Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), 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) MAN, GME, DISH, KOS, VIP


Smith & Wesson - SWHC - close: 10.85 change: +0.27

Stop Loss: 10.15
Target(s): 12.85
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 06, 2012
Time Frame: 9 to 12 weeks
Average Daily Volume = 2.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
2012 has been a banner year for SWHC. Shares have exploded higher as gun sales in the U.S. surge. Many citizens are worried that the White House will advance tighter gun control laws, which is driving record sales for the industry. Shares of SWHC are in a wide, bullish channel (see weekly chart). Shorter term the stock is bumping up against resistance near $11.00.

I am suggesting a trigger to open bullish positions at $11.05. More conservative traders could wait for a close over $11.25 instead as an alternative entry point. Our multi-week target is $12.85.

Trigger @ 11.05

Suggested Position: buy SWHC stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the 2013 Mar $12 call (SWHC1316c12) current ask $1.00

Weekly chart:

Annotated chart: