Editor's Note:

FYI: If you're looking for a bearish candidate then check out shares of Yandex (YNDX). The oversold bounce just reversed at technical resistance. YNDX looks poised to drop but I would consider this an aggressive, higher-risk trade due to the stock's recent volatility.


U.S. Bancorp - USB - close: 32.17 change: -0.26

Stop Loss: 30.90
Target(s): 34.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The banking sector looks ready to rally out of its sideways consolidation over the last couple of weeks. USB could help lead the way higher. This stock has already broken out to new relative highs. Traders were buying the dip this afternoon near $32.00.

I am suggesting we use this dip as a bullish entry point. We'll use a trigger to open positions at $32.25 and use a stop loss at $30.90. More conservative traders could use a tighter stop near the 10-dma instead. Our target is $34.75 but more aggressive traders could aim higher.

Trigger @ 32.25

Suggested Position: buy USB stock @ (trigger)

- or -

buy the May $32 call (USB1219E32) current ask $0.63

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 07/18/12 (unconfirmed)
Average Daily Volume = 10.3 million
Listed on April 30, 2011