Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:

(bullish ideas) SHOO, NXPI, FNGN, KMX, HAL, WCN, WM, EA, LRN, MCRS, MDCA, CRUS



NEW BEARISH Plays

Linn Energy - LINE - close: 23.93 change: -1.06

Stop Loss: 25.05
Target(s): 20.50
Current Gain/Loss: unopened

Entry on August -- at $--.--
Listed on August 12, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
LINE is an oil and natural gas company focused on energy reserves inside the continental U.S. Back in February LINE announced it would buy Berry Petroleum (BRY). Yet news of an SEC inquiry into LINE has cast doubt on the merger deal. The SEC news was disclosed in early July and shares of LINE plunged from about $33 to $20. The oversold bounce failed at the 61.8% Fibonacci retracement level of the selloff. Now LINE is starting to accelerate lower again. The stock could retest its lows near $20.00.

Friday's low was $23.76. I am suggesting a trigger to open bearish positions at $23.65. If triggered our target is $20.50. The July low was $20.35.

Trigger @ 23.65

Suggested Position: short LINE stock @ (trigger)

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

Buy the Sep $22 PUT (LINE1321u22) current ask $1.10

Annotated chart: