Editor's Note:

I am urging caution here. The U.S. market fared better than its European counterparts this past week. Yet the current two-day bounce in the S&P 500 could be nothing more than an oversold bounce before the index breaks down again. We would love to see a traditional "Santa Claus" rally but nothing is guaranteed.

My market bias is neutral to down but the best candidates we found this weekend are actually bullish ones (OXM and UAL). Personally, Monday might be a good day to just sit back and watch. If you do feel compelled to trade I would keep positions small to limit your exposure.

-James


NEW BULLISH Plays

Oxford Industries Inc. - OXM - close: 42.09 change: +0.98

Stop Loss: 40.65
Target(s): 44.90
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
OXM is an apparel maker. Shares have been showing relative strength. Traders recently bought the dip near $40 and its rising 10-dma. If the market cooperates we could see OXM extend its run to new multi-year highs.

I am suggesting we open small bullish positions on Monday morning but only if both the OXM and the S&P 500 index open positive. If our trade is opened we'll use a tight stop loss at $40.65 and we want to keep positions small to limit our risk. Our target is $44.90.
FYI: The Point & Figure chart for OXM is bullish with a $62 target.

*see Entry Details above* (small positions)

Suggested Position: buy OXM stock @ the open

- or -

buy the Jan $45 call (OXM1221A45) ask $0.95

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 03/29/12 (unconfirmed)
Average Daily Volume = 220 thousand
Listed on December 17, 2011


United Continental Holdings - UAL - close: 21.24 change: +0.60

Stop Loss: 20.35
Target(s): 24.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The recent sell-off in oil prices has been a boon for airline stocks. Shares of UAL just broke out from a two-week consolidation and past resistance near $21 and its 200-dma. Readers may want to open bullish positions now. However, I see potential resistance near $21.50 so the newsletter is suggesting a trigger to open small bullish positions at $21.55. We'll use a stop loss at $20.35. We'll set our exit target at $24.75.
FYI: The Point & Figure chart for UAL is bullish with a $31.50 target.

Trigger @ $21.55 (small positions)

Suggested Position: buy UAL stock @ 21.55

- or -

buy the 2012Jan $22.50 call (1221A22.5) ask $0.69

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 7.1 million
Listed on December 17, 2011