Option Investor
Newsletter

Daily Newsletter, Wednesday, 7/8/2009

Table of Contents

  1. Market Wrap
  2. New Option Plays
  3. In Play Updates and Reviews

Market Wrap

Lower Crude Prices, Disappointing IMF News Put Brakes on Rally

by Judy Alster

Click here to email Judy Alster
It was a less than sensational day on almost all counts, as a mixed outlook on the economy from the International Monetary Fund and falling commodity prices sent stocks retreating from a morning rally. Before climbing back, the Dow and the S&P500 hit levels not seen since May; the Dow managed a 14.8-point gain; the S&P and Nasdaq were about flat.

Dow Jones Industrial Average:

S&P500:

Like the other two indexes, the Nasdaq remains below its support and could easily revisit its May lows:

Nasdaq:

Both the Dow and the S&P 500 have shed about 7% since their June 12 highs, albeit on unenthusiastic volume. A continuing lack of really good news will almost certainly pull things lower.

Market Statistics for Wednesday:

Maybe it wasn't exactly on tenterhooks, but the market waited for news of Alcoa's (AA) second-quarter earnings, which came in after hours. They were lower, as expected. In its third consecutive quarterly loss, the company lost $454 million or 47 cents a share, evidence, if we needed it, of slumping orders from key buyers in aerospace, automotive and construction; analysts predicted a loss of 38 cents. (Excluding restructuring charges, Alcoa's loss would be 26 cents per share.) A year ago the company earned $546 million or 66 cents. Since then, aluminum demand has fallen with the global economy, driving up stockpiles and driving down prices while production has fallen.

Alcoa (reporting after hours)

Alcoa used to be considered one of the bellwethers of the economy, but many analysts no longer think it is. One respected analyst claims that it now only tells you about the health of the aluminum industry, and considers FedEx (FDX) and United Parcel Service (UPS) better signs of a trend. Both are down since May.

Even if Alcoa -- the first member of the Dow to release earnings -- had reported a bundle of orders, it probably wouldn't presage a real turnaround, as most customers let their inventories go down in recent months and are now restocking while aluminum prices are relatively low.

However, aluminum prices have been showing a slight uptick over the last six months, something to keep an eye on, as the metal price will rise well before the stock price does:

Aluminum prices, last six months:

Copper prices, which I've always considered as accurate a bellwether as aluminum, are also sneakily rising lately, although copper stocks aren't (yet):

Copper prices, last six months:

In economic reports, the Mortgage Bankers' Association's (MBA) purchase application index jumped a very noteworthy 6.7% in the week ending July 3 to 285.6, a level that hints, gently, at improved demand for housing. The refinance index also jumped, up 15.2% to 1,707.7. The index measures applications at mortgage lenders; it's a leading indicator for single-family home sales and housing construction. Mortgage rates weren't much changed in the week; they're at a still-appealing 5.34% for a 30-year fixed mortgage.

It's hard to judge from just one instance, but a few more reports like this could be an indicator of better times for housing. Still, none of the five big housing stocks - Pulte (PHN), Lennar (LEN), Centex (CTX), D.R. Horton (DHI) and Beazer (BZH)- responded whole-heartedly.

Lennar Corp.:

And here's a quick look at existing and new single-family- home sales through May. Is the worst over for housing? Stay tuned.

Single Family Home Sales (through May):

Crude oil prices fell for the sixth straight day, dropping $2.79 to $60.14, after hitting an eight-month high last week of $73. The Energy Information Administration's weekly petroleum inventory showed large buildups offsetting a 2.9 million barrel drawdown in crude oil for the week ending July 3.

Gasoline stocks rose 1.9 million; distillates jumped 3.7 million, with refineries continuing to operate at an active 86.8% of capacity. Summer driving has nudged demand up 1.3% year over year, but the rising gasoline and distillate stocks still indicate a slowing demand for crude, and crude supplies have been high all year. Investors are interpreting falling oil prices as a sign of economic weakness as industrial and manufacturing activity remains sluggish.

AMEX Oil Index

And not helping matters in the least was the International Monetary Fund's lowering of its global economic forecast. The IMF said it expects the world economy to shrink by 1.4% this year, slightly worse than its April estimate of 1.3% and further confirming investors' fears that their hopes and dreams for a solid recovery this year were probably premature.

