NEW BEARISH Plays

AOL Inc. - AOL - close: 29.43 change: -0.37

Stop Loss: 30.51
Target(s): 25.50
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 29, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of AOL have consistently trended lower ever since it paid out that huge $5 special dividend in early December. Now shares of AOL are breaking down under key support near $30.00 and its 200-dma.

We are suggesting bearish positions on Monday morning. I do consider this a somewhat more aggressive trade because the latest data listed short interest at 14% of the 81.6 million share float. That might raise the risk of a short squeeze. Yet the stock is clearly breaking down.

Start positions on Monday morning. We're setting our stop loss at $30.51, which is above the 10-dma. Our multi-week target is $25.50.

Suggested Position: short AOL stock @ (the open)

Annotated chart:



Endo Health Solutions - ENDP - close: 25.60 change: -0.23

Stop Loss: 26.75
Target(s): 20.50
Current Gain/Loss: unopened

Entry on December xx at $ xx.xx
Listed on December 29, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.9 million
New Positions: Yes, see below

Company Description

Why We Like It:
2012 has not been a good year for shares of ENDP. This healthcare stock has been underperforming for months with a bearish trend of lower highs and lower lows. Now ENDP is breaking down through major support near $26.00. We want to see a little confirmation since ENDP has been bouncing near the $25.50 level.

I am suggesting a trigger to open bearish positions at $25.40. If triggered our target is $20.50.

Trigger @ 25.40

Suggested Position: short ENDP stock @ (trigger)

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

Annotated chart:

Weekly chart: