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:
KRE, RRGB, CCOI, JEC, KATE, OUTR, CVLT, CSOD, SWM,
NEW BEARISH Plays
Rock-Tenn Co. - RKT - close: 45.54 change: -1.16
Stop Loss: 48.05
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on October -- at $---.--
Listed on October 11, 2014
Time Frame: Exit prior to earnings on November 3rd
Average Daily Volume = 809 thousand
New Positions: Yes, see below
Why We Like It:
RKT is in the consumer goods sector. You probably see their products every day since RKT makes corrugated and consumer packaging. The company is based in Georgia but they operate in the U.S., Canada, Mexico, Chile, Argentina and China. Unfortunately, unlike the U.S., most of those countries are seeing their economies slow down.
RKT's earnings performances have been all over the map this past year with big swings between beats and misses. Investors have been confused and the stock has been consolidating sideways for over a year. It looks like the end of the consolidation is at hand with a breakdown to new 52-week lows.
The market's recent weakness is pushing RKT out of a massive bearish wedge pattern (seen on the weekly chart below). Investors could launch bearish positions now. We're suggesting a trigger to launch positions at $44.75 instead just in case the $45.00 level is support.
We are not setting an exit target tonight but the point & figure chart is bearish with a quadruple-bottom breakdown sell signal that is currently forecasting at $40.00 target.
Trigger @ $44.75
- Suggested Positions -
Short RKT stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the NOV $45 PUT (RKT141122P45) current ask $2.05
Option Format: symbol-year-month-day-call-strike