Editor's Note:

As the major indices continue to creep higher I continue to see plenty of bullish candidates. Yet I hesitate to load up the newsletter with a bunch of new plays with the major looking overbought and due for a pull back. We are adding a couple of new candidates tonight but readers should be cautious.

I'm providing a small list of additional stocks that caught my eye.

Check them out:

RIMM might be a candidate on a dip.

LRCX might be a trade above $36.00.

MS might be a trade above $30.50.

VIP and MBT both look like potential candidates right now.

PII continues to look bullish.


NEW DIRECTIONAL CALL PLAYS

Cognizant Technology - CTSH - close: 50.81 change: +0.52 stop: 48.95

Company Description:
Cognizant is a leading provider of information technology, consulting and business-process outsourcing services. In just 15 years, we’ve reached $3B [U.S.] in revenue, and climbing. We are dedicated to helping clients grow through our business-IT know-how, thoughtful innovation and global scale. (source: company press release or website)

Why We Like It:
Shares of CTSH broke out to new all-time highs on the first of March as stocks cleared their old highs and resistance dating back to 2007. Traders have been betting on technology stocks to lead the market higher and so far they've been right. Now after a six-day consolidation shares of CTSH look poised to move higher again. I am suggesting bullish positions now. I do feel that this is an aggressive trade because the NASDAQ looks so overbought and due for a correction. If the market does correct CTSH will likely pull back with it. Our initial target is $54.75. We'll use a stop loss at $48.95. FYI: Don't go overboard just because the option looks cheap. If CTSH does correct the value will vanish.

Suggested Position: BUY CALL APRIL $55 (CTSH 10D55.00) @ 0.45

Annotated Chart:

Entry on March 11th at $ xx.xx
Earnings Date 05/04/10
Average Daily Volume = 4.05 million
Listed on March 10th, 2010


NII Holdings Inc. - NIHD - close: 40.15 change: +1.26 stop: 37.90

Company Description:
NII Holdings, Inc. is one of the world's leading providers of fully integrated mobile communication services designed to meet the needs of businesses and individual customers in selected Latin American markets. Principal operations are in major business centers and related transportation corridors of Argentina, Brazil, Mexico, Peru, and Chile. Our corporate headquarters are located in Reston, Virginia USA. (source: company press release or website)

Why We Like It:
I have noticed that some of the telecom stocks have really been showing strength. Shares of NIHD don't look quite so overbought as some of its peers. Plus, the stock is breaking out over resistance at the $40.00 level. Readers can buy calls now and we'll use a stop loss at $37.90. Our first target is the $44.00 level.

Suggested Position: BUY CALL APRIL $40 (NIHD 10D40.00) @ $2.00

Annotated Chart:

Entry on March xxth at $ xx.xx
Earnings Date 04/22/10
Average Daily Volume = 2.68 million
Listed on March 10th, 2010