Editor's Note:

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

(bullish ideas) LPI, RNDY, NEOG, GLW, OIH, NTRS, IR, MAR, WRB, WAG, PDCO, FIS, USB, CYH, XLF, SNV


NEW BULLISH Plays

SeaDrill Limited - SDRL - close: 38.43 change: +0.05

Stop Loss: 37.40
Target(s): 41.50
Current Gain/Loss: unopened
Time Frame: up to the late May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
The oil services sector appears to have bottomed over the last three weeks and the OSX oil service index is ready to breakout past resistance. SDRL has a similar pattern but it's showing a bit more relative strength. This past week saw shares breakout past its 50-dma.

I am suggesting a trigger to open bullish positions at $38.65. If triggered we will target a run to $41.50. We do not want to hold over the very late May earnings report (end of the month).

Trigger @ $38.65

Suggested Position: buy SDRL stock @ (trigger)

- or -

Buy the Jun $40 call (SDRL1216F40) current ask $0.60

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/31/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on April 28, 2011


Williams Sonoma Inc. - WSM - close: 39.50 change: +0.46

Stop Loss: 38.40
Target(s): 44.00
Current Gain/Loss: unopened
Time Frame: exit prior to the mid May earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this specialty retailer on rebounding back towards resistance at the $40.00 level. The stock has been building on a pattern of higher lows for weeks. I suspect WSM is poised to breakout past key resistance at $40.00 soon. If that happens shares could see some short covering.

I am suggesting a trigger to launch bullish positions at $40.15 with a stop loss at $38.40. We will target a run to $44.00 but we do not want to hold over the mid May earnings report.

Trigger @ $40.15

Suggested Position: buy WSM stock @ (trigger)

- or -

buy the May $40 call (WSM1219E40) current ask $1.20

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/17/12 (unconfirmed)
Average Daily Volume = 2.1 million
Listed on April 28, 2011