Editor's Note:

In my search for potential trades tonight I ran across SSL and SFY. Both are in the energy sector and both are intriguing. SSL might be a trade over $52.75. I'd rather buy a dip in SFY.

- James


Vanguard National Res. - VNR - close: 32.05 change: +0.39

Stop Loss: 30.70
Target(s): 34.95
Current Gain/Loss: +0.0%
Time Frame: 1 week
New Positions: Yes, see below

Company Description

Why We Like It:
This is a short-term momentum trade. VNR was showing relative strength on Tuesday while the rest of the market was sinking. The stock closed at new all-time highs. It looks like VNR could be making a pre-earnings run. The company is due to report earnings in very early March. We will plan on exiting at the end of February so we only have a few days. I would open small bullish positions now or wait for a dip into the $31.50-31.00 zone. We'll use a stop loss just under the rising 30-dma. Keep your positions small to limit your risk.

open small bullish positions now

Suggested Position: buy GNR stock @ current levels

- or -

Buy the March $30 call (VNR1119C30) current ask $2.15

Annotated chart:

Entry on February 23 at $xx.xx
Earnings Date 03/01/11 (unconfirmed)
Average Daily Volume: 277 thousand
Listed on February 22nd, 2010