Next year, it said, global activity should expand by 2.5%, higher than previously thought. On a fourth-quarter-over-fourth-quarter basis, real GDP growth is projected at 2.9% next year, also higher than previously thought. In short, the global economy is starting to pull out of a recession unprecedented in the post–World War II era, but stabilization is uneven and the recovery will not be robust. I think we knew this going in.

Since mid-June, after three months of a rising market, investors have become worried that the world economy may take longer to emerge from recession than they'd hoped, and the markets have shown it.

IMF Projection:

On the upside, demand was at record levels in today's $19-billion, 10-year Treasury auction, pushing prices up while yields fell to their lowest in about seven weeks; it was the third of four major auctions this week. Yields on 10-year-notes fell 13 basis points to close at 3.32%, the lowest close since May 20. (Yields on 2-year notes declined 4 basis points to 0.93%, after earlier declining to the lowest in more than a month.)

Bidders offered $3.28 for every dollar sold, compared to $2.62 at the last auction in June. That's the highest "bid-to-cover" since at least 2001. The Treasury Department sold the 10-year notes at a yield of 3.365%, well below expected levels, with the amount offered matching the amount sold last month. This contrasts with comparatively tepid results in recent coupon auctions.

Indirect bidders, a class of investors that include foreign central banks, bought 43.9% of the sale, compared to 34% last month (although the proportion of sales to indirect bidders jumped last month after a change in tabulation methods). Another 13% of the sale went to direct bidders, or investors buying the debt for their own accounts. The more the auction goes to direct and indirect bidders instead of primary dealers, the better for the market, as dealers often turn right around and have to sell the debt, pressuring prices.

10-Year U.S. Treasury Yields:

The 10-year notes, and Thursday's sale of $11 billion in 30-year bonds , are so-called "reopenings" of securities sold during the government's quarterly refunding in May, meaning they carry the same coupon and maturity date as the original debt. The Treasury is using reopenings as a way to spread out the sales of increasing amounts of debt needed to finance the government's and the Fed's programs to revive the economy and ease credit-market strains.

Analysts have paid more attention to the government's debt sales in the last few months, looking for signals of whether investors, particularly foreign central banks, remain willing to buy U.S. debt.

You'll note that after falling on the IMF report, the market responded well, if briefly, to the auction news. Later it managed to recover after news that credit was still pretty tight:

S&P500 Intraday:

The Consumer Credit report brought some not-terrible news: the dollar value of consumer installment credit outstanding contracted much less than expected in May, at $3.2 billion vs. April's monster shrinkage of $16.5 billion. Expectations were more than twice that, at negative $7.5 billion. May's contraction was mostly focused on revolving credit (the open-ended credit line such as you get from a credit card), which came in at $2.9 billion after April's $8.7 billion in revolving credit debt. Which is to say, consumers are saving, not spending, and banks are pulling back available credit on credit cards. Nonrevolving credit, such as auto or student loans, fell .4 billion in May.

Credit card companies have been tightening available credit while consumers have pulled back on spending-either due to job loss or the fear of it. The scarcity of credit and the unwillingness to draw on it are major factors limiting economic improvement, not just in the consumer sector but in the business sector as well. It seems that Americans have gone from spending like sailors directly to stuffing money in their mattresses. Neither is good. A successful economy requires levels of spending, and saving, somewhere between the two.

In further earnings news, discount retailer Family Dollar (FDO) soared $3.56 or 12.8% after reporting that its fiscal third-quarter profit rose 36%. The economy, not surprisingly, has been driving more and more consumers to Family Dollar's stores. In the latest quarter, Family Dollar earned $87.7 million or 62 cents per share, up from $64.7 million or 46 cents a year ago. The company also gave profit guidance that was higher than the consensus, saying it would earn 39 cents to 43 cents a share in the fourth quarter, compared to analysts' estimate of 39 cents, and that sales trends would improve in July and August.

Family Dollar Stores:

Dollar stores are among the few companies that benefit from a recession. Shoppers still want to buy staples at a discount. Dollar Tree (DLTR) followed its rival up $3.23 or almost 8% and 99 Cents Only Stores (NDN) gained 47 cents or 3.6%.

