The stock market has rallied to new highs on the Fed's decision. The market's move today has produced a lot of breakouts but we don't want to chase the rally.
We are adding a bearish candidate but I'll post some bullish looking symbols for your watch list.
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:
CLR, EOG, CVX, WLK, XOM, SHW, DE, PH, EXPE, CELG, NTRS
NEW DIRECTIONAL PUT PLAYS
Transocean Ltd. - RIG - close: 46.60 change: +0.41
Stop Loss: 46.80
Current Option Gain/Loss: Unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below
Why We Like It:
RIG is in the oil services industry. The stock temporarily broke down under support near $46 and its 100-dma before reversing higher with the market this afternoon. We think this bounce will fail.
Today's low was $45.48. I am suggesting a trigger to buy puts at $45.40. Our multi-week target is $42.00.
Trigger @ 45.40
- Suggested Positions -
buy the Nov $45 PUT (RIG1217w45) current ask $2.07
Entry on September xx at $ xx.xx
Average Daily Volume = 3.1 million
Listed on September 13, 2012