Editor's Note:

In addition to tonight's new play these stocks caught my eye and might offer an opportunity.

Potential bullish candidates: SWN, CSCO, LYB, and AIXQ

Potential bearish candidates: ROG, and IIVI

- James


NEW BULLISH Plays

iShares Gold Trust - IAU - close: 14.39 change: +0.12

Stop Loss: 13.75
Target(s): 15.75
Current Gain/Loss: + 0.0%
Time Frame: 9 to 12 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The IAU is an exchange traded fund designed to reflect the ups and downs in gold. Given all the uncertainty around the world and concerns over inflation the rally in gold could have further to run. The breakout in the IAU past the $14.00 area looks like a bullish entry point. I would keep our positions small since the precious metals could start to see more volatility as this very crowded trade could start to get a little frothy.

I am suggesting bullish positions now but you could wait and buy dips in the $14.25-14.00 zone. We'll use a stop loss at $13.75. Our first upside target is $15.75.

- Small Positions Only -

Suggested Position: buy the IAU @ current levels

Annotated chart:

Entry on April 11 at $xx.xx
Earnings Date --/--/--
Average Daily Volume: 3.8 million
Listed on April 9th, 2011