Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

(bullish candidates) APKT, MU, N, IP, PHM, SYMC, CASY


NEW BULLISH Plays

Archer-Daniels-Midland Co - ADM - close: 31.15 change: +0.40

Stop Loss: 29.75
Target(s): 34.00
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ADM is in the agricultural industry and the stock has been consolidating in a trading range under resistance near $30.50 for months. The stock recently broke out past this resistance and looks poised to run. Technically the simple 50-dma is crossing the simple 200-dma (a.k.a. the golden cross) which is normally a bullish development.

I am suggesting new bullish positions at the open tomorrow morning but only if both ADM and the S&P 500 index open positive. More conservative traders might want to consider waiting for a dip near ADM's rising 10-dma instead. If our trade is opened We'll aim for $34.00 with an initial stop loss at $29.75. FYI: The Point & Figure chart for ADM is bullish with a $40.00 target.

Do not enter position unless ADM and the S&P 500 are both positive at the open

Suggested Position: buy ADM stock @ the open

- or -

buy the Mar $32 call (ADM1217C32) current ask $0.45

Annotated chart:

Weekly chart:

Entry on February xx at $ xx.xx
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 5.6 million
Listed on February 14, 2011