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) TTC, PLCE, AMRN, Z, AAWW, ADP, CMCSA, LBTYA

(bearish ideas) CHK, TZOO


NEW BEARISH Plays

Kellogg Co. - K - close: 48.07 change: +0.01

Stop Loss: 48.55
Target(s): 44.25
Current Gain/Loss: unopened
Time Frame: exit prior to Aug. 2nd earnings
New Positions: Yes, see below

Company Description

Why We Like It:
Rising commodity prices, especially corn, which hit a new high today, does not bode well for companies like Kellogg. Granted, K probably hedges some of its commodity exposure but rising input costs should pressure margins.

The stock is in a bearish decline and testing major support near $48.00. The early June low was $47.88. I am suggesting a trigger to launch bearish positions at $47.75. Our target is $44.25.

Trigger @ 47.75

Suggested Position: short K stock @ (trigger)

- or -

buy the Aug $47.50 PUT (K1218T47.5) current ask $0.75

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 08/02/12 (confirmed)
Average Daily Volume = 1.6 million
Listed on July 19, 2011