Editor's Note:

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

(bullish ideas) VTUS, DG, ACC, ARBA, CREE,

(bearish ideas) CAB, PAAS, HFC, YNDX, PLCE,


NEW BEARISH Plays

Tesoro Corp. - TSO - close: 21.74 change: -0.25

Stop Loss: 23.25
Target(s): 18.25
Current Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The oil refining stocks have been underperforming the market for weeks after they topped out in mid March. In the month of April TSO had been digesting its losses in a sideways consolidation in the $22.50-24.00 area. The stock recently broke down from this trading range and looks ready to resume its down trend.

I am suggesting bearish positions now. There is possible support at the $20.00 mark but we are aiming for $18.25. This is a multi-week trade. We will start with a stop loss above the simple 20-dma. FYI: The Point & Figure chart for TSO is bearish with a long-term $13.00 target.

Suggested Position: short TSO stock @ (the open)

- or -

buy the Jun $20 put (TSO1216R20) current ask $0.54

Annotated chart:

Entry on May 08 at $ xx.xx
Earnings Date 05/02/12
Average Daily Volume = 3.3 million
Listed on May 7, 2011