Editor's Note:

In addition to tonight's new candidates there were several additional stocks that caught my attention. Be sure to check for potential earnings dates on any your are interested in. Some of these need to see a breakout past resistance while other need to see a pull back. On my watch list tonight are: URS, VRTX, CMCSA, ALE, KSU, BAGL, BAC, and then with earnings this week: LTM, SKX, and ROC.

- James


NEW BULLISH Plays

Garmin Ltd. - GRMN - close: 33.08 change: +0.50

Stop Loss: 31.65
Target(s): 35.95
Current Gain/Loss: + 0.0%
Time Frame: six trading days
New Positions: Yes, see below

Company Description

Why We Like It:
GRMN is a long way from its heyday near $125 a share but the stock is slowly building a bullish trend. GRMN just broke out from its trading range this past week. I am suggesting small bullish positions now. Odds are good GRMN will see a dip back toward the $32.50-32.00 zone, which nimble traders could use to add to positions. Keep in mind that this is a very short-term trade. GRMN is due to report earnings on Feb. 23rd and we do not want to hold over the report. Given the recent strength GRMN could see a short squeeze or at least some short covering. The most recent data listed short interest at 19% of the 106 million-share float.

FYI: The Point & Figure chart for GRMN is bullish with a $49 target.

Open Small Positions now.

Suggested Position: Buy GRMN stock @ current levels

- or -

Buy the March $34 calls (GRMN1119C34) current ask $1.26

Annotated chart:

Entry on February 14 at $xx.xx
Earnings Date 02/23/11 (confirmed)
Average Daily Volume: 1.1 million
Listed on February 12th, 2010


Home Depot - HD - close: 37.48 change: +0.17

Stop Loss: 36.25
Target(s): 39.95
Current Gain/Loss: + 0.0%
Time Frame: 5 trading days
New Positions: Yes, see below

Company Description

Why We Like It:
This is a short-term trade. We have five trading days. HD is due to report earnings on Feb. 22nd before the opening bell. Yet Feb. 21st is a market holiday. We want to open positions on Monday (14th) and close this trade o Friday, unless shares hit our target first ($39.95).

Current Position: Buy HD stock @ current levels

- or -

Buy the March $38 calls (HD1119C38) current ask $0.74

Annotated chart:

Entry on February 14 at $xx.xx
Earnings Date 02/22/11 (confirmed)
Average Daily Volume: 9.8 million
Listed on February 12th, 2010


Toll Brothers - TOL - close: 21.46 change: -0.17

Stop Loss: 20.49
Target(s): 23.45
Current Gain/Loss: + 0.0%
Time Frame: 6 trading days
New Positions: Yes, see below

Company Description

Why We Like It:
Personally I remain very, very cautious about the housing sector but the trend is improving. Shares of TOL just broke out from a five-week trading range and look poised to make another run higher. Traders were buying the dip on Friday. This is another short-term trade. We have six trading days (next Monday the markets are closed). There is a chance TOL could see some short covering. The most recent data listed short interest at 13% of the 145 million-share float.

I am suggesting small bullish positions now. We'll use a stop loss at $20.49. More conservative traders might be able to get away with a tighter (higher) stop loss. Our target is $23.45 but that might be a little too optimistic given our timeframe.

Open Small Positions Now

Suggested Position: Buy TOL stock @ current levels

- or -

Buy the March $22.50 calls (TOL1119C22.5) current ask $0.55

Annotated chart:

Entry on February xx at $xx.xx
Earnings Date 02/23/11 (confirmed)
Average Daily Volume: 2.6 million
Listed on February 12th, 2010