NEW BEARISH Plays

Honeywell Intl. - HON - close: 57.53 change: -2.02

Stop Loss: 60.15
Target(s): 54.00 & 200-dma
Current Gain/Loss: + 0.0%
Time Frame: 6 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of this industrial stocks were hammered lower for a -3.3% decline. In the last two trading days HON has failed at resistance near $60.00 and now fallen below its 50 and 100-dma. I am suggesting bearish positions now but we want to keep our position size small to limit our risk.

We'll use a stop loss at $60.15 and our targets are $54.00 and the simple 200-dma.

- Small Positions -

Suggested Position: short HON stock @ current levels

- or -

buy the July $55 PUT (HON1116S55) current ask $0.90

Annotated chart:

Entry on June 2 at $xx.xx
Earnings Date 07/22/11 (unconfirmed)
Average Daily Volume: 4.1 million
Listed on June 1st, 2011