In addition to tonight's new play these stocks caught my eye and might offer a trading opportunity.
HOG - Shares of Harley Davidson appear to be breaking out but I still see potential resistance near $40.00. This could be a bullish candidate soon.
DOW - Dow Chemical Co. has been showing relative strength and recent rallied past technical resistance at its 100-dma and exponential 200-dma. A close over $30.00 might be a bullish entry point.
PPO - Polypore Intl. Inc. has been underperforming and just broke down from a three-week consolidation. The $40.00 level might offer some support.
INFA - Informatica Corp. displayed relative weakness today with a drop to new 52-week lows. Will support hold at $35.00 or has the stock begun a new leg lower?
VSAT - ViaSat Inc. was a big winner in the fourth quarter last year. Yet the rally essentially stalled in December. If the stock breaks down under its 50-dma then it might see a correction back toward the 42-41 zone. Look for technical support at the 200-dma(s).
NEW BEARISH Plays
Target Corp. - TGT - close: 50.00 change: -1.12
Stop Loss: 51.30
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
Retail giant TGT has been underperforming the market this year (2012). Today was ugly with a -2.1% drop and a breakdown under short-term support near $51.00 and technical support at its 200-dma. Shares briefly traded under round-number support at $50.00. Investors appear to be worried about TGT's sales growth.
Several major retailers are scheduled to report their December same-store sales numbers tomorrow morning. Most analysts are expecting healthy overall sales growth but the question will be margins. This past holiday shopping season saw significant discounts to lure in shoppers. The retail stocks could see some volatility tomorrow.
I am suggesting we open small bearish positions in TGT if the stock trades at $49.45 or lower. The low today was $49.55. If triggered we'll aim for a drop to $46.05. FYI: The Point & Figure chart for TGT is bearish with a $45 target.
Trigger @ 49.45 (small positions)
Suggested Position: short TGT stock @ 49.45
- or -
buy the Feb $50 PUT (TGT1218B50)
Entry on January xx at $ xx.xx
Earnings Date 02/22/12 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on January 04, 2011