Editor's Note:

In addition to tonight's new play these stocks caught my eye and might offer a trading opportunity.

NANO - This tech stock is breaking out past resistance near $18.00.

STX - This is another tech stock that is showing relative strength and is breaking out past some short-term resistance.

TDC - The oversold bounce has stalled and TDC is beginning to roll over again. Friday's drop could be a new bearish entry point.

-James


NEW BEARISH Plays

Netgear Inc. - NTGR - close: 33.57 change: -0.60

Stop Loss: 34.60
Target(s): 30.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of NTGR have been struggling with a bearish trend of lower highs and lower lows almost the entire month of December. While technically the 50-dma's upward cross above the 200-dma is bullish the price action is telling a different story. NTGR is on the verge of a new breakdown from the $33.50-38.00 range.

The exponential 200-dma is at $33.24. I am suggesting a trigger to open bearish positions at $33.20 with a stop loss at $34.60. Our target is the $30.25 mark. More aggressive traders could aim lower.

FYI: The Point & Figure chart for NTGR is still bullish but a drop under $33.00 would produce a new sell signal.

Trigger @ 33.20

Suggested Position: short NTGR stock @ 33.20

- or -

buy the Jan $32 PUT (NTGR1221M32) ask $0.95

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 317 thousand
Listed on December 31, 2011