Editor's Note:

FYI: I wanted to share some of the stocks on my watch list tonight.

WSM, FLIR, BJ, KMT, PETM, EXBD, REG, TKR, CVS, S, WAG, DIS, KIRK, MCHP, MYL, and SYMC.

- James


NEW BULLISH Plays

Arrow Electronics, Inc. - ARW - close: 46.26 change: +1.06

Stop Loss: 43.90
Target(s): 49.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ARW is in the wholesale electronics business. Shares have just spent the last two weeks consolidating sideways near very significant resistance at the $45 level. Now shares are on rise again. I am suggesting bullish positions now with a stop loss at $43.90. Our target is $49.90. FYI: The Point & Figure chart for ARW is bullish with an $81 target.

Open bullish positions now!

Suggested Position: buy ARW stock @ current levels

- or -

Buy the June $47.50 call (ARW1118F47.5) current ask $1.20

Annotated chart:

Entry on May 11 at $xx.xx
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 1.1 million
Listed on May 10th, 2011


The Dow Chemical Co. - DOW - close: 40.74 change: +0.89

Stop Loss: 38.75
Target(s): 43.00, 44.85
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Investors are in a buy-the-dip mood and shares of DOW are bouncing from prior resistance near the $39 level. The stock spent most of February, March and April forming an inverse head-and-shoulders pattern. This bullish pattern is projecting an upside target near $43.00.

I am suggesting bullish positions now. We'll set our first target at $43.00 and our secondary target at $44.85. We'll start this trade with a stop loss at $38.75. FYI: The Point & Figure chart for DOW is bullish with a $69 target.

Open bullish positions now!

Suggested Position: buy DOW stock @ current levels

- or -

buy the June $42 call (DOW1118F42) current ask $0.88

Annotated chart:

Entry on May 11 at $xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 8.5 million
Listed on May 10th, 2011


Kansas City Southern - KSU - close: 57.28 change: +0.65

Stop Loss: 54.75
Target(s): 64.00
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Railroad stocks have been showing plenty of strength recently. The Dow Jones Railroad index is nearing its all-time highs. KSU isn't that far behind and looks poised to challenge its all-time highs last two weeks ago. Traders bought the dip at support (and prior resistance) near $55. I am suggesting we take advantage of this bounce from support and launch positions now. Conservative traders might want to take profits early near the $60.00 level, which might be round-number resistance. I am setting our profit target at $64.00. FYI: The Point & Figure chart for KSU is bullish with a $78 target.

Open Bullish Positions Now!

Suggested Position: buy KSU stock @ current levels

- or -

buy the June $60 call (KSU1118F60) current ask $1.10

Annotated chart:

Entry on May 11 at $xx.xx
Earnings Date 07/27/11 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on May 10th, 2011