NEW BEARISH Plays
Eaton Corp. - ETN - close: 39.23 change: -0.67
Stop Loss: 40.35
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks
New Positions: Yes, see below
Why We Like It:
ETN is in the industrial goods sector. Shares appear to be stuck in a multi-month bearish trend of lower highs and lower lows. The stock recently broke down under the $40.00 mark and spent a few days consolidating sideways. Now ETN has resumed its down trend.
I am suggesting bearish positions at the open tomorrow. Yesterday's high was $40.25. We'll start with a stop loss at $40.35. Our exit target is $35.25.
FYI: The Point & Figure chart for ETN is bearish with a $28 target.
Suggested Position: short ETN stock @ (the open)
- or -
buy the Jul $40 PUT (ETN1221S40) current ask $1.50
Entry on June xx at $ xx.xx
Earnings Date 07/23/12 (unconfirmed)
Average Daily Volume = 5.7 million
Listed on June 20, 2011