NEW BEARISH Plays

Macy's - M - close 20.09 change +0.03 stop 21.70

Company Description:
Macy's, Inc. is a retail organization operating retail stores and Internet Websites under two brands (Macy's and Bloomingdale's) that sell a range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods in 45 states, the District of Columbia, Guam and Puerto Rico. As of January 30, 2010, the Company's operations were conducted through four retail operating divisions: Macy's, macys.com, Bloomingdale's and bloomingdales.com.

Target(s): 19.45, 18.90, 18.10
Key Support/Resistance Areas: 22.25, 21.25, 20.90, 20.25, 19.40, 18.00
Time Frame: 1 to 2 weeks

Comments:
M broke down today out of a descending triangle but was saved with a late day rally. The stock is hanging on to a thread and I do not see any reason why the stock will not continue its descent. The broader market may bounce higher but there is plenty of resistance overhead to keep M in check. I suggest we use $20.25 as a trigger to enter short positions. M should easily trade down to its 200-day SMA (currently at $19.36) which is below our first target of $19.45. This area may provide some support but if the selling picks up the next level of meaningful support is all the down near $18.00 which are highs from December. I am going to place a wide initial stop at $21.70 to account for volatility and will adjust it once we are in the position.

Suggested Position: Short M stock if it trades up near $20.25

Option Traders: Buy August $21.00 PUTS, current ask $1.95

Annotated chart:

Entry on June xx
Earnings 8/12/2010 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on June 23, 2010


Whirlpool Corp - WHR - close 97.71 change -0.23 stop 105.50

Company Description:
Whirlpool Corporation (Whirlpool) manufactures and markets a range of appliances and related products, primarily for home use. The Company's principal products are laundry appliances, refrigerators, cooking appliances, dishwashers, mixers and other small household appliances. It also produces hermetic compressors for refrigeration systems. Whirlpool manufactures products in 12 countries under 13 principal brand names and markets products worldwide. Whirlpool’s geographic segments consist of North America, Europe, Latin America and Asia.

Target(s): 95.10, 91.50, 86.05
Key Support/Resistance Areas: To Follow
Time Frame: 1 to 2 weeks

Comments:
WHR has been making lower highs and has broken many trend lines. The stock has one more trend line providing support from the July lows to the February lows. However, I think it only a matter of time before this is broken and the stock retests or breaks its recent lows near $91.50. WHR is also below its 20-day and 50-day SMA's and I think there is enough overhead resistance to enter short positions $98.80 which is below today's highs and the 20-day SMA. I am going to place a wide initial stop at $105.50 to account for volatility and will adjust it once we are in the position.

Suggested Position: Short WHR stock if it trades up near $98.80

Option Traders: Buy August $95.00 PUTS current ask $6.40, estimated ask at entry $5.90

Annotated chart:

Entry on June xx
Earnings 7/21/2010 (unconfirmed)
Average Daily Volume: 2 million
Listed on June 23, 2010