Pepsi Bottling Group Inc. (PBG) reported a higher-than-expected quarterly profit as price increases and stronger U.S. sales of carbonated soft drinks helped offset declining demand for pricier beverages. Those falling aluminum prices also helped boost earnings. Soft drinks are selling well as consumers look for less-expensive treats, although Pepsi Bottling said sales volume had fallen here and in Canada. The stock, which jumped 22% on an April bid from PepsiCo, is up over 76% since March. It had a quiet day.

Pepsi Bottling Group:

Decidedly unglamorous but absolutely essential* lubricant and cleaning products maker WD-40 Co. (WDFC) posted a better-than-expected third-quarter profit despite a 15% drop to $6.9 million or 41 cents a share, down from $8.1 million or 49 cents a share a year earlier, but above estimates. The stock, although volatile, has been on a more or less steady uptrend since March. (*There's rarely any Pepsi in my house, but I haven't been without a can of WD-40 since Gerald Ford was President.)

WD-40 Co.:

After the close, the Treasury at last took the wraps off its plan to cut bank toxic assets. Much smaller than originally called for, it's a public-private government program designed to take up to $40 billion in so-called toxic mortgage securities and other assets off bank balance sheets, with the Treasury picking nine investment managers to participate in the program. The Treasury said the goal of the program is to "jump start" trading in the mortgage securities.

It's rather less than the $1 trillion in toxic assets the Treasury expected to clear from financial institutions when it unveiled the overview of the program in March. The toxic asset program has transmuted many times in the past nine months and now some industry analysts say interest in the program has faded. Perhaps financial institutions hesitate to sell assets because they think their valuations will rise as the economy turns around.

Tomorrow the Bank of England determines interest rate policy at its monthly Monetary Policy Committee meetings; if the outcome is different from expectations, which are No Change, the effect on the markets can be dramatic. Also reported will be jobless claims.

In earnings, the market awaits Chevron (CVX), networking solutions firm 3COM (COMS), beauty products company Helen of Troy (HELE) and enterprise software maker Lawson (LWSN).

Please note: I won't be posting the Wednesday wrap for the next two weeks, but will be back with you on the 29th.

Judy Alster


New Option Plays

Secondary Education

by James Brown

Click here to email James Brown

Editor's Note:

While looking for new candidates today I found IDXX, which looks poised to breakout higher from its sideways consolidation. Readers may want to check it out. A trigger over $47.50 might work.


NEW DIRECTIONAL PUT PLAYS

ITT Educational - ESI - close: 90.50 change: -1.13 stop: 92.65

Why We Like It:
This education stock looks like it's about to breakdown. The stock has been testing support near $90.00 for weeks. There was a rally attempt in late June but it has failed. The Point & Figure chart is bearish and forecasts a $76.00 target. I am suggesting readers use a trigger to buy puts at $88.99. If triggered our first target is $81.00. We do not want to hold over the late July earnings report.

Suggested Options:
I am suggesting the August puts.

BUY PUT AUG 90.00 ENJ-TR open interest= 181 current ask $6.70
BUY PUT AUG 85.00 ENJ-TQ open interest= 302 current ask $4.60
BUY PUT AUG 80.00 ENJ-TP open interest=   0 current ask $2.95

Annotated Chart:

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       902 thousand 
Listed on  July 08, 2009         



In Play Updates and Reviews

Something for Everyone

by James Brown

Click here to email James Brown


CALL Play Updates

Quest Diagnostic - DGX - close: 56.07 chg: +0.20 stop: 53.85

DGX showed some relative strength by trading sideways all day and avoiding the market's morning swoon. We do not want to open new positions at this time.

Our first target to take profits is $58.25. Our second target is $59.90. More aggressive traders may want to aim higher. The Point & Figure chart has a new triple-top breakout buy signal with a $75 target. We do not want to hold over the late July earnings report.

Picked on     June 24 at $ 54.28
Change since picked:      + 1.79
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       1.1 million  
Listed on  June 24, 2009         


Express Scripts - ESRX - close: 66.66 change: -0.33 stop: 64.75

ESRX managed a sharp rebound near lunchtime and rallied off its 20-dma. I'm not suggesting new positions and I'm raising the stop loss to $64.75. Our first target is $69.90. Our second target is $74.75.

