Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) MAIN, USG, RJF, RNF, BECN, CINF, AMCX, CREE, SPRD,

(bearish ideas) ZBRA, FCN, TROX, CPHD


NEW BULLISH Plays

Ryland Group - RYL - close: 33.76 change: -0.30

Stop Loss: 32.40
Target(s): 39.50
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 27, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
Momentum has certainly slowed but the homebuilders still have a bullish up trend compared to the multi-week sell-off in the rest of the market. Shares of RYL tagged new multi-year highs this last week in reaction to its earnings report.

I am suggesting we launch small bullish positions if RYL can trade at $34.50 or higher. We will aim for $39.50.

Trigger @ 34.50

Suggested Position: buy RYL stock @ 34.50

Annotated chart:



NEW BEARISH Plays

Diebold, Inc. - DBD - close: 29.51 change: -1.29

Stop Loss: 30.65
Target(s): 26.50
Current Gain/Loss: unopened

Entry on October 29 at $ xx.xx
Listed on October 27, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 651 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
DBD produces a variety of business equipment, mostly for security-related products. Back on October 16th the company issued an earnings warning. When they reported on the 25th, the results missed by a wide margin. After consolidating along support near $30.00 for a few days DBD is now breaking down to new multi-month lows.

I am suggesting new bearish positions at the open on Monday. Our target is $26.50. FYI: The Point & Figure chart for DBD is bearish with a $21 target.

Suggested Position: short DBD stock @ (the open)

Annotated chart:



Level 3 Communications - LVLT - close: 20.68 change: -0.25

Stop Loss: 21.05
Target(s): 17.00
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 27, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
LVLT reported earnings on the 24th of October. The results missed Wall Street's expectations and the stock saw a -10% plunge intraday. Now traders are selling the bounce and shares are at new two-month (closing) lows. LVLT is headed for support at $20.00 and I am expecting a breakdown.

I'm suggesting a trigger to open small bearish positions at $19.90. If triggered our target is $17.00. LVLT can be somewhat volatile so I am suggesting small positions.

Trigger @ 19.90 *Small Positions*

Suggested Position: short LVLT stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the NOV $20 PUT (LVLT1217w20) current ask $0.50

Annotated chart: