Editor's Note:

Below is a list of potential candidates to add to your watch list:

COHR, DF, FAST, OPNT, EZCH, BTU, CDE, INFA, NEOG,

-James


NEW BULLISH Plays

Sturm, Ruger & Co. - RGR - close: 31.48 change: +0.80

Stop Loss: 29.90
Target(s): 36.00
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
RGR could see a short squeeze. The stock has been consolidating sideways the last few weeks. When the market sold off last week RGR dipped to technical support at its rising 50-dma. Now shares are nearing resistance in the $32.00 area. A breakout could spark some short covering.

I am suggesting a trigger to buy RGR at $32.25. If triggered we'll use a stop loss at $29.90. The August high was $36.85. We'll set our target at $36.00.

FYI: The Point & Figure chart for RGR is bullish with a $40 target. Traders will also want to note that the most recent data listed short interest at more than 11% of the very small 18 million-share float.

Trigger @ 32.25

Suggested Position: buy RGR @ 32.25

- or -

buy the NOV $35 call (RGR1119K35) current ask $1.40

Annotated chart:

Entry on September xx at $ xx.xx
Earnings Date 11/02/11 (confirmed)
Average Daily Volume = 428 thousand
Listed on September 26, 2011


Silver Wheaton Corp. - SLW - close: 32.27 change: -0.04

Stop Loss: 30.45
Target(s): 37.00, 41.00
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SLW is a silver "streaming" company. As silver prices rebound so should shares of SLW. Currently both shares of SLW and silver look short-term oversold and due for a bounce. This morning SLW gapped open lower at $31.01, dipped to $30.55, and then rebounded with a +5.6% surge off its lows of the session. I am suggesting we buy this bounce. We'll open positions tomorrow morning with a stop loss at $30.45. Our multi-week targets are $37.00 and $41.00. More conservative traders may want to exit early near $35.00. Aggressive traders may want to use a stop under $29.75 instead.

We want to use small positions to limit our risk.

*Small Positions*

Suggested Position: buy SLW stock @ the open

- or -

buy the OCT $35 call (SLW1122J35) current ask $1.21

Annotated chart:

Entry on September 27 at $ xx.xx
Earnings Date 11/08/11 (unconfirmed)
Average Daily Volume = 6.7 million
Listed on September 26, 2011