NEW BEARISH Plays

EMC Corp. - EMC - close: 22.83 change: -0.61

Stop Loss: 23.71
Target(s): 20.15
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 27.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
Shares of technology stock EMC have been underperforming the market for weeks. Today's decline (-2.6%) pushed shares to a new multi-month low and past support in the $23.15 area. Aggressive traders may want to launch new bearish positions now. I still see potential support at the June 2012 lows. Therefore I am suggesting a trigger to open bearish positions at $22.65. If triggered our target is $20.15.

Trigger @ 22.65

Suggested Position: short EMC stock @ (trigger)

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

buy the April $22 PUT (EMC1320p22) current ask $0.52

Annotated chart:



Western Digital Corp. - WDC - close: 44.81 change: -1.09

Stop Loss: 46.51
Target(s): 40.25
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 25, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 3.2 million
New Positions: Yes, see below

Company Description

Why We Like It:
WDC, like EMC, is also in the data storage business, but WDC makes hard drives. The rally in WDC ran into resistance near $49.00 a few weeks ago. After failing several times near $49 shares of WDC have started to correct lower. Right now WDC is nearing its 50-dma and could bounce. I am suggesting a trigger to launch bearish positions at $44.50. If triggered our target is $40.25. More aggressive traders may want to aim lower.

Trigger @ 44.50

Suggested Position: short WDC stock @ (trigger)

Annotated chart:

Weekly chart: