Mattel: Bears Ready to Romp

A prudent short entry would be at $27.60 or higher. Note that Mattel's intraday low yesterday was $27.62 -- if the stock gaps down at the open, it is likely to advance on short-covering. This advance would bring the stock back up into Wednesday's trading range, $28.37 to $27.62.

Once the short is opened, I'd consider putting a stop at around $28.70, which is just above the 50-day moving average. The downside target on this trade would be about $25.

Updates on Previous Picks

• Assisted Living Concepts (ALC Quote) remains on the Watch List. Right now, this short pick is still in congestion. Wait for a move up to $11.60, or a decline to $10.95 before shorting. Shares closed at $11.33 Wednesday.
• Goldcorp (GG Quote) is also on the Watch List. Wait for this short idea to snap back to $25 before entering a position. Shares closed at $22.81 Wednesday.
• Last, Lam Research (LRCX Quote) remains on the Watch List as well. Wait for an advance to $53.80 before shorting this one. The stock closed at $53.29 Wednesday.