Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), 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) OAK, CPHD, BMRN, NTAP, SSD, OFIX, ALKS,


NEW BEARISH Plays

Nu Skin Enterprises - NUS - close: 38.84 change: -0.08

Stop Loss: 41.05
Target(s): 35.25
Current Gain/Loss: + 0.0%

Entry on September 24 at $ xx.xx
Listed on September 22, 2011
Time Frame: 4 to 6 weeks
Average Daily Volume = 1.3 million
New Positions: Yes, see below

Company Description

Why We Like It:
NUS is in the personal care skin products business with an international network of independent sales people. Unfortunately for shareholders the stock looks pretty bearish. After a terrible plunge back in late April and early May, NUS has created new lower highs. Now the stock is breaking down under key support at the $40.00 mark.

I do consider this a more aggressive, higher-risk trade. There are already a lot of investors who are bearish on the stock. The most recent data listed short interest at 18% of the 51.9 million share float. That does raise our risk of a short squeeze so you may want to play the options to limit your risk to the cost of your option.

I am suggesting new bearish positions immediately on Monday morning. We'll use a stop loss at $41.05. Our initial target is $35.25 but more aggressive traders could definitely aim lower. The Point & Figure chart for NUS is bearish with a $23.00 target.

Suggested Position: short NUS stock @ (the open)

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

buy the Oct $35 PUT (NUS1220v35) current ask $1.25

Annotated chart:



Tempur Pedic Intl. - TPX - close: 30.10 change: -1.22

Stop Loss: 32.05
Target(s): 25.25
Current Gain/Loss: unopened

Entry on September xx at $ xx.xx
Listed on September 22, 2011
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
TPX is in the bed and mattress business. Shares saw a terrifying plunge from $85 to almost $20 in the second quarter this year. The company issued an earnings warning back in June that shaved -40% off the stock price. TPX managed to recoup about half of that June drop but now it's reversing lower again.

TPX has broken support near $31 and its 50-dma. I want to see a little confirmation. I am suggesting a trigger to open bearish positions at $29.75 with a stop loss at $32.05. Our target is $25.25. More aggressive traders could aim lower.

Trigger @ 29.75

Suggested Position: short TPX stock @ (trigger)

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

buy Oct $30 PUT (TPX1220v30) current ask $1.90

Annotated chart: