Editor's Note:

Traders shouldn't make any big bets based on Friday's market movement. Let's wait and see how stocks react on Monday when fund managers get back from their Thanksgiving holiday.

A few stocks that could be bullish candidates: AZO, DE, GR.

A few stocks that could be bearish candidates: JPM, RYAAY, CMG



NEW DIRECTIONAL CALL PLAYS

Precision Castparts - PCP - close: 105.27 change: -1.93 stop: 103.49

Why We Like It:
PCP was hitting new 2009 highs a few days ago. The profit taking on Friday wasn't that bad with shares bouncing near prior resistance. If this market can rebound from current levels I suspect PCP will quickly return to making new highs again. The Point & Figure chart is bullish with a $131 target.

I am suggesting a trigger to buy calls at $107.35. If triggered our first target to take profits is at $112.45. Our second target is $118.75.

Suggested Options:
I'm suggesting the 2010 January calls. My preference is the $110 strike. The new symbology for the 2010 January $110 call is: PCP1016A110

BUY CALL JAN 110 PCP-AB open interest=513  current ask $2.75

Annotated Chart:

Picked on  November xx at $ xx.xx <-- TRIGGER @ 107.35
Change since picked:       + 0.00
Earnings Date            01/20/10 (unconfirmed)
Average Daily Volume =        817 thousand 
Listed on  November 28, 2009         


NEW DIRECTIONAL PUT PLAYS

FISERV Inc. - FISV - close: 46.29 change: -1.01 stop: 48.55

Why We Like It:
Shares of FISV spent more than three months failing to breakout over resistance at the $50.00 level. Now the stock is making lower highs and lower lows. There is potential support near $45.00 but I don't think it will hold. I'm suggesting bearish positions now. More patient traders could wait for a failed rally in the $47.50-48.00 zone. I would expect a bounce on the first touch at the $45 level. The P&F chart is bearish with a $41 target. I'm listing our exit target at $42.25. More aggressive traders could aim for the $40 level.

Suggested Options:
I'm suggesting the January puts. My preference is the $45 strike. The new symbology for the January $45 put is: FQV1016M45

BUY PUT JAN 45.00 FQV-MI open interest=983  current ask $1.20

Annotated Chart:

Picked on  November 28 at $ 46.29
Change since picked:       + 0.00
Earnings Date            02/02/10 (unconfirmed)
Average Daily Volume =        1.4 million  
Listed on  November 28, 2009