Editor's Note:

In addition to tonight's new play these stocks caught my eye and might offer an opportunity. Check them out:

DFS - A rally past $25.00 could be a bullish entry point.

TSS - I would be tempted to open bullish positions now or you could wait for a rally past $20.30 or the high near $20.50 as your entry point.

CMA - This financial stock appears to be forming a bottom in spite of all the volatility in this sector.

TXN - A breakout past resistance near $32.00 and its 200-dma could be used as a bullish entry point.

-James


NEW BULLISH Plays

Allegheny Technologies Inc. - ATI - close: 49.99 change: +2.34

Stop Loss: 47.45
Target(s): 56.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ATI is a specialty metals maker. The stock has been consolidating under resistance near the $50 level for days. Shares have been building a bullish trend of higher lows and now ATI is poised to breakout. I am concerned that the exponential 200-dma near $51.90 could be resistance but after days of consolidating under $50.00 I suspect a breakout could push ATI toward its simple 200-dma near $57 instead.

I am suggesting a trigger to open bullish positions at $50.60 with a stop loss at $47.45. Our exit target is $56.75. FYI: The Point & Figure chart for ATI is bullish with a $57 target.

Trigger @ 50.60

Suggested Position: buy ATI stock @ 50.60

- or -

buy the DEC $52.50 call (ATI1117L52.5) current ask $2.40

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 2.5 million
Listed on November 12, 2011


Newfield Exploration Co. - NFX - close: 44.01 change: +1.58

Stop Loss: 41.75
Target(s): 49.75
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
This oil stock has just broken out past technical resistance at its 50-dma. It's also pushing past price resistance near $44.00. Add in a bullish P&F chart and what looks like a bullish double bottom back in October and NFX is poised to rally higher.

You could argue that NFX is short-term overbought with a +10% bounce from its Wednesday lows. Thus I am suggesting we keep our position size small to limit our risk. We want to open bullish positions on Monday morning but only if both NFX and the S&P 500 index open positive. More conservative traders might want to wait for a rally past possible resistance near $45.00 instead. We will use a stop loss at $41.75. Our target is $49.75. FYI: The Point & Figure chart for NFX is bullish with a $57.00 target.

*See Entry Details Above*

Suggested Position: buy NFX stock @ the open

- or -

buy the DEC $45 call (NFX1117L45) current ask $2.35

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 4.1 million
Listed on November 12, 2011