Editor's Note:

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

TK - Shares of TK may be forming a top. A drop under $34.00 could be used as a bearish entry point to scalp a couple of points.

UNT - This stock is breaking down under round-number support at the $40.00 level.

VRNT - A rally past last week's high could be a new bullish entry point.

NE & SDRL - These two oil drillers look like they might be forming a short-term bottom. I'd keep an eye on them for a bounce.


NEW BEARISH Plays

American Public Education - APEI - close: 35.15 change: -0.61

Stop Loss: 37.05
Target(s): 31.00
Current Gain/Loss: unopened
Time Frame: up to its May 10th earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
APEI provides postsecondary education. The stock has been sinking under a bearish trend of lower highs and lower lows since its peak in January. Now APEI is testing round-number support at $35.00. If shares breakdown here it could herald a drop toward its October 2011 lows.

I am suggesting small bearish positions if APEI can trade at $34.75 or lower. Our exit target is $31.00 but we do not want to hold over the May 10th earnings report. Please note that we want to keep our position size small. This is a higher-risk trade. Lots of investors think APEI is going lower and the most recent data listed short interest at 20% of the very small 16.8 million share float. That does raise the risk of a short squeeze. You may want to limit your exposure by trading options.

Trigger @ $34.75 (small positions)

Suggested Position: short APEI stock @ (trigger)

- or -

buy the May $35 PUT (APEI1219Q35) current ask $2.10

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date 05/10/12 (unconfirmed)
Average Daily Volume = 202 thousand
Listed on April 18, 2011