In addition to tonight's new candidate, consider these stocks as possible trading ideas:
N - looks tempting with a breakout past resistance near $42.00. Earnings are coming up on Feb. 2nd.
ADS - is showing relative strength today with a +1.5% gain and a breakout to new highs past $110. Earnings are coming up on Feb. 2nd.
BBBY - shares look like they are ready to challenge resistance near $64.00 again.
AGN - A rally past $90 might be a new bullish entry point. Earnings are coming up on Feb. 2nd.
BWLD - if you like to buy bounces off support then BWLD could be a potential trade for you. Shares just rebounded off their 200-dma after a four-week correction.
NOTE: Normally we want to avoid holding positions over an earnings announcement.
NEW DIRECTIONAL CALL PLAYS
Lufkin Industries - LUFK - close: 75.25 change: +2.56
Stop Loss: 73.40
Current Option Gain/Loss: Unopened
Time Frame: up to the Feb. 9th earnings report.
New Positions: Yes, see below
Why We Like It:
LUFK is in the basic materials sector but it serves the oil and energy industry. Shares have a multi-month bullish trend of higher lows. Yet over the last couple of weeks it has been churning sideways. There is resistance in the $76.50 area. I am suggesting a trigger to open bullish positions at $76.60 with a stop at $73.40. Our target is $82.00 but we want to exit prior to the Feb. 9th earnings report.
FYI: The Point & Figure chart for LUFK is bullish with an $85 target.
Trigger @ 76.60
- Suggested Positions -
buy the Feb $80 call (LUFK1218B80) current ask $1.90
Entry on January xx at $ xx.xx
Earnings Date 02/09/12 (confirmed)
Average Daily Volume = 300 thousand
Listed on January 24, 2012