Editor's Note:

In my search for possible trades this weekend I noticed a lot of stocks with potential. You'll need to dig a little deeper but these stocks caught my eye as potential bullish trades.

If they have earnings coming up, I suggest you wait until after we see the market's reaction to the earnings news.

CTXS - earnings on April 27th, I'd be tempted to buy calls on a move over $75.50 or a new high over $77.00.

DLTR - earnings in mid May, DLTR might be a candidate on a move past $58.00.

SIVB - earnings could be this week, SIVB is not seeing the same weakness the rest of the banking sector is. The stock could be a buy right now.

TECH - earnings in early May. Traders could buy Friday's bounce or wait for a move over $75.00.

IDXX - earnings on April 21st, A rally past resistance at $80.00 could be an entry point.

DECK - earnings could be this week. A rally past $95.50 or a dip near $91.00 might be a bullish entry point (target the $99-100 area).

BCR - earnings on April 21st, BCR looks like a buy right now or better yet, wait for a dip near $101.

GWW - earnings on April 18th, The $140 level should be support. Do you buy it now or wait for a dip. Definitely wait for the earnings news.

BTU - earnings on April 19th, BTU is poised to bounce or break significant support.

Plus, readers may want to check out the REIT industry. Most of the REIT stocks I saw this weekend have been showing some relative strength.

- James


NEW DIRECTIONAL CALL PLAYS

Church & Dwight Co. Inc. - CHD - close: 80.86 change: +0.91

Stop Loss: 79.45
Target(s): 84.75, 89.00
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see Trigger

Company Description

Why We Like It:
CHD is a consumer goods company that makes a number of household cleaning, personal care, and specialty products. The stock has been very resilient the last four weeks with a sideways consolidation near its highs. Now the stock has rallied to the top of its trading range and resistance at its all-time highs near $81.00. A breakout from here could portend a move toward $85, $90 and beyond.

I do consider an aggressive trade because CHD doesn't have a lot of option volume and the spreads on its options are relatively wide. Keep your position size small to limit your risk.

I am suggesting a trigger to buy calls at $81.35. If triggered we'll use a stop loss at $79.45.

Trigger @ $81.35 (Small Positions Only!)

- Suggested Positions -

Buy the May $85 call (CHD1121E85) current ask $0.35

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 05/10/11 (unconfirmed)
Average Daily Volume = 390 thousand
Listed on April 16th, 2011


Rockwell Automation - ROK - close: 93.05 change: +1.07

Stop Loss: 90.45
Target(s): 99.50
Current Option Gain/Loss: Unopened
Time Frame: six trading days
New Positions: Yes, see Trigger

Company Description

Why We Like It:
ROK is a domestic manufacturing company in the industrial goods sector. It looks like the correction is over and shares are trying to bounce from support. Aggressive traders may want to go ahead and buy calls now. I want to see a little more confirmation because the action in early April has created a bearish reversal pattern on its weekly chart. The action last week doesn't really confirm the bearish reversal but it doesn't refute it either.

The patterns on the weekly chart would suggest this is an aggressive, higher-risk trade. Plus, we have a very short time frame. ROK reports earnings in several days and we don't want to hold over the announcement. I am suggesting we open small bullish positions at $93.75. If triggered our exit target is $99.50. More conservative traders could exit around $97.50 instead since the current high is just under $98.00.

Trigger @ $93.75 (Small Positions)

- Suggested Positions -

Buy the May $95 calls (ROK1121E95) current ask $2.50

Annotated Chart:

Entry on April xxth at $ xx.xx
Earnings Date 04/27/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on April 16th, 2011