Editor's Note:

In addition to tonight's new candidates I'm providing a small list of stocks that might offer some bullish trading opportunities if the stock market continues to rally:

IR, AVY, TTC, DV, YUM, TSCO, and the CBOE.

- James


NEW BULLISH Plays

Limited Brands, Inc. - LTD - close: 36.41 change: +0.89

Stop Loss: 34.49
Target(s): 39.75, 42.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
LTD operates a number of retail brands but they are probably most famous for their Victoria Secrets line. Looking at the charts there is an argument for both the bulls and the bears. I like LTD's long-term chart evident on the weekly chart where LTD still has a bullish pattern of higher lows. On a short-term basis (the last there weeks) LTD also looks bullish. Yet over the last four months LTD has a bearish trend of lower highs and lower lows.

Today's trade is a bet that if the stock market continues to rise then we will see LTD outperform its peers. This past week's breakout over resistance near $35 and its 200-dma is bullish.

I am suggesting bullish positions now but only if LTD and the S&P500 index both open positive on Monday morning. If our trade is opened we'll use a stop at $34.49, which is about 25 cents under Friday's low. Our targets are $39.75 and $42.25. The $38 and $41 levels might offer some overhead resistance.

*See Entry Details Above*

Suggested Position: buy LTD stock @ the open

- or -

buy the OCT $38 call (LTD1122J38) current ask $1.60

Annotated chart:

Weekly chart:

Entry on August xx at $ xx.xx
Earnings Date 11/17/11 (unconfirmed)
Average Daily Volume = 4.9 million
Listed on August 27, 2011


Peet's Coffee & Tea - PEET - close: 56.14 change: +2.12

Stop Loss: 53.25
Target(s): 62.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
In spite of the market correction and PEET's drop from $64 to $52 the stock continues to have a long-term bullish trend. Technically the stock found support at its rising 100-dma this past week. If the market can build on its bounce then we might see PEET retest its highs.

I am a little concerned that PEET does not have a lot of volume. However, there is a good chance that PEET could see another short squeeze. The most recent data listed short interest at 23.7% of the very small 12.6 million-share float.

I am suggesting bullish positions now but only if PEET and the S&P500 both open positive on Monday morning. However, just in case PEET rallies without the market we will list a second trigger to buy PEET at $57.50. Our first target is $62.00. We'll start the play with a stop loss at $53.25, just under Friday's low.

I would keep our position size small. We are not trading the options. The spreads are too wide.

*See Entry Details Above*

Suggested Position: buy PEET stock @ the open

Annotated chart:

Weekly chart:

Entry on August xx at $ xx.xx
Earnings Date 11/02/11 (unconfirmed)
Average Daily Volume = 268 thousand
Listed on August 27, 2011