Editor's Note:

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

INFA, CPO, ATR, BID, RAX, MATW, OMI, FL, SCI

Note: You will want to double check the earnings dates before considering new positions.

Readers will also want to look at the REIT industry. Almost every REIT stock I saw this weekend was moving higher and showing relative strength on Friday.

- James


NEW BULLISH Plays

FLIR Systems - FLIR - close: 33.52 change: +0.39

Stop Loss: 32.40
Target(s): 37.25
Current Gain/Loss: + 0.0%
Time Frame: less than two weeks.
New Positions: Yes, see below

Company Description

Why We Like It:
FLIR is an aerospace and defense contractor. The stock tagged a new two-year high in March and spent the first half of April correcting. Now the stock has been finding support near $33 and looks poised to bounce from its simple 50-dma.

I am suggesting small bullish positions now (one half or less than your normal trade size) with a stop loss at $32.40. More conservative traders could wait for FLIR to trade over $34.00 before initiating positions. This is a short-term trade. We plan to exit ahead of its earnings report on April 29th. Our first target is $37.25.

- Small Bullish Positions -

Suggested Position: buy FLIR stock @ current levels

- or -

Buy the May $34 calls (FLIR1121E34) current ask $0.95

Annotated chart:

Entry on April 18 at $xx.xx
Earnings Date 04/29/11 (confirmed)
Average Daily Volume: 926 thousand
Listed on April 16th, 2011


Sunoco, Inc. - SUN - close: 42.90 change: +0.07

Stop Loss: 41.40
Target(s): 46.50
Current Gain/Loss: + 0.0%
Time Frame: about 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SUN is an oil refining company. The stock has seen a correction from its April highs. Now SUN is testing its long-term trendline of higher lows. This should be strong support. If there was a spot to buy the dip then this is it.

I am suggesting bullish positions now. The low this past week was $42.07. I am suggesting a stop loss at $41.40. More aggressive traders could use a wider stop loss. Our first target is $46.50.

Suggested Position: Buy SUN stock @ current levels

- or -

Buy the May $45 calls (SUN1121E45) current ask $0.77

Annotated chart:

Entry on April 18 at $xx.xx
Earnings Date 05/05/11 (confirmed)
Average Daily Volume: 2.0 million
Listed on April 16th, 2011


Waste Connections Inc. - WCN - close: 29.81 change: +0.40

Stop Loss: 28.80
Target(s): 32.00
Current Gain/Loss: + 0.0%
Time Frame: five trading days
New Positions: Yes, see below

Company Description

Why We Like It:
WCN surged to new all-time highs in early April. The stock has since seen a correction back toward its simple 50-dma. The long-term trend is still up and traders have begun to buy the dip. This looks like an entry point to hop on board a stock that has been stair-stepping higher for months. My only concern is the time frame. WCN is due to report earnings on April 25th. We do not want to hold over the report. That doesn't give us much time. Keep our position size small to limit our risk.

I'm suggesting we launch positions now with a stop loss at $28.80. Our target is $32.00 but that might be a little too optimistic. We'll plan to exit on April 25th at the closing bell to avoid earnings.

I will be quick to hit the eject button if we don't see WCN produce some follow through on Friday's bounce.

NOTE: WCN does not have a lot of option volume and the option spreads are very wide. Only aggressive traders willing to take the extra risk should consider these.

- Small Positions -

Suggested Position: Buy WCN stock @ current levels

- or -

buy the May $30 calls (WCN1121E30) current ask $0.75

Annotated chart:

Entry on April 18 at $xx.xx
Earnings Date 04/25/11 (confirmed)
Average Daily Volume: 687 thousand
Listed on April 16th, 2011