NEW BEARISH Plays

Ancestry.com Inc. - ACOM - close: 21.84 change: -2.16

Stop Loss: 24.35
Target(s): 18.75
Current Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
ACOM recently reported earnings that were four cents better than Wall Street's estimates. Revenues were inline. The company guided its Q4 revenues lower but tried to offset this negative news with a $50 million stock buy back program.

The larger trend is bearish. Short-term ACOM is churning in a $26-21 trading range. More conservative traders may want to use a trigger under $21.50 as their entry point. We are suggesting readers launch bearish positions now at the open tomorrow. We'll use a stop at $24.35, above today's high.

FYI: You might want to trade the put options instead of shorting the stock. The most recent data listed short interest at 20% of the small 31.5 million share float. That raises the risk of a short squeeze.

Suggested Position: short ACOM stock @ the open

- or -

buy the NOV $22.50 PUT (ACOM1119W22.5) current ask $1.80

Annotated chart:

Entry on October 28 at $ xx.xx
Earnings Date 10/26/11 (confirmed)
Average Daily Volume = 840 thousand
Listed on October 27, 2011


Dish Network - DISH - close: 25.44 change: -0.54

Stop Loss: 27.15
Target(s): 21.25
Current Gain/Loss: +0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
DISH has been underperforming the market for days. October has been one of the best months for the market on record. If DISH can't rally in this kind of environment then the path of least resistance is lower. Today saw DISH reverse under its 100-dma.

I am suggesting bearish positions now with a stop loss above the 100-dma (at 27.15). Our target is the $21.25 mark. FYI: The Point & Figure chart for DISH is bearish with a $16 target.

Suggested Position: short DISH stock @ the open

- or -

buy the NOV $25 PUT (DISH1119W25) current ask $1.20

Annotated chart:

Entry on October xx at $ xx.xx
Earnings Date 11/07/11 (confirmed)
Average Daily Volume = 3.0 million
Listed on October 27, 2011