Editor's Note:

Additional Trading Ideas:

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

(bullish ideas)

(bearish ideas)


Catamaran Corp. - CTRX - close: 43.76 change: -1.47

Stop Loss: 45.55
Target(s): to be determined
Current Gain/Loss: unopened

Entry on April -- at $--.--
Listed on April 03, 2014
Time Frame: 6 to 8 weeks
Average Daily Volume = 2.4 million
New Positions: Yes, see below

Company Description

Why We Like It:
CTRX is in the technology sector. The company provides pharmacy benefit management services and healthcare information technology. It looks like the bull market in shares of CTRX is over. The stock peaked near $58 back in August 2013. It's been a volatile stock over the last couple of years. Shares plunged on February 27th following the company's earnings report. CTRX beat estimates on both the top and bottom line but guided lower for 2014. Shares have failed to see much of a bounce as analysts worry about CTRX's shrinking margins.

The $43.50-44.00 level is significant support. The December 2013 low was $43.49. Today's low is $43.63. I am suggesting a trigger to open bearish positions at $43.40. Plan on exiting prior to CTRX's earnings report in early May.

Trigger @ 43.40

Suggested Position: short CTRX stock @ (trigger)

- (or for more adventurous traders, try this option) -

Buy the May $45 PUT (CTRX1417Q45) current ask $2.65

Annotated chart:

Weekly chart: