Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) IR, HCN, DDD, IPHS, SYNC, JBSS, AMSG, JBHT

(bearish ideas) RUE


NEW BEARISH Plays

SanDisk Corp. - SNDK - close: 34.70 change: -0.71

Stop Loss: 35.35
Target(s): 31.25
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
SNDK is in the data storage and flash memory industries. The stock has seen a very sharp decline in the second quarter but the oversold bounce is rolling over (again). Now SNDK is flirting with a breakdown under support in the $35-34 zone.

Today's low was $34.00. I am suggesting a trigger to open bearish positions at $33.90. If triggered our target is the early June low. We'll plan to exit at $31.25. More aggressive traders could aim for the $30 level instead.

Trigger @ 33.90

Suggested Position: short SNDK stock @ (trigger)

- or -

buy the Jul $33 PUT (SNDK1221S33) current ask $0.95

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 07/19/12 (unconfirmed)
Average Daily Volume = 5.5 million
Listed on June 28, 2011