Editor's Note:

Short-term traders might want to check out Red Hat Inc. (RHT). I was poised to write up a bullish trade on the stock tonight but then I noticed that the company is due to report earnings on September 21st (Wednesday). Nimble traders could buy RHT tomorrow and exit prior to the closing bell on Wednesday to avoid holding over earnings out Wednesday night.

- James


NEW BULLISH Plays

Nordstrom Inc. - JWN - close: 47.98 change: +0.09

Stop Loss: 45.90
Target(s): 51.75
Current Gain/Loss: unopened
Time Frame: 2 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Some of the high-end retail names were showing relative strength today. JWN bounced from its morning lows near $46.60 to close in positive territory. I am suggesting we take advantage of this strength and launch positions now. However, we only want to open bullish positions if both JWN and the S&P 500 index both open positive tomorrow morning.

The $50.00 level might offer some round-number, psychological resistance but our final target is $51.75.

*see Entry Point Details Above*

Suggested Position: buy stock @ the open

- or -

buy the OCT $50 call (JWN1122J50) current ask $1.76

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/10/11 (unconfirmed)
Average Daily Volume = 3.8 million
Listed on September 19, 2011