In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:
QQQ, CNX, JNPR, URI, VRX, CLF, OC, NFX, FAST.
NEW BEARISH Plays
Allegheny Technologies - ATI - close: 28.57 change: -1.73
Stop Loss: 31.01
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
Steel-related names were big underperformers today. Investors are worried that a slowing global economy will be less demand for metals and steel products. ATI has a bearish trend of lower highs and lower lows with short-term technical resistance at its 10-dma.
You can see on the chart that the dotted trend line could be potential support but there is no guarantee ATI will bounce there if the market accelerates lower.
I am suggesting small bearish positions at the open tomorrow. We'll use a stop loss above today's high. Our short-term target is $25.25.
* Small Positions *
Suggested Position: short ATI stock @ (the open)
- or -
Buy the Jul $27.50 put (ATI1221S27.5) current ask $1.55
Entry on June xx at $ xx.xx
Earnings Date 07/25/12 (unconfirmed)
Average Daily Volume = 1.98 million
Listed on June 11, 2011