NEW BEARISH Plays

Hewlett-Packard - HPQ - close: 13.85 change: -0.24

Stop Loss: 14.51
Target(s): 11.50
Current Gain/Loss: unopened

Entry on November xx at $ xx.xx
Listed on October 31, 2012
Time Frame: exit prior to the Nov. 20th earnings report
Average Daily Volume = 35.7 million
New Positions: Yes, see below

Company Description

Why We Like It:
The long, slow death spiral for HPQ stock continues. Shares have been drifting lower for three years now. Investors continue to worry about competition and margins for this technology behemoth. The stock has been churning sideways above support near $14.00 the last few weeks. Shares just broke that support today.

I am suggesting bearish positions at the open tomorrow. Our target is $11.50 but we will exit prior to the Nov. 20th earnings report.

Suggested Position: Short HPQ stock @ (the open)

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

buy the DEC $13 PUT (HPQ1222x13) current ask $0.49

Annotated chart:



Titanium Metals - TIE - close: 11.71 change: -0.11

Stop Loss: 12.25
Target(s): 10.75
Current Gain/Loss: unopened

Entry on November 01 at $ xx.xx
Listed on October 31, 2012
Time Frame: exit prior to the Nov. 7th earnings report (unconfirmed)
Average Daily Volume = 1.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
This is going to be a short-term trade. TIE has been trending lower since its peak in mid September. Now the stock has confirmed the breakdown under support at $12.00, under support at the 100-dma and under support near $11.80 (Oct. 15th low).

I am suggesting small bearish positions now with a stop loss at $12.25. Our target is $10.75 but we will exit prior to the Nov. 7th earnings report (that date is not confirmed yet).

*Small Bearish Positions*

Suggested Position: short TIE stock @ (the open)

Annotated chart: