Editor's Note:

Just a quick note... today's market rally was very widespread. There are a lot of stocks that look like bullish candidates. Here are a few I strongly considered. You may want to check them out: BHP, BNI, FLS, NAV, VMI


NEW DIRECTIONAL CALL PLAYS

Covance Inc. - CVD - close: 48.22 change: +1.76 stop: 45.49

Why We Like It:
The drug and biotech testing firms are seeing a rally. CVD has resistance near $46.00 now it's acting as support. Today's breakout over the simple 200-dma looks like an entry point. My two concerns are potential resistance at the exponential 200-dma and the lack of volume on today's bounce. CVD's bullish trend of higher lows is very much in force. I'm suggesting positions now or on dips near $46.00. Our first target is $52.40. Our second target is $57.00 but we may run out of time.

Suggested Options:
CVD has earnings in late July. I'm suggesting the August calls but we'll plan to exit before the earnings report.

BUY CALL AUG 45.00 CVD-HI open interest= 835 current ask $5.00
BUY CALL AUG 50.00 CVD-HJ open interest= 564 current ask $2.15
BUY CALL AUG 55.00 CVD-HK open interest= 205 current ask .70

Annotated Chart:

Picked on     June 25 at $ 48.22
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       654 thousand
Listed on  June 25, 2009         


Deckers Outdoor - DECK - close: 71.90 change: +3.93 stop: 66.75

Why We Like It:
DECK experienced a little bit of a short squeeze this morning. I think it can continue. The most recent data listed short interest at almost 12% of the very small 13 million share float. If this market continues to climb bears could be running for cover. DECK is on the verge of breaking out from a two-week consolidation. I'm suggesting new positions now. More conservative traders can wait for a new high. If you're nimble and patient a better entry point would be on a dip near $70.00. Our first target is $78.50.

Suggested Options:
I am suggesting the August calls. We'll plan to exit before DECK's earnings report.

BUY CALL AUG 70.00 QUK-HN open interest= 29  current ask $7.80
BUY CALL AUG 75.00 QUK-HO open interest= 49  current ask $5.30
BUY CALL AUG 80.00 QUK-HP open interest= 65  current ask $3.50

Annotated Chart:

Picked on     June 25 at $ 71.90
Change since picked:      + 0.00
Earnings Date           08/06/09 (unconfirmed)
Average Daily Volume =       630 thousand 
Listed on  June 25, 2009         


Millicom Intl. - MICC - close: 56.37 change: +0.85 stop: 53.45

Why We Like It:
The correction in MICC, an international mobile phone service provider, has taken four weeks. Shares finally found support near its rising 50-dma. I'm suggesting readers buy calls now. More conservative traders may want a little more confirmation and can use a move over $57.00 as their entry point. Our first target is $59.95. Our second target is $64.50. We only have about three weeks before MICC's earnings so we may not reach the second target.

Suggested Options:
I'm suggesting the July or August calls. July strikes expire in a little more than three weeks.

BUY CALL JUL 55.00 CQD-GK open interest= 298 current ask $3.70
BUY CALL JUL 60.00 CQD-GL open interest= 529 current ask $1.40

BUY CALL AUG 55.00 CQD-HK open interest=  63 current ask $6.00
BUY CALL AUG 60.00 CQD-HL open interest= 117 current ask $3.70

Annotated Chart:

Picked on     June 25 at $ 56.37
Change since picked:      + 0.00
Earnings Date           07/21/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  June 25, 2009