Editor's Note:

In addition to tonight's new play these stocks caught my eye and might offer a short-term trading opportunity. You'll notice these stocks are were all showing relative strength today.




Cisco Systems Inc. - CSCO - close: 19.15 change: +0.08

Stop Loss: 18.60
Target(s): 20.75
Current Gain/Loss: unopened
Time Frame: up to CSCO's February earnings
New Positions: Yes, see below

Company Description

Why We Like It:
Networking giant CSCO is on the verge of breaking out past resistance near its late 2011 highs. I am suggesting at trigger to open bullish positions at $19.35. We want to ride the stock up to its early February earnings report but exit prior to the announcement. FYI: The Point & Figure chart for CSCO is bullish with a long-term $27.00 target.

Trigger @ 19.35

Suggested Position: buy CSCO stock @ 19.35

- or -

buy the Feb $20 call (CSCO1218B20) current ask $0.40

Annotated chart:

Entry on January xx at $ xx.xx
Earnings Date 02/08/12 (confirmed)
Average Daily Volume = 39.0 million
Listed on January 12, 2011