Editor's Note:

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

(bearish ideas) TEN, GLNG, PAAS, AVAV, INFA, ETN, NUE


NEW BEARISH Plays

Endo Pharma. - ENDP - close: 33.84 change: -0.40

Stop Loss: 35.05
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:
ENDP is a specialty healthcare solutions company. It recently reported earnings and missed both the top and bottom line estimates. The stock has been trading with a bearish trend of lower highs and lower lows the last few weeks. Now ENDP is on the verge of breaking down from its simple 200-dma.

The low on Wednesday was $33.52. I am suggesting a trigger to open bearish positions at $33.45. Our target is $30.50. More aggressive traders could aim lower. The Point & Figure chart for ENDP is bearish with a $28 target.

Trigger @ $33.45

Suggested Position: short ENDP stock @ (trigger)

- or -

buy the May $35 put (ENDP1219Q35) current ask $1.85

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 05/01/12
Average Daily Volume = 1.4 million
Listed on May 5, 2011


Visteon Corp. - VC - close: 46.56 change: -1.05

Stop Loss: 48.25
Target(s): 40.50
Current Gain/Loss: unopened
Time Frame: 4 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
VC recently reported earnings and delivered a huge earnings miss. Revenues were also a miss. Management issued lowered guidance for 2012. The reaction in the stock price has produced a bearish reversal under resistance. Now VC is hovering above support at the $46.00 level.

I am suggesting a trigger to launch bearish positions at $45.75. If triggered we will aim for the $40.50 mark. FYI: The Point & Figure chart for VC is bearish with a $35 target.

NOTE: VC does have options but the bid/ask spread seems too wide to trade.

Trigger @ 45.75

Suggested Position: short VC stock @ (trigger)

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 05/02/12
Average Daily Volume = 513 thousand
Listed on May 5, 2011