Editor's Note:

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

(bullish ideas) CRI, AMT, MMS, WST, LL,

(bearish ideas) JCP, BTU, TRW, FIO, HAL, FWLT, ITRI, RIMM, PTEN, DWSN


NEW BEARISH Plays

American Railcar Ind. - ARII - close: 22.05 change: -0.89

Stop Loss: 24.05
Target(s): 20.05 or 18.55
Current Gain/Loss: + 0.0%
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The big spike higher in late April was investor reaction to ARII's better than expected earnings news. Yet there was no follow through on the rally. The stock has corrected lower almost three weeks in a row. Now ARII is breaking major technical support at its 200-dma and 300-dma.

I am suggesting new bearish positions tomorrow at the opening bell. We'll use a wide stop loss at $24.05. I'm setting two targets. Our conservative target is $20.05. Our aggressive target is $18.55. FYI: The Point & Figure chart for ARII is bearish with a long-term $14.00 target.

Suggested Position: short ARII stock @ (the open)

Annotated chart:

Entry on May xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 108 thousand
Listed on May 15, 2011