Editor's Note:

In addition to tonight's new play these stocks look interesting and might offer a trade set up soon.

FAST - this stock was showing relative strength on Friday. FAST hit new all-time highs on Friday. My concern is that shares could be short-term overbought.

SBUX - this stock is also trading near all-time highs. I would be tempted to open positions now.

ODFL - this is a transportation stock that closed near all-time highs on Friday. The breakout past $40.00 is very positive.

NANO - shares of NANO might be a buy if the stock can breakout past resistance near $18.00.

-James


NEW BULLISH Plays

Trinity Industries - TRN - close: 30.62 change: +0.67

Stop Loss: 28.75
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
TRN operates in the railroad industry. As a sector the transports look poised to breakout past major resistance. Shares of TRN are already leading the way higher. TRN broke out past resistance near $30.00 and its simple 200-dma on Friday. This looks like a new bullish entry point.

I am suggesting we open bullish positions on Tuesday morning but only if both TRN and the S&P 500 index open positive. If the S&P 500 opens flat then we'll base our decision on TRN's open but if the S&P opens down, then no trade. We will use a stop loss at $28.75. Our target is $34.75.

FYI: The Point & Figure chart for TRN is currently bearish but a breakout past $31.00 would produce a new triple-top breakout buy signal.

*See Entry Details Above*

Suggested Position: buy TRN stock @ the open

- or -

buy the Jan $30 call (TRN1221A30) ask $1.75

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/15/12 (unconfirmed)
Average Daily Volume = 633 thousand
Listed on December 24, 2011