Picked on     June 22 at $ 65.25
Change since picked:      + 1.41
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       3.7 million  
Listed on  June 18, 2009         


Edwards Lifesciences - EW - close: 66.09 change: +0.81 stop: 64.85

EW almost erased yesterday's losses. The stock actually gapped higher this morning before fading under its 10-dma. I couldn't find any news to account for the gap open and spike toward $66.50. I don't see any changes from my previous comments. I'm not suggesting new positions. Nimble traders may want to use our stop loss at $64.85 as an entry point switch directions and buy puts.

The Point & Figure chart is bullish with an $84.00 target. Our target is $74.00. We will plan to exit ahead of the July 20th earnings report.

Picked on     June 30 at $ 68.03
Change since picked:      - 1.94
Earnings Date           07/20/09 (confirmed)
Average Daily Volume =       369 thousand 
Listed on  June 30, 2009         


Euro Currency ETF - FXE - close: 138.80 chg: -0.31 stop: 137.90

The FXE dipped toward its simple 50-dma and found very short-term support at $138.30. This currency ETF then produced a tiny little double bottom before rebounding higher this afternoon. I'm still not suggesting new positions at this time. Look for a new bounce over $140.00 to buy calls.

Our first target is $144.50. Our second target is $148.50. The P&F chart is bullish with a $168 target.

Picked on     June 23 at $140.76
Change since picked:      - 1.96
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Lorillard Inc. - LO - close: 68.23 change: -1.45 stop: 67.30

The idea that investors would buy more defensive, high-yielding names during a market pull back is not proving to be true in shares of LO. The stock has failed at resistance near $70.00 and under performed today. We're still waiting for a breakout over resistance.

We have a trigger to buy calls at $70.10. If triggered our first target is $74.00. Our second target is $76.75. FYI: The Point & Figure chart is very bullish and currently forecasts a $92 target.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  July 01, 2009         


UltraShort SP& 500 - SDS - cls: 60.16 chg: +0.16 stop: 55.90

Our new call play on the SDS has been triggered. When the S&P 500 broke support the SDS broke through resistance and hit our trigger at $60.50. The late day reversal lower is a little bit concerning but we knew this was going to be a volatile trade, which is why we have a wide stop loss. Readers may want to watch for a dip or a bounce near $58.00 as a potential entry point.

I'm repeating myself but the SDS can be volatile and readers may want to trade half or less than their normal position size. Our first target to take profits is the $64.00 level. Our second target is the $67.00 level. My time frame is several weeks (toward August option expiration) but traders might want to buy September calls instead.

Chart:

Picked on     July 08 at $ 60.50 *triggered     
Change since picked:      - 0.34
Earnings Date           00/00/00
Average Daily Volume =        40 million  
Listed on  July 07, 2009         


Visa - V - close: 59.49 change: -0.22 stop: xx.xx

So far shares of Visa have done exactly what we expected. They broke support at $60.00 only to find support in the $58.00-57.50 zone and rebound. This looks like a bullish entry point but I want to take a wider view of the market. The S&P 500 broke support today and while it did bounce off its lows it did not reclaim that support. For now we have no entry point for Visa but I might be tempted to buy calls if Visa can traded above $62.00.

Picked on     July xx at $ xx.xx <-- Wait for a new entry point
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       7.7 million  
Listed on  July 04, 2009         


PUT Play Updates

Agrium Inc. - AGU - close: 36.73 change: -0.74 stop: 41.65

AGU continues to hit new lows and sank to $36.12 intraday. Our first target is $35.10. Our second target is $31.00.

FYI: Readers should note that AGU is trying a hostile takeover for CF Industries, which is itself trying a hostile takeover of Terra Industries.

Picked on     July 06 at $ 38.75 *triggered     
Change since picked:      - 2.02
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       4.2 million  
Listed on  June 30, 2009         


Core Labs - CLB - close: 82.60 change: +1.15 stop: 88.30

Caution! While oil continued to slide to new relative lows many of the oil stocks did not. The oil service sector actually managed a bounce, which is extremely surprising. CLB hit our first target at $80.25 but then rallied. Today's move has actually produced a bullish engulfing (reversal) pattern. Now it needs confirmation but bearish traders should be on the defensive. I am lowering our stop loss to $85.25. Our second target is $76.00.

