Editor's Note:

Additional Trading Ideas:

Consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:

(bullish ideas)
SFTBY, GBX, MSFT, CTRN, WBMD, CMCO, THC, LM, GB, CSX, PBI, AA, ALKS



NEW BULLISH Plays

Saia, Inc. - SAIA - close: 45.46 change: +0.64

Stop Loss: 42.90
Target(s): To Be Determined
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 07, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 239 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
SAIA is in the services sector. The company runs trucking service to handle shipments between 100 and 10,000 pounds. They were formerly known as SCS Transportation.

The S&P 500 index ended the week at record highs. The transportation stocks have been leading the market higher. The Dow Jones Transportation Average also closed at all-time highs. The latest economic data has been mixed with the most recent Q1 GDP estimate revised lower. Yet data from the transport industry suggest a growing economy. Rail traffic has been strong and trucking traffic has also been improving.

Cass Information Systems reported that trucking shipments in May were up +3.6% year over year and up 1% from the prior month. Thus far trucking companies have seen freight shipments in the first five months of 2014 hit their best levels "since the end of the Great Recession" (source: IBD).

The first quarter was rough for a lot of companies but not for SAIA. The company delivered its Q1 results on April 25th and beat Wall Street's top and bottom line estimates in spite of the harsh weather. Analysts are expecting SAIA's earnings to grow +30% this year and +24% in 2015.

On May 20th SAIA said LTL tonnage per day rose +7.5% in April compared to a year ago. Halfway through May their LTL tonnage was up more than 8%. If this keeps up the company is likely to deliver another strong quarter of earnings.

This past week saw traders buy the dip in SAIA near its 20-dma. As of Friday the stock is hovering just below resistance near $45.60. Tonight we're suggesting a trigger to open bullish positions at $46.00.

Trigger @ $46.00

Suggested Position: Buy SAIA stock @ (trigger)

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

Buy the Sep $50 call (SAIA140920C50) current ask $1.65

Option Format: symbol-year-month-day-call-strike

Annotated chart:

Weekly chart:



Super Micro Computer, Inc. - SMCI - close: 21.83 change: -0.09

Stop Loss: 19.90
Target(s): To Be Determined
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 07, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 467 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
SMCI is in the technology sector. The company makes high performance servers (computers). The stock has been stuck in the $8.00-18.00 trading range for years. That changed back in January when SMCI reported earnings that beat analysts estimates on both the top and bottom line. If that wasn't enough SMCI's management also raised their guidance. Shares soared to all-time highs on this news. You can see the spike higher in January.

When investors turned sour on high-growth and momentum names this past spring shares of SMCI corrected sharply but now it's back and poised to challenge its highs. That's because SMCI has delivered another strong quarter of growth.

SMCI reported its Q3 results on April 22nd. Wall Street was expecting a profit of $0.27 per share on revenues of $335.19 million. SMCI bested estimates with a profit of $0.37 per share and revenues soared +34.5% to $373.8 million. Management then guided higher for the current quarter and raised its top and bottom line estimates above Wall Street's estimate. It was their second straight quarter of record highs for revenues and earnings.

Analysts have started revising their numbers on SMCI as the company is growing faster than its rivals. Some might consider SMCI cheap with a P/E at 20.

Currently SMCI is hovering just below short-term resistance near $22.00. We are suggesting a trigger to launch bullish positions at $22.25. We're not setting an exit target tonight but I will note that the point & figure chart is bullish and forecasting at $25 target.

Trigger @ $22.25

Suggested Position: buy SMCI stock @ (trigger)

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

Buy the Oct $22.50 call (SMCI141018C22.50) current ask $2.05

Option Format: symbol-year-month-day-call-strike

Annotated chart:

Weekly chart: