Editor's Note:

Tonight we've got a trade for both the bulls and the bears. Plus, a watch list of additional candidates.

HMSY - shares look bullish and a breakout past $67 could be an entry point. Keep in mind that HMSY doesn't move very fast.

SLG - This stock tagged new two-year highs today. The relative strength is encouraging and the next level of resistance could be $80.

QSII - This tech stock also tagged new highs today. A move past $75 or a bounce near $70 might be an entry point.

ROST - This retailer is holding up pretty well. A close over resistance near $66 might be an entry point.

FISV - This stock was showing relative strength today and set new all-time highs.

CTXS - This tech stock broke down last week. Shares are not seeing much of a bounce. The path of least resistance could be down!

- James


NEW DIRECTIONAL CALL PLAYS

FactSet Research Systems - FDS - close: 96.98 change: +0.88

Stop Loss: 94.75
Target(s): 99.90, 103.50
Current Option Gain/Loss: + 0.0%
Time Frame: 2 to 3 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market refuses to correct. There is a growing chance that stocks could see some month end window dressing. If that's the case then we want to play some momentum stocks for the next few days. FDS looks like a bullish candidate. Shares broke out of their consolidation last week and have since retraced to test prior resistance as support. I'm suggesting small bullish positions now. Our first target to take profits is at $99.90.
The Point & Figure chart for FDS is bullish with a $105 target.

Open Small Positions Now.

Buy the 2011 February $95 call (FDS1119B95) current ask $3.50

- or -

Buy the 2011 February $100 call (FDS1119B100) current ask $0.90

Annotated Chart:

Entry on January 25th at $ xx.xx
Earnings Date 03/16/11 (unconfirmed)
Average Daily Volume = 181 thousand
Listed on January 24th, 2010


NEW DIRECTIONAL PUT PLAYS

Monsanto Co. - MON - close: 71.12 change: +1.01

Stop Loss: 75.51
Target(s): 69.00, 66.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The action in MON last week produced a bearish reversal pattern. I am tempted to buy put options right here but I suspect the market might see one more push higher. Therefore I'm suggesting we wait and use a trigger to buy puts at $73.00. The recent high was $75.34 so we'll put our stop loss at $75.51. If triggered at $73.00 we'll target a drop to $69.00 and $66.00.

Trigger to buy PUTS @ $73.00

- Suggested Positions -

Buy the 2011 February $70 PUT (FDS1119N70) -only four weeks left

- or -

Buy the 2011 March $70 PUT (FDS1119O70)

Annotated Chart:

Entry on January xxth at $ xx.xx
Earnings Date 03/31/11 (unconfirmed)
Average Daily Volume = 6.2 million
Listed on January 24th, 2010