NEW BEARISH Plays

CNH Global NV - CNH - close: 34.53 change: -1.07

Stop Loss: 36.05
Target(s): 30.25
Current Gain/Loss: unopened
Time Frame: exit prior to the Aug. 1st earnings report
New Positions: Yes, see below

Company Description

Why We Like It:
CNH makes agriculture and construction equipment. The situation looks ugly for CNH. 2012 has produced a big bearish double top in the stock price. Now shares are breaking down under key support near $35.00. I would be tempted to short the stock right now. However, CNH's rival Caterpillar (CAT) is scheduled to report earnings tomorrow morning (July 25th) before the opening bell. CAT's results could have a big impact on shares of CNH.

I am suggesting a trigger to open bearish positions at $34.25. If triggered our target is $30.25. FYI: The Point & Figure chart for CNH is bearish with a $26.00 target.

Trigger @ 34.25

Suggested Position: short CNH stock @ (trigger)

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 08/01/12 (confirmed)
Average Daily Volume = 528 thousand
Listed on July 24, 2011