Editor's Note:

I'm still seeing a lot of potential bullish candidates. Here's a handful that caught my eye today.

TIE - Metal-related stocks were big winners today and TIE just rallied past technical resistance at its 100 and 200-dma.

F - Ford still has a trend of higher lows and outperformed the market today.

AA - AA is another metal-related name that is nearing its early January highs. There is potential near $17.00-17.50 but once past its early 2010 highs AA has lots of room to move.

THO - This isn't a very fast moving stock but a move past resistance at $37.00 would be interesting.

OSG - This shipping stock has been hammered lower as shipping rates breakdown to new relative lows. However, if there was a spot to buy OSG at support then this could be it. OSG bounced from support near $32.00 yesterday. Traders could open a high-risk trade with a stop loss under $31.80 and look for an oversold bounce.

- James


NEW BULLISH Plays

Ann Taylor Stores Corp. - ANN - close: 22.06 change: +0.55

Stop Loss: 20.80
Target(s): 24.00, 25.00
Current Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I suspect the sell-off and correction in ANN could be nearing an end, or at least it's due for an oversold bounce. Shares have seen a 50% correction from the late summer ally and ANN has found technical support at its 200-dma near $21. Plus, the RLX retail index looks like it is ready to breakout higher from its current sideways consolidation and if that happens it could drag ANN higher. Having said all that I would still consider this an aggressive, higher-risk trade. ANN has definitely been underperforming the market.

I'm suggesting small bullish positions now with a stop under yesterday's low. Our first target is $24.00.

FYI: Just because the calls are cheap doesn't mean you should over due it. Keep your position size small.

Small Bullish Positions - now at current levels

Suggested Position: ANN stock @ current levels

- or -

Buy the 2011 February $24 calls (ANN1119B24) current ask $0.35

Annotated chart:

Entry on January 27 at $xx.xx
Earnings Date 03/11/11 (unconfirmed)
Average Daily Volume: 2.5 million
Listed on January 26th, 2010


Oracle Corp. - ORCL - close: 32.56 change: +0.27

Stop Loss: 31.40
Target(s): 34.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market is marching to new two-year highs and big cap stocks are leading the way. ORCL has broken out to new multi-year highs and after a four-week consolidation under the $32 level, shares look rested and ready for another leg higher.

I am suggesting small bullish positions now. We want to keep positions small because I'm still concerned the market could roll over in the next couple of weeks. Our target on ORCL is the $34.90 mark since $35.00 looks like the next level of resistance.

small positions now at current levels

Suggested Position: ORCL stock @ current levels

- or -

Buy the 2011 March $33 calls (ORCL1119C33) current ask $0.86

Annotated chart:

Entry on January 27 at $xx.xx
Earnings Date 03/24/11 (unconfirmed)
Average Daily Volume: 27 million
Listed on January 26th, 2010