NEW BEARISH Plays

Tidewater Inc. - TDW - close: 57.00 change: -1.07

Stop Loss: 60.10
Target(s): 52.00
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
Shares of this shipping stock have been struggling for weeks. After several months of gains in 2010 the stock appears to have topped out in early March of this year. Now TDW has a bearish trend of lower highs and lower lows. The stock just failed at resistance near $60 and its 50-dma on Monday.

More nimble and aggressive traders may want to go ahead and launch bearish positions now. I am suggesting we look for a little bounce first and I'm listing a trigger to launch positions at $57.75. If triggered we'll use a stop at $60.10 and our target is $52.00. I would keep positions small since the overall market's trend is still higher and that could make bearish trades challenging.

Trigger @ $57.75 (Small Positions)

Suggested Position: Short TDW stock @ 57.75

- or -

Buy the June $55 PUT (TDW1118R55)

Annotated chart:

Entry on May x at $xx.xx
Earnings Date 05/19/11 (unconfirmed)
Average Daily Volume: 502 thousand
Listed on May 3rd, 2011