Editor's Note:

The stock market's intermediate trend is down. Yet the S&P 500 has not yet broken long-term support at the 200-dma nor one its key trendlines of higher lows in the 1260-1250 area. The index could go either way here. Stocks might bounce on end-of-quarter window dressing, or they could churn sideways as investors wait for the beginning of Q2 earnings season, or they could renew the correction lower.

Whatever your bias I would take a cautious approach to new positions. In addition to tonight's new candidates I'm presenting a list of stocks that might offer some opportunity.

DD - shares have been showing some relative strength. A rally past $52.00 or the 50-dma might be a new bullish entry point.

HANS - there has been no slow down in the rally for this beverage stock. Shares are overbought and need to pull back. Don't chase it.

HOG - I can not imagine that HOG's business can be that strong given this weak economy but maybe baby boomers are splurging on motorcycles. The long-term trend from its 2009 lows is still up and short-term HOG is bouncing from support near $35 and its 200-dma.

EXPE - shares continue to build on their up trend. A dip near $27.50 or a rally past $28.80 might be a new bullish entry point.

AMP - After two weeks of consolidating sideways under their 200-dma AMP looks poised to continue lower.

EXPD - the oversold bounce is reversing. This could be a new bearish entry point. Use a tight stop loss.

VTR - The failed rally at $54.00 this past week looks like a new bearish entry point. VTR still has some support near $51.00.

NTAP - The stock has been failing at its 50-dma. The drop on Friday looks like a new bearish entry point. I am concerned that NTAP could still have support at its long-term trendline of higher lows (look at a weekly chart).

RTN - Shares look like a bearish trade right here. They just broke support near $48 and a significant trendline of higher lows.

STT - Financial stocks continue to drift lower. You could launch positions now with a stop above Wednesday's high or wait for a new relative low under $42.00.

FIS - Shares look a little short-term oversold here but a breakdown under $30.00 and its 200-dma may be a new bearish entry point.

BBT - A drop under $25.20 or a failed rally near the 50-dma could be a new bearish entry point.

AKS - A move under $14.00 or the May low might be a new bearish entry point.

MAS - the action on Friday looks like a new bearish entry point. Consider a stop above Wednesday's high.

MRO - This oil stock looks poised to breakdown after months of churning sideways. However, the company will soon spin-off Marathon Petroleum (MPC) and we don't know how shares of MRO will react to this event.

Additional stocks that caught my eye: IVZ, GE, FTI, RF,

- James


NEW BEARISH Plays

Ingersoll-Rand - IR - close: 43.13 change: -1.41

Stop Loss: 45.25
Target(s): 40.25, 37.50
Current Gain/Loss: + 0.0%
Time Frame: 3 to 5 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
IR suffered huge declines in early June and broke several layers of support. The oversold bounce has been very meager and shares just failed near resistance at $45 and its 200-dma this past week. Friday's drop looks like a new entry point for bearish positions. I am suggesting small bearish positions now with a stop loss at $45.25. Our targets are $40.25 and $37.50. More aggressive traders could aim lower but we do not want to hold over the late July earnings report. FYI: The Point & Figure chart for IR is bearish with a $33 target.

NOTE: IR's August options do not have much volume or open interest. Prices could be erratic.

- open small positions now -

Suggested Position: short IR stock @ current levels

- or -

buy the AUG. $40 PUT (IR1120T40) current ask $1.05

Annotated chart:

Entry on June 27 at $xx.xx
Earnings Date 07/25/11 (unconfirmed)
Average Daily Volume: 3.0 million
Listed on June 25, 2011


Xerox Corp. - XRX - close: 9.89 change: -0.18

Stop Loss: 10.40
Target(s): 9.25, 9.00
Current Gain/Loss: + 0.0%
Time Frame: 4 to 5 weeks
New Positions: see below

Company Description

Why We Like It:
XRX has been stuck in a trend of lower highs and lower lows for months. Shares just produced another lower high this past week near its 50-dma. I am suggesting bearish positions now but we want to keep our position size small. The actual trendline of lower highs is closer to the simple 100-dma near $10.37. I'm setting our stop loss at $10.40. More conservative traders could reduce their risk and use a stop closer to Wednesday's high near $10.17 instead.

I'm setting our targets at $9.25 and $9.00. More conservative traders may want to take profits early at $9.40 instead. We do not want to hold over the late July earnings report.

- open small positions now -

Suggested Position: short XRX stock @ current levels

- or -

Buy the August $9.00 PUT (XRX1120T9) current ask $0.21

Annotated chart:

Entry on June 27 at $xx.xx
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 11.7 million
Listed on June 25, 2011