Editor's Note:

In addition to tonight's new candidates I would keep my eye on this list below for potential trades this week.

HPQ, MS, PETM, GHL, DISCK, ALTR, PAY, TRMB, ESRX, and NILE.

NILE - After a two-week consolidation shares of NILE look poised to rally. I am tempted to open bullish positions on a move past $45.50 but I am worried about holding over earnings on November 8th (after the closing bell).

HPQ - The stock gapped down on Tuesday but spent the rest of the week in rebound mode. I was tempted to buy HPQ here but we're looking for a dip back toward $26.00

GHL - This stock looks like it's poised to break some long-term resistance. Shares failed near the 100-dma a few days ago. The stock has above average short interest. A breakout past $40.00 and the 100-dma could spark a short squeeze.

-James


NEW BULLISH Plays

Casey's General Stores - CASY - close: 50.07 change: -0.17

Stop Loss: 47.70
Target(s): 54.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
You could call this a momentum trade but CASY doesn't actually move that fast. Shares have been consistently trending higher. Traders bought the dip twice this past week near $48.00. Now CASY looks poised to breakout past resistance near $50.00. If that happens we could see the stock make a run towards the $55 area.

I am suggesting we open bullish positions in CASY now but only if both CASY and the S&P 500 index open positive on Monday morning. If triggered we'll use a stop loss at $47.70. Our target is $54.50. FYI: The Point & Figure chart for CASY is bullish with a $70.00 target.

*see Entry Details above*

Suggested Position: buy CASY stock @ the open

- or -

buy the DEC $50 call (CASY1117L50) current ask $2.60

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 12/06/11 (unconfirmed)
Average Daily Volume = 250 thousand
Listed on November 5, 2011


Dycom Industries - DY - close: 19.49 change: -0.84

Stop Loss: 18.40
Target(s): 22.25
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks or until earnings.
New Positions: Yes, see below

Company Description

Why We Like It:
DY is a construction company. Last month shares broke out past resistance in the $19.00 area. Now DY has spent the last several days digesting gains (albeit in a very volatile fashion). You can see that DY still has a bullish trend of higher lows. Friday's dip looks like a new entry point. However, we want to keep our position size small because DY can be so volatile.

I am suggesting small bullish positions at the open on Monday but only if both DY and the S&P 500 index can open positive. We will use a stop loss at $18.40 and our target is $22.25. More aggressive traders could aim higher. FYI: The Point & Figure chart for DY is bullish with a $32.50 target.

NOTE: We will probably choose to exit ahead of the earnings report to avoid holding over the announcement in late November.

*see Entry Details above*

Suggested Position: buy DY stock @ the open

- or -

buy the DEC $20 call (DY1117L20) current ask $1.35

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 11/22/11 (unconfirmed)
Average Daily Volume = 379 thousand
Listed on November 5, 2011