Editor's Note:

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

(bullish ideas)
MCK, PX, ATHN, ARG, ATK, SNA, TMO, ASH, DOV, TUP, SIAL, VMW, BYI, CREE, VAL, COP, NFG, NKE, FLR, WSM, DD, ABC, MDT, AIZ, STZ,



NEW DIRECTIONAL CALL PLAYS

Conns Inc. - CONN - close: 65.45 change: +0.35

Stop Loss: 64.40
Target(s): 74.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings in early September
New Positions: Yes, see below

Company Description

Why We Like It:
CONN is a specialty retailer focused on consumer electronics, appliances, and furniture. Retailers as a group struggled this past week but shares of CONN merely consolidated sideways while it digested previous gains. If the rally continues CONN could see more short covering. The most recent data listed short interest at more than 18% of the small 24.1 million share float.

If you look closely at CONN's chart you can see a very short-term trend of lower highs over the last few days. Traders may want to buy calls on a breakout past this trend (that would be about $66.20). I am suggesting we wait for a rally past the early August high of $66.58. We'll use a suggested entry trigger at $66.65. Our short-term target is $74.00. However, more conservative traders may want to exit near $70.00, which might be round-number resistance.

Trigger @ 66.65

- Suggested Positions -

Buy the Sep $70 call (CONN1321i70) current ask $2.35

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 394 thousand
Listed on August 10, 2013


Qihoo 360 Technology - QIHU - close: 69.16 change: +2.39

Stop Loss: 66.49
Target(s): 74.50
Current Option Gain/Loss: Unopened
Time Frame: 1 to 2 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
QIHU is a Chinese Internet stock. The company provides a number of software solutions including anti-virus software, Internet browsers, operating software and more. The stock has been extremely popular with the momentum trading crowd. QIHU is now up seven weeks in a row and has more than doubled in value from its spring 2013 lows.

This is an aggressive, higher-risk momentum trade. What makes QIHU even more risky is the time frame. The company is expected to report earnings some time in the August 20-24th time frame. There is no confirmed date yet. We do not want to hold over the announcement. That gives us about ten to fourteen days for this trade to work.

We are suggesting a trigger to buy small bullish positions at $70.25. If triggered our short-term target is $74.50. Traders could obviously aim higher. The Point & Figure chart for QIHU is bullish with an $84 target.

Trigger @ 70.25 *small positions, higher-risk trade*

- Suggested Positions -

Buy the Sep $75 call (QIHU1321i75) current ask $3.60

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 2.2 million
Listed on August 10, 2013


NEW LONGER-TERM TRADES

Vanguard FTSE Europe ETF - VGK - close: 53.09 change: +0.13

Stop Loss: 51.25
Target(s): 58.50
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to 2013 December option expiration
New Positions: Yes, see below

Company Description

Why We Like It:
This ETF tries to mimic the performance of the FTSE Developed Europe Index, which includes more than 500 common stocks of companies located in 17 European countries. If you haven't heard lately it seems that Wall Street is turning bullish on Europe. Essentially sentiment has been so bearish for so long that the recent uptick in economic data has inspired gush of bullish commentary on the region. Money flowing into European ETFs has definitely picked up, which would suggest investors are actually putting their money where their mouth is.

Major analyst firms like Bank of America's Merrill Lynch and Credit Suisse have both turned bullish on Europe. The improving economic data, notably the latest manufacturing PMI, is suggesting the worst may be behind Europe. Please don't take my comments for a swooning endorsement for Europe. I believe the region has plenty of problems. Most of the area remains in recession. Unemployment is terrible and is currently at all-time highs. Young-adult unemployment is atrocious. Europe has done little to solve their core problems. The recent improvement in economic data might be nothing more than an oversold bounce. However, it is hard to argue with the relative strength of the VGK, which just ended the week at a two-year closing high.

We are taking a multi-month time frame with this trade. I am suggesting we wait for the VGK to close above $53.50 and then buy calls the next morning. If we are triggered our target is $58.50 but we'll adjust it as the trade progresses.

FYI: The Point & Figure chart for VGK is bullish with a $63 target.

Trigger: Wait for a close above $53.50, then buy calls the next morning.

- Suggested Positions -

Buy the 2013 Dec $55 call (VGK1322L55) current ask $1.20

Annotated Chart:

Entry on August -- at $---.--
Average Daily Volume = 3.0 million
Listed on August 10, 2013