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) RGR, TGT, AVD, DPS, IDA, CNL, SWX, RDEN, BABY, CPNO, PROJ, APOG, TRIB

(bearish ideas) NILE, WLL, SM,


NEW BEARISH Plays

TRW Automotive - TRW - close: 35.38 change: -1.27

Stop Loss: 37.20
Target(s): 30.50
Current Gain/Loss: unopened
Time Frame: exit prior to the July 31st earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
This auto parts maker is breaking down. The bearish trend of lower highs has just helped push TRW past support near $36.00. This breakdown should signal a new trend lower.

I am suggesting bearish positions at the open tomorrow morning. More conservative traders may want to wait for a little confirmation and look for TRW to trade below today's low (34.83) before initiating positions. Our target is $30.50. FYI: The Point & Figure chart for TRW is bearish with a $24 target.

Suggested Position: short TRW stock (the open)

- or -

buy the Aug $35 PUT (TRW1218T35) current ask $1.90

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 07/31/12 (confirmed)
Average Daily Volume = 949 thousand
Listed on July 10, 2011