume: 26.1 million
Listed on November 6th, 2010


NYSE Euronext - NYX - close: 30.79 change: +0.50

Stop Loss: 29.40
Target(s): 34.50
Current Option Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description:
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets – the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca – represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500 (source: company press release or website)

Why We Like It:
After five months it looks like shares of NYX are finally ready to breakout over resistance near $31.00. The stock has a steady trend of higher lows. Hopefully, now that the summer is over, elections are over, and the QE news it out, we should see a pick up in trading volumes.

I am suggesting a trigger to buy NYX stock at $31.25. If triggered our first target is $34.50. FYI: The Point & Figure chart is bullish with a $40 target.

Trigger @ 31.25

Suggested Position: Buy NYX stock @ 31.25

Annotated chart:

Entry on November xx at $xx.xx
Earnings Date 02/09/11 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on November 6th, 2010