Chart:

Picked on     July 01 at $ 83.16 /gap down entry
                              /originally listed at 84.53
Change since picked:      - 0.56
                              /1st target hit @ 80.25 (-3.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =       232 thousand 
Listed on  July 01, 2009         


Compass Minerals Intl. - CMP - cls: 52.06 change: -0.50 stop: 56.26

CMP is still sinking but it produced a nice bounce off its lows. Watch for a failed rally near $54.00 as a new entry point. Our first target is $47.50. Our second target is $43.00.

Picked on     July 06 at $ 52.25 *triggered     
Change since picked:      - 0.19
Earnings Date           07/27/09 (unconfirmed)
Average Daily Volume =       792 thousand 
Listed on  June 29, 2009         


Costco - COST - close: 46.02 change: +1.48 stop: 46.10

COST still can't make up its mind, up one day down the next, etc. The stock displayed impressive relative strength with a 3.3% gain. Tomorrow brings the monthly same-store sales numbers to retail could see some volatility tomorrow.

Our plan is to buy puts at $43.90. If triggered our target is $40.25.

Picked on     July xx at $ xx.xx <-- see TRIGGER
Change since picked:      + 0.00
Earnings Date           10/08/09 (unconfirmed)
Average Daily Volume =      4.75 million  
Listed on  July 04, 2009         


Freeport McMoran - FCX - close: 45.10 change: +0.10 stop: 50.51 *new*

Has FCX bottomed? I don't think so but shares are bouncing from a test of technical support at the 100-dma. An analyst upgrade to a "buy" this morning doesn't hurt. A failed rally in the $48-50 zone can be used as a new entry point to buy puts. I'm lowering our stop loss to $50.51. Shares of Alcoa (AA) are up in afterhours action tonight following a better than expected earnings report. This could give FCX a lift tomorrow. FCX has already hit our first target at $45.25. Our second target is $41.00.

Picked on     July 04 at $ 47.92 /gap down entry
                               /originally listed at $49.72
Change since picked:      - 2.92
                               /1st target hit @ 45.25 (-5.5%)
Earnings Date           07/22/09 (unconfirmed)
Average Daily Volume =        18 million  
Listed on  July 04, 2009         


L-3 Comm. - LLL - close: 63.97 change: -0.04 stop: 68.55

It was a quiet session for LLL, which traded sideways around the $64.00 level. We're not suggesting new positions at this time. LLL has already hit our first target at $66.00. Our second target is $61.00.

Picked on     June 16 at $ 71.75
Change since picked:      - 7.78
                               /1st target hit @ 66.00 (-8.0%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       976 thousand  
Listed on  June 16, 2009         


MetLife Inc. - MET - close: 26.90 change: -0.44 stop: 30.35

MET dipped under technical support at its 100-dma intraday but found short-term strength at the $26.00 level. I would watch for a bounce or failed rally near $29.00 as a new entry point. Our first target is $25.25. Our second target is $21.75.

Picked on     July 04 at $ 28.04
Change since picked:      - 1.14
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       7.4 million  
Listed on  July 04, 2009         


NII Holdings - NIHD - close: 18.36 change: -0.09 stop: 20.10

Wednesday was a mild session for NIHD with shares trading sideways in a narrow range. I don't see any changes from my prior comments but readers might want to watch for another failed rally at its 200-dma as a new entry point. Our first target is $16.15.

Picked on     July 04 at $ 18.61
Change since picked:      - 0.16
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       2.9 million  
Listed on  July 04, 2009         


Sears Holdings - SHLD - close: 59.01 change: -0.74 stop: 65.60

SHLD under performed the market and its peers in the retail sector. The RLX index actually gained 2% on the session thanks to strength in WMT and the one-dollar style stores. Nothing has changed from my previous comments on SHLD. I'm suggesting we open this play in two parts. Buy half your put position now and then buy the second half if the stock bounces back into the $62.00-64.00 zone. Our first target is $55.10. Our second target is $50.50. FYI: The market will get the monthly same-store retail sales numbers tomorrow. The retail sector could see some volatility.

