NEW BEARISH Plays

Goodrich Petrol. - GDP - close: 22.44 change: -1.50 stop: 25.26

Why We Like It:
Shares of GDP look bearish across multiple time frames. Today's decline broke support at $24.00 and its trendline of higher lows. I'm suggesting bearish positions now although more patient traders could wait for a bounce or failed rally near $24.00 again. The Point & Figure chart is bearish with a $10 target. I'm setting our first target at $20.25. Our second target is $18.50.

Warning - Readers need to be aware that I'm not the only one that thinks GDP is going lower. The most recent data listed short interest at more than 25% of the 24 million share float. That's a lot of interest and a small float, which equals high-risk! Instead of trying to short GDP you might want to consider put options, which have limited risk.

Annotated chart:

Entry on September 01 at $22.44 
Change since picked:     + 0.00   			
Earnings Date          11/04/09 (unconfirmed)    
Average Daily Volume:       524 thousand
Listed on September 01, 2009    


Northwest Pipe Co. - NWPX - close: 31.73 change: -1.50 stop: 33.55

Why We Like It:
NWPX is also breaking down. Shares fell through significant support near $33.00-32.50 today. Volume was double the norm. Unfortunately I think the volume is a hazard. NWPX has very low volume and a very small float. Short interest is about 5% of the float. We have a slightly elevated risk of a short squeeze. However, right now the trend is down and the decline should be ready to accelerate. I'm suggesting bearish positions now or on a failed rally near $32.50. Our first target is $28.00. Our second target is $25.50. The P&F chart is bearish with a $25 target. FYI: Instead of trying to short NWPX readers may want to consider buying put options, which have limited risk.

Annotated chart:

Entry on September 01 at $31.73 
Change since picked:     + 0.00   			
Earnings Date          10/22/09 (unconfirmed)    
Average Daily Volume:        57 thousand
Listed on September 01, 2009