So far so good. We've been bearish on the market. I'm expecting a dip for the S&P into the 1050-1035 zone. Tomorrow could be volatile as investors react to the January non-farm payrolls (jobs) report that comes out at 8:30 a.m. before the market opens. Don't be surprised if stocks gap open up or down.
Like I said earlier, I am bearish but I didn't want to load a bunch of new put plays on the newsletter and see them get stopped out if stocks pop on the jobs number. A few stocks I'm watching as potential bearish plays are: FISV, FWLT, ABT, ATVI (has earnings on Feb. 10th), and NYX. I really wanted to add NYX as a bearish play tonight but earnings are due out on Feb. 9th. We do not want to hold over an earnings report.
NEW BEARISH Plays
GATX Corp. - GMT - close: 25.95 change: -0.89 stop: 27.65
Why We Like It:
GMT is a rental and leasing service in the railroad, dry bulk, and industrial sectors. The stock saw a significant breakdown in January. The oversold bounce has failed at technical resistance near the 200-dma this week. Today's decline looks like a new entry point for bearish positions. More conservative traders could wait for just a little more confirmation first and use a move under $25.65 as their trigger to open positions.
Our first target is $23.15. Our second target is $21.00. It could take several weeks to get there.
Entry on February 04 at $25.95
Change since picked: + 0.00
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 467 thousand
Listed on February 04, 2009