Editor's Note:

There are plenty of bullish-looking trading candidates with the market in a multi-day bounce.

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) VMC, TMO, SWK, AAP, N, HAIN, BEN, YUM, VTR, INGR, HP, VC, HOG


NEW DIRECTIONAL CALL PLAYS

Family Dollar Stores - FDO - close: 70.10 change: +1.27

Stop Loss: 68.85
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Some of the retail names are showing strength and FDO is one of them. Traders have been buying the trend of higher lows for several weeks. Now that trend has changed with the recent surged toward resistance at $70.00. The big spike higher you see in FDO on the 19th of November was the same day the stock market produced a big bounce higher. There was very little profit taking once it hit $70 and now FDO is pushing past this key level.

I want to see a little bit more confirmation so I am suggesting a trigger to buy calls at $70.25. If triggered our target is $74.50. More aggressive traders may want to aim higher. The Point & Figure chart is currently bearish but a move above $71.00 would create a brand new triple-top breakout buy signal.

Trigger @ 70.25

- Suggested Positions -

buy the 2013 Jan $72.50 call (FDO1319a72.5) current ask $1.65

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.2 million
Listed on November 24, 2012


Whirlpool Corp. - WHR - close: 102.73 change: +1.70

Stop Loss: 99.40
Target(s): 108.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Positive data on housing could help boost the current rally in WHR. Stronger home sales should mean more sales of appliances. Right now WHR has broken out past resistance near $100 to hit new 52-week highs.

I am suggesting small bullish positions now (Monday morning). More nimble traders may want to wait for a dip into the $101.50-100.00 zone instead. Broken resistance near $100.00 should be new support. Our multi-week target is $108.50.

- Suggested *Small* Positions -

buy the 2013 Jan $105 call (WHR1319a105) current ask $4.10

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 1.3 million
Listed on November 24, 2012