Editor's Note:

In addition to tonight's new candidate, consider these stocks as possible trading ideas and watch list candidates:

EL - Estee Lauder has rallied to major resistance near $60.00. A breakout past the 2011 high ($60.37) could be used as a bullish entry point.

ASH - the oversold bounce in Ashland Inc. has failed near resistance at its 50-dma. Today's move looks like a short-term bearish entry point. Could be a chance to scalp two or three points.

POT - The oversold bounce in Potash Corp. is failing and shares underperformed today. Traders could use a drop under last week's low ($42.88) as a new entry point for bearish positions. I suspect the $40.00 level might offer some support but I would be tempted to aim for the $39.00-38.50 zone.


NEW DIRECTIONAL PUT PLAYS

Centene Corp. - CNC - close: 45.61 change: -1.17

Stop Loss: 46.25
Target(s): 40.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
After a four-month rally this healthcare stock is correcting. Shares saw a sell-off in early March and recently CNC has been consolidating along technical support at its 50-dma. Tonight this stock look vulnerable to more selling pressure and a breakdown under support.

I am suggesting a trigger to open bearish put positions at $44.75. This will require CNC to trade under its 50-dma and potential support at the $45.00 mark. If triggered we'll use a stop loss at $46.25. Our target is $40.50.

Trigger to buy PUTS @ $44.75

- Suggested Positions -

buy the Apr $45 PUT (CNC1221P45) current ask $1.70

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 529 thousand
Listed on March 12, 2012


Joy Global, Inc. - JOY - close: 78.73 change: -1.58

Stop Loss: 81.65
Target(s): 72.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JOY makes mining equipment and the stock tends to trade with the mining stocks. Right now the intermediate trend is down. JOY broke support at its trend of higher lows, it broke support at several key moving averages, and it broke what could have been support at the $80.00 level. Now shares are hovering sideways in the $78-81 area.

I am suggesting a trigger to open bearish put positions at $77.75. We'll use a stop loss at $81.65. Our target is $72.50. More aggressive traders could aim lower. The Point & Figure chart for JOY is bearish with a $70 target.

Trigger to buy PUTS @ $77.75

- Suggested Positions -

buy the Apr $75 PUT (JOY1221P75) current ask $2.32

Annotated Chart:

Entry on March xx at $ xx.xx
Earnings Date 06/04/12 (unconfirmed)
Average Daily Volume = 2.8 million
Listed on March 12, 2012