Editor's Note:

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

NILE did not sell off with the market today. Shares managed a bounce instead. Has this stock finally found a bottom? I would be tempted to open bullish positions if NILE could rally past $35.00.

ETFC is another stock that appears to have found a bottom with support near $8.00. Shares were showing relative strength today. How far could an oversold bounce carry ETFC?

-James


NEW BULLISH Plays

AutoNation Inc. - AN - close: 33.66 change: +0.16

Stop Loss: 32.45
Target(s): 39.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AN is one of the largest automobile retailers in the U.S. It looks like the stock may have found a bottom. If shares can reverse they could see a short squeeze. The most recent data listed short interest at over 20% of the float.

I am suggesting a trigger to open bullish positions at $34.45. If triggered we'll use a stop loss at $32.45. Our multi-week target is $39.50. More conservative traders may want to exit in the $37.75 region instead.

Trigger @ 34.45

Suggested Position: buy AN stock @ the trigger

- or -

buy the Jan $35 call (AN1221A35) current ask $1.55

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on November 21, 2011


Hi Tech Pharmacal Co. - HITK - close: 37.72 change: +0.64

Stop Loss: 35.80
Target(s): 44.00
Current Gain/Loss: unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HITK is also a short squeeze candidate. Not only are shares of this drug maker near all-time highs but the stock has been very resistant to the market's troubles. The stock could see a short squeeze. The most recent data listed short interest at 14% of the very small 9.9 million-share float.

I am suggesting bullish positions tomorrow morning if both HITK and the S&P 500 index can open positive. We'll use a stop loss at $35.80 since $36.00 has been short-term support. The $40.00 level might be resistance but if HITK does see a short squeeze I am expecting a much bigger move. FYI: The Point & Figure chart for HITK is bullish with a $58.00 target.

NOTE: We do not want to hold over the December earnings report so we only have two or three weeks.

*see Entry Details Above*

Suggested Position: buy HITK stock @ the open

- or -

buy the DEC $40 call (HITK1117L40) current ask $1.25

Annotated chart:

Entry on November xx at $ xx.xx
Earnings Date 12/08/11 (unconfirmed)
Average Daily Volume = 180 thousand
Listed on November 21, 2011