Editor's Note:

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

(bullish ideas) FDO, BPL.

(bearish ideas) PXD, CRM, RL, PH, CLR, TIF, JLL, SHLD.


NEW DIRECTIONAL PUT PLAYS

Anixter Intl. - AXE - close: 53.23 change: -1.49

Stop Loss: 56.05
Target(s): 48.50
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
AXE distributes a wide variety of industrial equipment. The stock has made a dramatic breakdown in the last few weeks. Shares hit new relative lows again today. I am suggesting small bearish positions at the open tomorrow. We want to keep our position size small because AXE has above average short interest. The most recent data listed short interest at 15% of the small 27.6 million share float.

We'll start with a stop loss at $56.05. It's possible that the $50.00 level could be round-number support but the daily chart would suggest AXE doesn't have any support until the $48.00 area. We'll aim for $48.50.

*Small positions*

- Suggested Positions -

buy the Jul $50 PUT (AXE1221S50) current ask $1.20

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 07/24/12 (unconfirmed)
Average Daily Volume = 339 thousand
Listed on June 13, 2012