The market is trending lower but there are a few pockets of strength. Here's a list of bullish and bearish candidates that caught my eye.
DTV - the close under $48 and its 50-dma looks like a new entry point for bearish positions. Or you could wait for a bounce/failed rally in the $48.50-49.00 zone.
EXPD - the stock is breaking down but I would wait for a bounce or failed rally near $50 or its 200-dma before considering new bearish positions.
ETN - The breakdown under $49 and its 200-dma looks like a new entry point for bearish positions.
JCI - JCI has a similar pattern with a breakdown under technical support at the 200-dma.
SLE - The recent bounce has failed near $19.00. This could be a bearish entry point. A potential target could be the 17.25-17.00 area.
DNR - Wait for a breakdown under its 200-dma before considering bearish positions.
TXT - The oversold bounce failed at prior resistance near $22.00.
ZION - Financial stocks have been sinking to new lows and ZION just broke multiple layers of support.
LNC - Traders may want to wait for a bounce or failed rally near resistance at $28.00 or its 200-dma before considering bearish positions.
FTI - Wait for a breakdown under its 200-dma before considering bearish positions.
CVC - This cable TV stock was showing relative strength most of the session. I'd wait to see if shares bounce from their 100-dma before considering bullish positions.
NANO - Shares of NANO were showing relative strength today. The stock is bouncing from its 200-dma and NANO has not broken its long-term trend of higher lows. I was very tempted to buy the stock now. Unfortunately shares might gap open higher tomorrow. After the closing bell S&P announced they were adding NANO to the small cap 600 index. I would definitely keep NANO on your watch list for a possible bullish trade.
NEW BEARISH Plays
Marriott Intl. Inc. - MAR - close: 35.54 change: -0.64
Stop Loss: 37.55
Current Gain/Loss: + 0.0%
Time Frame: 4 to 6 weeks
New Positions: Yes, see below
Why We Like It:
Investors are growing more and more worried about a slow down in the economy and we're seeing that sentiment in new weakness for MAR. Shares just broke support at its 50-dma. Plus the stock is breaking down from what appears to be a bear-flag pattern. I am suggesting bearish positions now and we'll start with a stop loss at $37.55. The April lows near $33.50 might offer some support but we're aiming for the $30.00 area. I'll set our exit target at $30.50. FYI: The Point & Figure chart for MAR is bearish with a $25 target.
Suggested Position: Short MAR stock @ current levels
- or -
buy the July $33 PUT (MAR1116S33) current ask $0.60
Entry on June 8 at $xx.xx
Earnings Date 07/13/11 (unconfirmed)
Average Daily Volume: 3.7 million
Listed on June 7th, 2011