Editor's Note:

The market is growing more bearish. If you're uncomfortable with shorting stocks there are plenty of inverse ETFs you could buy that will rise as the market declines. The PSQ and QID will work for the NASDAQ. The SH and SDS work for the S&P 500. The DOG and DXD work for the DJIA. The RWM and TWM work for the small cap Russell 2000 index. Some of these are ultra or double-short ETFs, which have increased volatility.


NEW BEARISH Plays

Emerging Market iShares - EEM - close: 37.57 change: -1.84 stop: 40.25

Why We Like It:
The U.S. rally in stocks off their 2009 lows has been impressive. The rally in some of the emerging markets has been even bigger. The EEM is breaking support and we want to try and catch the next leg down. I'm suggesting small position sizes to limit risk. Let's open a partial position now (25% your normal trade). If the EEM bounces and begins to roll over under $40.00 we'll double down by adding similar sized position.

Our first target to take profits is at $33.55. Our second target is $31.00.

Annotated chart:

Entry on   October 31 at $37.57 (1/4 position size)
Change since picked:     + 0.00   			
Earnings Date          --/--/-- 
Average Daily Volume:        77 million 
Listed on   October 31, 2009    


Ross Stores - ROST - close: 44.01 change: -0.59 stop: 46.55

Why We Like It:
ROST raised guidance back on October 8th and the stock briefly spiked over the $50.00 level. That proved to be a top for the stock. The consumer remains the Achilles heel in the economic recovery. With consumer spending flat or falling it could be tough for the retailers. Shares of ROST are breaking down. I'm suggesting bearish positions now. Our target to exit is $40.25. We will plan to close this play ahead of the earnings report.

Annotated chart:

Entry on   October 31 at $44.01 
Change since picked:     + 0.00   			
Earnings Date          11/19/09 (confirmed)    
Average Daily Volume:       2.1 million 
Listed on   October 31, 2009    


Seagate Technology - STX - close: 13.95 change: -0.63 stop: 15.55

Why We Like It:
STX is another hard-drive, data storage company. We already have WDC on the play list. Be careful that you don't put too much money into any one sector. Like WDC, shares of STX were big performers but now they're breaking down. I'm suggesting small bearish positions now (50% your normal trade size). If we see a failed rally under $15.00 we might consider doubling down to a full-sized trade.

Our first target is $12.05. Our second target is $10.50.

Annotated chart:

Entry on   October 31 at $13.95 (small positions 1/2)
Change since picked:     + 0.00   			
Earnings Date          10/21/09 (confirmed)    
Average Daily Volume:        13 million 
Listed on   October 31, 2009