Northrop Grumman (Short Idea)
I have been watching NOC for a long trade for the last several weeks. In fact, I even added it to the Watchlist back in September.
But thanks to a vicious bear market, the stock failed at its highs and is now rolling over.
Failed breakout trades can be lucrative short opportunities, and you might consider a short trade on NOC if it breaks last week’s low and trades below $464.
Foot Locker (Short Idea)
The significance of the 200-day moving average cannot be overstated.
Strong stocks hold above it and tend to find support at the 200-day. Once broken, this same level generally becomes resistance and holds price below it.
FL is pushing up against not only its 200-day moving average, but the 21-day and 50-day as well.
Together, these are likely to create a resistance zone in the $32-$34 area. This is a low-risk area from which one might consider entering a short trade.
Regeneron Pharmaceuticals (Long Idea)
If you are not comfortable shorting stocks and looking for names to buy, Regeneron is one of a small handful of bullish setups.
The stock just completed a large cup with handle pattern.
The trigger to buy would be a move above $760 on above average volume.
Breakout trades are failing at a higher rate than normal given the downward pressure of the bear market, so be sure to use a tight stop if you take this trade.
Personally, I wouldn’t risk more than about 5%.