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:
SPB, HFC, BTE, GPX, AIG, STX
NEW BEARISH Plays
FARO Technologies - FARO - close: 34.70 change: -1.19
Stop Loss: 36.55
Current Gain/Loss: + 0.0%
Entry on August 14 at $ xx.xx
Listed on August 13, 2011
Time Frame: 3 to 4 weeks
Average Daily Volume = 238 thousand
New Positions: Yes, see below
Why We Like It:
Sometimes the market does not make sense. This morning FARO announced that a jury ruled in FARO's favor in its patent case against Nikon. Yet the stock only saw a 10-minute rally before immediately reversing and underperforming the market today.
The larger trend in the stock was already bearish. Now it looks like the oversold bounce is reversing lower. I am suggesting bearish positions at the open tomorrow. We'll use a stop above today's high. Our target is $30.25.
FYI: The Point & Figure chart for FARO is bearish with a long-term $21.00 target.
(launch positions at the open)
Suggested Position: short FARO stock @ (the open)
- or -
buy the Sept $35 PUT (FARO1222u35) current ask $2.35