NEW BEARISH Plays

GW Pharmaceuticals - GWPH - close: 57.44 change: -3.11

Stop Loss: 61.05
Target(s): 47.50
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 335 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
GWPH is in the healthcare sector. This British company is in biopharmaceuticals. The stock has been seeing a lot of momentum. That might be due to recent news that GWPH has signed a deal with French drug company Ipsen to market its Sativex treatment, a controversial cannabis spray.

Technically it looks like the upward momentum in GWPH may have peaked. There is arguably a short-term bearish double top near the $65-67 area earlier this month. Now GWPH is on the verge of breaking a trend line of support (higher lows).

I do consider this an aggressive, higher risk trade because GWPH can be volatile. Today's low was $57.00. I am suggesting a trigger to open small bearish positions at $56.75. If triggered our target is $47.50 (or the 50-dma).

Trigger @ 56.75 *small positions*

Suggested Position: short GWPH stock @ (trigger)

Annotated chart:



Telefonica Brasil, S.A. - VIV - close: 17.97 change: -0.14

Stop Loss: 18.80
Target(s): 15.25
Current Gain/Loss: unopened

Entry on February -- at $--.--
Listed on February 19, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.9 million
New Positions: Yes, see below

Company Description

Why We Like It:
VIV is a telecommunication company in Brazil. The stock appears to be in a slow decline since its 2011 peak. Although it looks like the decline is picking up speed. Shares have been underperforming the last couple of days and shares tagged a new multi-year low today.

VIV is trying to hold support near $18.00 and its December 2013 low. A breakdown here could signal a drop toward $16 or lower.

Today's intraday low was $17.78. I am suggesting a trigger at $17.70 to open bearish positions. Our target is $15.25. The Point & Figure chart for VIV is bearish with a $12.00 target.

Trigger @ 17.70

Suggested Position: short VIV stock @ (trigger)

Annotated chart: