Editor's Note:

In addition to tonight's new play these stocks caught my eye and might offer an opportunity. Check them out:

JBHT - This transport stock looks like it's about ready to breakout over resistance at $44.00. A move past this level could be a bullish entry point however I would be very cautious buying transports with oil prices still marching higher.

IT - Shares just broke out above some short-term resistance and now they're testing the $40.00 level. IT doesn't move very fast but it has a very consistent up trend.

NATI - This company makes measurement and automation products. After two months of consolidating sideways a breakout past $32.25 might be a bullish entry point.

CRK - This oil stock has some catching up to do. Readers might want to buy dips on this stock.

- James


Polycom Inc. - PLCM - close: 50.38 change: +0.19

Stop Loss: 46.90
Target(s): 54.85,
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description:
Polycom, Inc. is a global leader in unified communications solutions with industry-leading telepresence, video, voice and infrastructure solutions built on open standards. Polycom powers smarter conversations, transforming lives and businesses worldwide (source: company press release or website)

Why We Like It:
This tech stock has bee pretty resilient during the market's recent weakness. Traders continue to buy the dips and the stock is building on its bullish trend of higher lows. Shares just broke out and closed above round-number resistance at $50.00 while the rest of the market was drifting lower on Tuesday.

I am suggesting small bullish positions now at current levels with a stop loss at $46.90. However, you may want to consider a couple of alternatives. Readers might want to wait for PLCM to rally past the March 16th high of $50.87 before initiating new bullish positions. Plus, more conservative traders might want to raise their stops closer to the $48.00 level, which should be short-term support. Our upside target is $54.85. I would be tempted to aim higher but we want to exit ahead of the late April earnings report.

FYI: The Point & Figure chart for PLCM is bullish with a $75 target.

- Open Small Bullish Positions -

Suggested Position: Buy PLCM stock @ current levels

- or -

Buy the May $52.50 calls (PLCM1121E52.5) current ask $2.15

Annotated chart:

Entry on March x at $xx.xx
Earnings Date 04/21/11 (unconfirmed)
Average Daily Volume: 967 thousand
Listed on March 22nd, 2011