Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

BAS - shares could be a bearish candidate if the stock breaks down under its late October low ($15.53).

QCOR - this stock is showing relative strength with a breakout to new multi-week highs.

PKT - shares are also showing relative strength with a breakout to new multi-year highs.

IPCM - the breakdown in IPCM looks ugly here. A drop under the early March low (33.84) could be a bearish entry point.


NEW BEARISH Plays

Hi Tech Pharmacal - HITK - close: 35.07 change: -1.08

Stop Loss: 36.25
Target(s): 300-dma (moving target)
Current Gain/Loss: unopened
Time Frame: 2 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
HITK is a generic drug maker. The stock has been building a bearish trend over the last couple of months with lower highs and failed rallies. Now HITK is testing support near $35.00 and is about to test support at its simple 200-dma near $34.60.

Aggressive traders could launch bearish positions on a breakdown below $35.00. I am suggesting a trigger to launch bearish positions at $34.40. Our target is the simple 300-dma (currently at $31.05).

Trigger @ $34.40

Suggested Position: short HITK stock @ (trigger)

- or -

buy the Apr $35 PUT (HITK1221P35) current ask $0.95

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 155 thousand
Listed on April 09, 2011