Editor's Note:

In addition to tonight's new play these stocks caught my eye. They all look like potential bearish candidates. Some need to break down to new relative lows first.




SunTrust Banks, Inc. - STI - close: 15.80 change: -0.68

Stop Loss: 17.15
Target(s): 11.00
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Financials helped lead the markets lower on Monday as worries persist over the sector's exposure to risk in Europe. Shares of STI, after hovering near support near the bottom of its trading range, finally broke down to new two-year lows.

I am suggesting readers open bearish positions now. We'll use a stop loss at $17.15. Our multi-week target is a drop to $11.00. FYI: The Point & Figure chart for STI is bearish with a $12.50 target.

Open Positions at the Open tomorrow

Suggested Position: short STI stock @ the open

- or -

buy the 2012Jan $15 PUT (STI1221M15) ask $0.57

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 01/20/12 (unconfirmed)
Average Daily Volume = 7.6 million
Listed on December 19, 2011