Editor's Note:

Here is a list of stocks currently on my radar screen:

FAST, EXPE, YUM, CAH, FRX, CVH, SYMC, FIS, CSX, DFS, and HMC

- James


NEW BULLISH Plays

American Express Co. - AXP - close: 52.34 change: +0.64

Stop Loss: 49.25
Target(s): 54.75
Current Gain/Loss: unopened
Time Frame: up to its earnings report
New Positions: Yes, see trigger

Company Description

Why We Like It:
Financial stocks look like they might be turning higher after weeks of underperforming. AXP has managed to outperform its peers. The stock closed at new two-year highs on Friday. Imagine how strong AXP might be if the financials actually turned bullish? AXP never broke its long-term up trend of higher lows. The Point & Figure chart for AXP is bullish with a $70 target.

On a short-term basis the stock is overbought. I am suggesting we launch bullish positions on a dip at $51.00. More conservative traders could wait for a dip closer to $50.00 instead. I'm setting our target at $54.90 but that might be a little optimistic since we do not want to hold over the July 20th earnings report.

Trigger @ 51.00

Suggested Position: buy AXP stock @ 51.00

- or -

buy the Aug. $50 call (AXP1120H50)

Annotated chart:

Entry on July x at $xx.xx
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume: 7.0 million
Listed on July 2, 2011


Marsh & McLennan Companies - MMC - close: 31.54 change: +0.35

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Shares of this insurance broker spent four months consolidating under resistance at the $31.00 level. This past week the stock has broken out to new two-year highs. I am suggesting we launch bullish positions on a dip at $31.00. Cautious traders could wait for a dip closer to the $30.50 level instead. If triggered we'll use a stop at $29.75. Our target is $34.00 but that might be a little optimistic. MMC does not move super fast. We do not want to hold over the early August earnings report.

Trigger @ 31.00

Suggested Position: buy MMC stock @ 31.00

- or -

buy the Aug. $31 call (MMC1120H31) current ask $1.10

Annotated chart:

Entry on July x at $xx.xx
Earnings Date 08/03/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on July 2, 2011