Editor's Note:

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

(bearish ideas) TYC, ARW, LOGM, CGNX, DIOD, TXN, BTU, HIG, WU

(bullish ideas) MTH, DIS


NEW BULLISH Plays

Cal-Maine Foods, Inc. - CALM - close: 38.40 change: +0.72

Stop Loss: 36.75
Target(s): 42.00
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
CALM is an egg producer and its stock price is looking sunny-side up. Shares have ignored the market's recent weakness. The stock broke through resistance near $38 and its 100-dma and 50-dma today. If this strength continues CALM could see a short squeeze. The most recent data listed short interest at 21.5% of a very small 13.8 million share float.

The high today was $38.44. I am suggesting a trigger to open bullish positions at $38.55. Our target is $42.00. We'll use a stop loss at $36.75.

Trigger @ 38.55

Suggested Position: buy CALM stock @ (trigger)

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 123 thousand
Listed on May 16, 2011


NEW BEARISH Plays

Foster Wheeler AG - FWLT - close: 19.45 change: -0.66

Stop Loss: 21.35
Target(s): 17.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
FWLT is a Swiss construction company. The stock is trading with a bearish pattern. Early May shares created a lower high and several days ago FWLT broke down through several layers of support. Now FWLT is breaking round-number, psychological support at the $20.00 mark.

I am suggesting bearish positions at the open tomorrow. We'll use a stop loss at $21.35. Our target is $17.25.

Suggested Position: short FWLT stock @ (the open)

- or -

buy the Jun $20 PUT (FWLT1216R20) current ask $1.40

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 1.4 million
Listed on May 16, 2011