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:
GWRE, MPLX, PNR, LAMR, PDCE, NTGR, POWI, BRCM, RDWR, CGNX
NEW BEARISH Plays
Questcor Pharmaceuticals - QCOR - close: 25.53 change: -0.62
Stop Loss: 26.25
Current Gain/Loss: unopened
Entry on January -- at $--.--
Listed on January 15, 2012
Time Frame: exit prior to earnings in late February
Average Daily Volume = 1.8 million
New Positions: Yes, see below
Why We Like It:
Last year was a rough ride for QCOR. The biggest drop was in mid September. Shares of QCOR plunged on news that Aetna (AET), a large insurance company, had halted reimbursement payments for insured clients using QCOR's Acthar drug. QCOR said that AET only accounted for 5% of its Acthar business but Wall Street was worried that AET was just the first of many insurance companies that might stop reimbursements for the drug. There was another big drop just a couple of days later as shares of QCOR plunged again on news that its marketing tactics were being investigated by the U.S. government.
Since then QCOR has seen an impressive bounce from $18 back to $30 during the fourth quarter of 2012. Yet technically the rebound failed right at the 38.2% Fibonacci retracement of the sell-off. It looks like traders are now selling the stock again. QCOR has been underperforming the market.
Now the stock is about to breakdown under short-term support in the $25.50-25.00 zone.
Aggressive traders could launch positions on a new drop under today's low (25.47). I am suggesting a trigger to open bearish positions at $24.90. If triggered our target is $20.50.
Please note: that short interest on QCOR is significant. The most recent data listed short interest at 50% of the 54.7 million-share float. It might be easier and safer* to buy put options on QCOR instead of trying to short the stock.
*By using puts you can limit your risk to the cost of your initial investment of the put price.
Trigger @ 24.90
Suggested Position: short QCOR stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the Feb $25 PUT (QCOR1316n25) current ask $1.40