Editor's Note:

In addition to tonight's new candidate (WFMI) these stocks also caught my eye as potential bullish candidates: AA, BAC, EBAY, HPQ, NWSA

- James


Whole Foods Market, Inc. - WFMI - close: 52.91 change: +1.20

Stop Loss: 49.95
Target(s): 57.50, 59.90
Current Gain/Loss: + 0.0%
Time Frame: Just a few days
New Positions: Yes, see below

Company Description

Why We Like It:
WFMI has spent the last half January consolidating its prior gains. Friday's big market drop only pushed WFMI toward support near $50.00. Now shares are on the rebound again. This stock could see a pre-earnings rally. WFMI is due to report earnings on Feb. 9th and we want to exit just before the announcement. I'm suggesting small bullish positions now, at current levels, with a stop at $49.95. There is potential resistance near the 2007 highs around $53.50 but a move past that level could spark some short covering. I am listing our exit targets at $57.50 and $59.90.
FYI: The Point & Figure chart for WFMI is bullish with an $86 target.

- Small Positions Now -

Suggested Position: buy WFMI stock @ current levels

- or -

Buy the February $55 calls (WFMI1119B55) current ask $1.53

Annotated chart:

Entry on February 2 at $xx.xx
Earnings Date 02/09/11 (confirmed)
Average Daily Volume: 1.8 million
Listed on February 1st, 2010