Editor's Note:

The S&P 500 is bouncing from round-number, psychological support at the 1300 level as traders step in and buy the dip. We're seeing a similar pattern across the market. There were too many candidates to choose from. In addition to tonight's new plays I'm providing a list of stocks that caught my eye. This list of stocks could offer additional bullish opportunities but you need to do your homework. PAY is due to report earnings on March 1st and BID is due to report on Feb. 28th. There could be others that report in March. We would rather not hold over an earnings report.

On my radar screen: BID, ADP, EBAY, PAY, TECH, RVBD, NST, TECD, KSU, CVC, HRB, and HAL.

- James


NEW BULLISH Plays

Boston Scientific Corp. - BSX - close: 7.18 change: +0.16

Stop Loss: 6.85
Target(s): 7.80, 8.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
I would consider BSX a slightly more aggressive bullish trade. The stock has seen a lot of volatility in the last couple of weeks. The bullish breakout higher quickly reversed but then the market was correcting during that time. Traders bought the dip near technical support at the 100-dma and exponential 200-dma (near $6.90). I am suggesting bullish positions now with a stop loss at $6.85 but let's keep our position size small to limit our risk.

- (Small Positions to Limit our Risk)

Suggested Position: buy BSX stock @ current levels

- or -

Buy the April $7.00 calls (BSX1116D7) current ask $0.48

Annotated chart:

Entry on February 28 at $xx.xx
Earnings Date 04/26/11 (unconfirmed)
Average Daily Volume: 16 million
Listed on February 26th, 2010


Maxim Integrated Products - MXIM - close: 27.63 change: +0.90

Stop Loss: 25.95
Target(s): 29.90, 33.50
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The semiconductor stocks have been leaders in the NASDAQ's rally. While the SOX semiconductor index did breakdown recently it is seeing a sharp rebound. Shares of MXIM did not see the same weakness the SOX did and shares of MXIM are now poised to breakout past the $28 level.

I am suggesting bullish positions now with a stop at $25.90. Our targets are $29.90 and $33.50.

Suggested Position: buy MXIM stock @ current levels

- or -

Buy the April $30 calls (MXIM1116D30) current ask $0.35

Annotated chart:

Entry on February 28 at $xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 3.3 million
Listed on February 26th, 2010


Omnicom Group Inc. - OMC - close: 49.92 change: +1.16

Stop Loss: 47.65
Target(s): 54.00
Current Gain/Loss: +0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
OMC is an advertising company. Given the growth in the U.S. economy it should mean business is improving for advertisers as companies feel more confident about spending money to market their products. Currently OMC is bouncing from a test of support near $48.00. I am suggesting bullish positions now with a stop loss at $47.65. Our target is the $54.00 level since OMC has significant resistance in the $54-55 zone.

Suggested Position: Buy OMC stock @ current levels

- or -

Buy the April $50 calls (OMC1116D50) current ask $1.55

Annotated chart:

Entry on February 28 at $xx.xx
Earnings Date 04/20/11 (unconfirmed)
Average Daily Volume: 2.8 million
Listed on February 26th, 2010


Wyndham Worldwide - WYN - close: 31.36 change: +0.75

Stop Loss: 29.90
Target(s): 34.50, 37.50
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of WYN are outperforming some of its peers in the hotel industry. During the market's recent weakness traders bought the dip twice near the $30 level. I am suggesting we open bullish positions on this bounce with a stop loss at $29.90.

Suggested Position: Buy WYN stock @ current levels

- or -

Buy the April $32 calls (WYN1116D32) current ask $1.10

Annotated chart:

Entry on February xx at $xx.xx
Earnings Date 04/28/11 (unconfirmed)
Average Daily Volume: 3.2 million
Listed on February 26th, 2010