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) BUD, MJN, COG, MOS


NEW DIRECTIONAL PUT PLAYS

Joy Global, Inc. - JOY - close: 52.11 change: -2.12

Stop Loss: 55.05
Target(s): 47.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
JOY is a mining equipment maker. Growing concerns over a global slowdown are putting pressure on industrial names. JOY is in a bearish trend of lower highs and lower lows. The last few days the stock has been hinting at a breakdown from its three-week sideways consolidation within the larger bearish pattern. Well today just confirmed the breakdown.

I am suggesting bearish put positions at the open tomorrow. We'll start with a stop loss at $55.05. We do want to keep our position size small because JOY can be a volatile stock at times. It is possible that the $50.00 level could act as round-number, psychological support but we are aiming for a drop to $47.50.

- Suggested *SMALL* Positions -

buy the Jul $50 PUT (JOY1221S50) current ask $1.62

Annotated Chart:

Entry on June xx at $ xx.xx
Earnings Date 08/29/12 (unconfirmed)
Average Daily Volume = 2.6 million
Listed on June 25, 2012