NEW BEARISH Plays

The ADT Corp. - ADT - close: 43.39 change: -0.63

Stop Loss: 44.65
Target(s): 38.00
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 16, 2013
Time Frame: exit PRIOR to earnings on May 1st
Average Daily Volume = 3.7 million
New Positions: Yes, see below

Company Description

Why We Like It:
ADT's up trend appears broken. The stock started to breakdown in late March and early April. The oversold bounce failed about a week and a half ago. Now ADT is starting to break down to new relative lows. Shares could easily see a correction into the $40-38 zone.

Today's low was $42.75. I am suggesting a trigger to open bearish positions at $42.50. If triggered our target is $38.00. More conservative traders may want to exit near $40.00 instead. The Point & Figure chart for ADT is bearish with a $35 target.

FYI: ADT is scheduled to begin trading ex-dividend on April 22nd. The dividend should be 12.5 cents.

Trigger @ $42.50

Suggested Position: short ADT stock @ (trigger)

Annotated chart:



Casey's General Stores - CASY - close: 54.00 change: -0.20

Stop Loss: 55.15
Target(s): 50.00
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 16, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 249 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
CASY operates more than 1,700 convenience stores. This stock's up trend also appears broken. The gap down in early April appears to be a reaction to a downgrade. CASY rebound enough to fill the gap and then reverse. Now CASY has broken below several key moving averages including its 200-dma and 300-dma.

Today's low was $53.67. I am suggesting a trigger to launch bearish positions at $53.50. If triggered our short-term target is $50.00 but readers may want to aim lower. The Point & Figure chart for CASY is bearish with a $48.00 target.

FYI: CASY is due to trade ex-dividend on April 29th. The quarterly dividend should be about 16.5 cents.

Trigger @ $53.50

Suggested Position: short CASY stock @ (trigger)

Annotated chart: