Editor's Note:

Tonight we're adding a couple of bullish candidates. However, readers will want to keep an eye on the transports and the airline stocks. These groups could suffer as crude oil continues to go higher. Oil might see a little dip next week. That could produce a little oversold bounce in the airlines and transports, which might end up being an entry point for bearish put positions.

I would keep an eye on airline stock DAL and UAL. Both are trading at what could be short-term support after a sharp decline this past week. We will watch for the oversold bounce to stall before considering new bearish positions.


NEW BULLISH Plays

Charles Schwab - SCHW - close: 13.52 change: +0.31

Stop Loss: 12.49
Target(s): 14.75
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of SCHW have spent almost seven months building a bottom in the $10.70-13.00 zone. Now the stock is breaking out past the top of this range and its simple and exponential 200-dma. I am suggesting we open bullish positions on a dip a t $13.25 with a stop loss under Thursday's low at $12.49. Our multi-week target is $14.75.
FYI: The Point & Figure chart for SCHW is bullish with a $19.00 target.

Trigger: buy a dip at $13.25

Suggested Position: buy SCHW stock @ (trigger)

- or -

buy the Apr $13 call (SCHW1221D13)

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 04/16/12 (unconfirmed)
Average Daily Volume = 15.9 million
Listed on February 25, 2011


VimpelCom - VIP - close: 12.50 change: +0.31

Stop Loss: 11.75
Target(s): 14.25
Current Gain/Loss: unopened
Time Frame: up to its March earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
VIP is a European wireless company that's showing relative strength. The stock has built a bottom over the last several months. The recent breakout past resistance near $12.00 is bullish. I am suggesting we open small bullish positions at the opening bell on Monday but only if both VIP and the S&P 500 index open positive. We'll use a stop loss at $11.75. Our target is $14.25 but I will confess this is too optimistic. VIP is due to report earnings in mid March and we do not want to hold over the report.

Keep in mind that VIP is prone to gap open each morning as shares adjust to trading overseas. FYI: The Point & Figure chart for VIP is bullish with a long-term $19.00 target.

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

Suggested Position: buy VIP stock @ (the open)

Annotated chart:

Entry on February xx at $ xx.xx
Earnings Date 03/13/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on February 25, 2011