BB& T Corp. - BBT - close: 27.47 change: +0.78

Stop Loss: 25.80
Target(s): 29.90
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Financial stocks continue to lead the market higher. I want to add another bank to our newsletter to increase our exposure to this sector. BBT has just spent the last couple of weeks consolidating sideways between support at $26.00 and resistance at its 200-dma. Today saw a breakout over technical resistance at the 200-dma. There is still some resistance near $27.60 at the mid December high. More conservative traders may want to wait for BBT to clear the $27.60 level before considering new positions. The mid December low was $25.84 so I'm setting our stop at $25.80. Keep your position size small to limit your risk. Our first target is $29.90. We will have to decide whether or not we want to hold over BBT's earnings in late January.

Open Bullish Positions Now (small positions only)

Suggested Position: BBT stock @ current levels.

- or -

Buy the 2011 February $28.00 calls (BBT1119B28) current ask $0.96

Annotated chart:

Entry on January 6 at $xx.xx
Earnings Date 01/21/11 (confirmed)
Average Daily Volume: 6.4 million
Listed on January 5th, 2010