NEW BEARISH Plays

Lincoln National - LNC - close: 22.64 change: +0.91 stop: 23.51

Why We Like It:
Financials were a major part of the rally last week but it looks like the rally is losing steam. Shares of LNC have been struggling with new resistance in the $23.00-23.50 zone. The action on Friday looks like an aggressive entry point for bearish positions. I am calling this aggressive because the trend is clearly up and we're trying to call a top, which tends to be a hazardous past time. Fortunately, we can keep our risk relatively tight with a stop loss at $23.51. Our first target is $20.20 since the $20.00 level should be support.

Annotated chart:

Entry on    August 08 at $22.64 
Change since picked:     + 0.00   			
Earnings Date          10/28/09 (unconfirmed)    
Average Daily Volume:       7.4 million 
Listed on  August 08, 2009    


TJX Cos. Inc. - TJX - close: 35.48 change: +0.64 stop: 37.05

Why We Like It:
This is another aggressive bearish candidate. It's aggressive because the trend is up and we're only trying to scalp a few points. Plus, this is an aggressive trade because we're going to hear some earnings out of the retail sector this week. Their results will have a big influence on TJX. I like TJX as a bearish candidate but the rally has clearly reversed under resistance near $37.00. We can put a stop loss at $37.05 and target a retracement. I am setting our first target to take profits at $32.25. Our second target to exit is $30.50. We do not want to hold over the August 18th earnings report.

Trading note: I would exit about 75% of the position at $32.25.

Annotated chart:

Entry on    August 08 at $35.48 
Change since picked:     + 0.00   			
Earnings Date          08/18/09 (confirmed)    
Average Daily Volume:       5.4 million 
Listed on  August 08, 2009