Picked on     July 07 at $ 59.75
Change since picked:      - 0.74
Earnings Date           08/27/09 (unconfirmed)
Average Daily Volume =       1.2 million  
Listed on  July 07, 2009         


United Parcel Serv. - UPS - close: 47.88 change: +0.16 stop: 51.55

The transports rebounded from their lows and back to positive territory by the closing bell. UPS followed suit. The larger trend is bearish. Readers may want to watch for another failed rally near $50.00 or its 200-dma before launching new positions.

Our first target to take profits is $45.50. I am setting a secondary target at $43.00. We do not want to hold over the late July earnings report.

Picked on     June 26 at $ 49.50 *triggered     
Change since picked:      - 1.62
Earnings Date           07/23/09 (confirmed)
Average Daily Volume =       5.2 million  
Listed on  June 17, 2009         


Weyerhaeuser - WY - close: 27.68 change: -0.18 stop: 31.51

WY hit new relative lows on strong volume today. I am not suggesting new positions at this time. Our first target is $26.00. Our second target is $23.00. The P&F chart points to a $24 target.

Picked on     July 04 at $ 29.51
Change since picked:      - 1.83
Earnings Date           07/31/09 (unconfirmed)
Average Daily Volume =       2.1 million  
Listed on  July 04, 2009         


Wynn Resorts - WYNN - close: 29.91 change: -0.84 stop: 35.25 *new*

Target hit! WYNN has exceeded our first target to take profits at $30.25. While the close under $30.00 is very bearish I would be careful. The DJUSCA gambling index is down about 7 days in a row and testing technical support near its 100 and 200-dma. If the sector index bounces WYNN will probably follow.

I am lowering our stop loss to $35.25. Broken support near $34.00 should be new overhead resistance. Our second target is $26.00.

Chart:

Picked on     June 22 at $ 34.28
Change since picked:      - 4.37
                               /1st target hit @ 30.25 (-11.7%)
Earnings Date           07/30/09 (unconfirmed)
Average Daily Volume =       3.4 million  
Listed on  June 22, 2009         


CLOSED BULLISH PLAYS

Alcon Inc. - ACL - close: 112.50 change: -2.86 stop: 113.75

No one should be surprised that ACL has hit our stop. We've been raising the stop for just this occasion - the S&P 500 breaking support at 880. ACL hit our stop at $113.75 and made it to $110.28 before bouncing.

Chart:

Picked on     June 25 at $115.25 *triggered    
Change since picked:      - 1.50<-- stopped out @ 113.75 (-1.3%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       688 thousand 
Listed on  June 24, 2009         


Becton Dickinson - BDX - close: 68.67 change: -0.74 stop: 68.70

Yesterday's failed rally in BDX was worrisome and we raised our stop last night. The stock continued to slip and closed the play at $68.70. BDX eventually hit its 200-dma before trying to bounce this afternoon.

Chart:

Picked on     June 25 at $ 70.51 *triggered     
Change since picked:      - 1.81<-- stopped @ 68.70 (-2.5%)
Earnings Date           07/23/09 (unconfirmed)
Average Daily Volume =       1.8 million  
Listed on  June 18, 2009         


Covance Inc. - CVD - close: 46.44 change: -0.72 stop: 46.45

We also raised our stop on CVD yesterday on concerns the S&P 500 would break support. The stock dipped to its 200-dma and broke support at $46.00 before trimming its losses. Our play was stopped at $46.45.

Chart:

Picked on     June 25 at $ 48.28
Change since picked:      - 1.83<-- stopped out @ 46.45 (-3.7%)
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       654 thousand
Listed on  June 25, 2009         


CLOSED BEARISH PLAYS

Autozone Inc. - AZO - close: 155.33 change: +4.59 stop: 155.25

AZO does not want to cooperate. The recent failed rally and bear-flag style consolidation has been broken. The stock broke through resistance at $154.00 and traded past a handful of moving averages to hit our stop loss at $155.25. FYI: The P&F chart still points to a $134 target.

Chart:

Picked on     July 04 at $150.00
Change since picked:      + 5.25<-- stopped out @ 155.25 (+3.5%)
Earnings Date           09/22/09 (unconfirmed)
Average Daily Volume =       1.0 million  
Listed on  July 04, 2009