NEW BEARISH Plays

Centene Corp. - CNC - close: 37.02 change: -0.63

Stop Loss: 38.51
Target(s): 31.50
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 19, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 693 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CNC is a healthcare stock. Shares appear to have formed a bearish double top pattern with the highs in August and early September. Since then CNC has seen a breakdown under multiple layers of support. The stock is currently consolidating sideways but looks poised to resume the down trend.

I am suggesting a trigger to launch bearish positions at $36.75, which would be a new multi-week low. Our target is $31.50.

Trigger @ 36.75

Suggested Position: short CNC stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Oct $35 PUT (CNC1220v35) current ask $1.05

Annotated chart:



Con-way Inc. - CNW - close: 28.90 change: -0.07

Stop Loss: 30.05
Target(s): 25.05
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 19, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 787 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CNW is a trucking company and the transportation stocks have turned weak again. After six weeks of digesting its early August sell-off CNW now looks poised to begin the decline anew.

I am suggesting a trigger to open bearish positions at $28.70. We'll use a stop loss at $30.05. Our target is $25.05. More aggressive traders could aim lower. The Point & Figure chart for CNW is bearish with a $20 target.

Trigger @ 28.70

Suggested Position: short CNW stock @ (trigger)

- (or for more adventurous traders, try this option) -

buy the Oct $27.50 put (CNW1220v27.5) current ask $0.80

Annotated chart: