Editor's Note:

In addition to tonight's candidates, these stocks caught my eye as potential bullish candidates. I'd put them on your radar screen.

GBX, TU, ZEUS. I also like TSU and SKS but both have earnings coming up soon.

- James


NEW BULLISH Plays

Allied Nevada Gold Corp. - ANV - close: 29.76 change: +0.87

Stop Loss: 27.40
Target(s): 33.00, 34.75
Current Gain/Loss: + 0.0%
Time Frame: 2+ weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Gold stocks are on the mend. Meanwhile the U.S. dollar seems to be rolling over, which should help the price of gold. Shares of ANV have broken out to new highs over resistance near $29.00. I am suggesting small bullish positions now. We want to keep our position size small because gold mining stocks can be very volatile. Our first target is $33.00. However, we may have to exit early. I've found two different earnings report dates for ANV but the most likely report date is Feb. 28th and we do not want to hold over the announcement.

- open Small Bullish positions now -

Suggested Position: Buy ANV stock @ current levels

- or -

Buy the March $30 calls (ANV1119C30) current ask $1.45

Annotated chart:

Entry on February 17 at $xx.xx
Earnings Date 02/28/11 (unconfirmed)
Average Daily Volume: 689 thousand
Listed on February 16th, 2010


Signet Jewelers Limited - SIG - close: 44.70 change: +1.24

Stop Loss: 42.40
Target(s): 49.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
After eight weeks of digesting its very impressive summer gains, shares of SIG look rested and ready for another leg higher. The stock is poised to breakout over resistance near the $45.00 level. I am suggesting a trigger to open bullish positions at $45.25. If triggered our first target is $49.75.

FYI: The Point & Figure chart for SIG is bullish with a $79 target.

Trigger @ $45.25

Suggested Position: Buy SIG stock @ $45.25

- or -

Buy the March $45 calls (SIG1119C45) current ask $1.55

Annotated chart:

Entry on February xx at $xx.xx
Earnings Date 03/30/11 (unconfirmed)
Average Daily Volume: 436 thousand
Listed on February 16th, 2010