NEW BEARISH Plays

Arkansas Best - ABFS - close: 24.44 change: -1.22 stop: 27.05

Why We Like It:
ABFS just reported earnings this morning and missed the 27-cent estimate by 23 cents. As a trucking company, a big earnings miss like that that doesn't bode well as a sign of economic recovery. The stock sold and broke round-number support at $25.00 and technical support at the 200-dma. I am suggesting bearish positions now. More conservative traders may want to wait for ABFS to break the trendline of higher lows first (see chart). Shares could also see another oversold bounce back toward $26.00, which can be used as a bearish entry point. We'll start the play with a relatively wide stop loss at $27.05. More conservative traders might want to consider a stop closer to today's high (26.33). Our first target is $22.10. Our second target is $20.20.

Annotated chart:

Entry on      July 22 at $24.44 
Change since picked:     + 0.00   			
Earnings Date          07/22/09 (confirmed)    
Average Daily Volume:       800 thousand
Listed on  July 22, 2009    


Charles River Labs - CRL - close: 30.37 chg: -1.75 stop: 31.75

Why We Like It:
CRL under performed the market and the biotech sector with a 5.4% decline. I couldn't find any specific news to account for the sell-off. What you will notice is volume was almost four times the norm, which is definitely a bearish clue. Nimble traders might want to try launching bearish positions near $31.00 and its 50-dma. I'm suggesting readers wait for a new relative low under today's low of $29.82. Our entry point will be $29.75. If triggered our target is $26.25. The action over the last six weeks has produced a bearish head-and-shoulders pattern, which is forecasting a $26 target.

Annotated chart:

Entry on      July xx at $xx.xx <-- see TRIGGER  
Change since picked:     + 0.00   			
Earnings Date          08/04/09 (confirmed)    
Average Daily Volume:       459 thousand
Listed on  July 22, 2009    


Techne Corp. - TECH - close: 61.01 change: -0.54 stop: 63.05

Why We Like It:
It looks like the oversold bounce in TECH is finally failing. The stock pierced resistance at $62.00 and its 50 and 30-dma this morning only to reverse. This sort of failed rally pattern is an entry point for bearish positions. I'm listing a stop loss at $63.05 but more conservative traders could try a stop close to today's high (62.50). Our first target is $56.50.

Annotated chart:

Entry on      July 22 at $61.01 
Change since picked:     + 0.00   			
Earnings Date          08/04/09 (unconfirmed)    
Average Daily Volume:       138 thousand
Listed on  July 22, 2009