Play Editor's Note: The market experienced a widespread sell-off today but the general trend is still up. We're tempted to add some new put candidates to the newsletter. A few stocks we are looking at are HOG, PEP, SGR.
HOG looks bearish after spending more than two weeks failing to breakout over resistance at $40.00 and its 100-dma. Traders could use a trigger under $38.00 and target a drop toward the bottom of its trading range at $34.00.
PEP looks bearish. I mentioned this one in the MarketMonitor today. PEP has broken support and is building a bear-flag pattern. Considering buying puts now or on a drop below $67.75. The challenge with PEP is that it doesn't move very fast. I'd target the $65.00 region.
SGR is struggling. Fundamentally the company seems to have more business than it can handle but investors are ignoring this backlog. SGR has bounced from its trendline of higher lows several times, which is normally bullish. Unfortunately the pattern of lower highs (bearish) seems to be growing more extreme. A drop under $48.50 or $48.00 could be used as an entry point for puts.