Editor's Note:

In addition to tonight's new trading candidates readers may want to check out the REIT and property/real estate stocks like ARE, AVB, ESS, JLL and SPG. This industry has been showing relative strength.


NEW DIRECTIONAL CALL PLAYS

Mettler Toledo - MTD - close: 103.03 change: +2.05 stop: 99.45

Why We Like It:
MTD is a healthcare instrument and supplies company. The stock has broken out past resistance near $100. Traders bought the dip back near $100 late last week. It looks like this rebound continues. I am suggesting small call positions now or on a dip back toward $100. We'll use a relatively tight stop loss at $99.45. Our first target is $109.00.

Suggested Options:
This should be a short-term trade. I'm suggesting the January calls. My preference is the $105 strike.

BUY CALL JAN 105 MTD-AA open interest= 79  current ask $2.00

Annotated Chart:

Entry  on  December 19 at $103.03 (small positions) 
Change since picked:       + 0.00
Earnings Date            02/04/10 (unconfirmed)
Average Daily Volume =        106 thousand
Listed on  December 19, 2009         


Whirlpool - WHR - close: 80.69 change: +1.53 stop: 74.99

Why We Like It:
Appliance maker WHR has been showing some relative strength. The stock broke out over key resistance at $80.00 on Friday. After more than six weeks of consolidating sideways the stock looks poised to run higher. I'm suggesting small call positions now with the stock above $80.00. We'll use a stop loss at $74.99. More cautious traders may want to consider a tighter stop loss. Our first target to take profits is at $84.75. Our second target is $89.00. FYI: The Point & Figure chart is bullish with a $103 target.

Suggested Options:
I would prefer to buy February options but they're not available yet. That leaves us March or January. I'm suggesting January calls with a preference for the $85 strike.

BUY CALL JAN 85.00 OFW-AQ open interest=2689 current ask $1.35

Annotated Chart:

Entry  on  December 19 at $ 80.69 
Change since picked:       + 0.00
Earnings Date            02/08/10 (unconfirmed)
Average Daily Volume =        1.6 million  
Listed on  December 19, 2009