NEW BEARISH Plays

Aetna Inc. - AET - close: 38.77 change: -1.08

Stop Loss: 40.10
Target(s): 35.10
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It looks like some of the healthcare insurance stocks are sinking following the Supreme Court's ruling this past week. Investors are worried that the Affordable Healthcare Act's regulations might eat into company profits. Shares of AET really underperformed on Friday.

The low on Friday was $38.52. I am suggesting a trigger to open bearish positions at $38.45. Our first target is $35.10.
FYI: The Point & Figure chart for AET is bearish with a $29 target.

Trigger @ 38.45

Suggested Position: short AET stock @ (trigger)

- or -

buy the Aug $38 PUT (AET1218T38) current ask $1.59

Annotated chart:

Weekly chart:

Entry on June xx at $ xx.xx
Earnings Date 07/31/12 (unconfirmed)
Average Daily Volume = 6.0 million
Listed on June 30, 2011


First Solar Inc. - FSLR - close: 15.06 change: +0.31

Stop Loss: 15.51
Target(s): 12.00, 10.50
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
The stock market produced a pretty big rally on Friday and yet FSLR failed to breakout past resistance at the simple 50-dma. We suspect that FSLR is going to roll over and resume its down trend lower.

There has been some short-term support near $14.50. We are suggesting a trigger to launch bearish positions at $14.40. We'll set two targets. Our first target is $12.00. Our longer-term, more aggressive target is $10.50.

Trigger @ 14.40

Suggested Position: short FSLR stock @ (trigger)

- or -

buy the Aug $14 PUT (FSLR1218T14) current ask $1.40

Annotated chart:

Entry on June xx at $ xx.xx
Earnings Date 08/02/12 (unconfirmed)
Average Daily Volume = 7.3 million
Listed on June 30, 2011