Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) COG, TGH, MTN, MDC, VRSN, ACIW, EBAY

(bearish ideas) DRC, GG, SA, BC, AAWW


Zumiez, Inc. - ZUMZ - close: 39.27 change: +1.35

Stop Loss: 38.40
Target(s): 44.00
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this action sports related apparel company could see a short squeeze. The stock has been able to maintain its longer-term up trend of higher lows. Plus, the most recent data listed short interest at 19.4% of the very small 22.3 million share float.

Traders bought the dip yesterday near its 30 and 5-dma. Today the follow through bounce added +3.5% to outperform the market. I am suggesting a trigger to launch bullish positions at $40.05. We'll aim for $44.00.

Trigger @ 40.05

Suggested Position: buy ZUMZ stock @ (trigger)

- or -

buy the Aug $45 call (ZUMZ1218H45) current ask $1.05

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 08/23/12 (unconfirmed)
Average Daily Volume = 531 thousand
Listed on June 26, 2011