Option Investor
Newsletter

Daily Newsletter, Thursday, 9/17/2009

Table of Contents

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

Market Wrap

Stocks Fall, But Rally Is Probably Resting, Not Faltering

by Todd Shriber

Click here to email Todd Shriber
Stocks finished Thursday in the red, but the declines were negligible and probably not enough to stoke the flames of the bears, assuming they have any fire left in them. After finishing Wednesday's session at 11-month highs, stocks pulled back on Thursday, but none of the declines among the three major U.S. indexes broke into double-digit territory. The S&P 500 fell 3.27 points to close at 1065.49 while the Dow Jones Industrial Average retreated less than eight points to finish the day at 9783.92. The Nasdaq show similarly tepid losses, falling just 6.4 points to close at 2162.75.

Stats Table

The declines were disappointing, as they always are, when considering that Thursday's session got off to a good start on news that weekly jobless claims fell by 12,000 last week, beating expectations. The Labor Department said 545,000 people filed new unemployment claims last week. Estimates were calling for that number to come in at 560,000. Today's number is below the four-week moving average and any good news on the jobs front is welcomed by the market at this point.

Jobless Claims

Unfortunately, the jobs news was not enough to prop stocks up for the entire session as a couple of glum economic data points sent the bulls into sell mode and proceeded to keep equities locked in tight, lethargic ranges for the remainder of the day. Housing starts rose by a less-than-forecast 1.5% in August and continuing jobless claims rose to 6.23 million from 6.1 million. Housing starts hit 598,000 in July, but analysts had been expecting 600,000. On the bright side, building permits were up 2.7% month-over-month.

Housing Starts

One aspect of today's decline that is noteworthy is that marquee, blue chip names endured the brunt of the selling. Down days have recently been marked by either the financials or commodities-related stocks being the epicenters of the sell-offs. That was not the case on Thursday as telecoms took their turn in the negative spot light. The group was the biggest loser among the 10 industry groups tracked in the S&P 500.

A mixed bag of comments from the chief executive officers of America's two telecom giants, AT&T (T) and Verizon (VZ), both Dow components, had investors feeling squeamish about the sector. AT&T CEO Randall Stephenson told attendees at a Goldman Sachs investor conference said that while he expects his company to add more mobile phone subscribers, he expects the company's overall growth to be ''flattish for some time'' and that opportunities for growth may appear in the second half of 2010.

Lukewarm comments to be sure and certainly not enough to send the bulls running into AT&T shares, which finished the day down 17 cents to $26.37. Verizon CEO Ivan Seidenberg gave a more dour assessment, noting the U.S. economy is still shrinking and that growth among small business customers was ''not as fast as you'd like.'' Seidenberg said very little job creation is taking place and that it is too soon to estimate when key markets will start to recover.

Seidenberg's comments sent Verizon shares down 90 cents to $29.51, meaning Verizon closed at the low of the day making the stock the biggest loser in the Dow Jones Industrial Average. Verizon's chart is not a pretty picture. The recent highs have been lower and the recent lows have been lower, too, and today's drop sent the stock tumbling below both its 50 and 200-day moving averages.

Given the glum comments from AT&T and Verizon, it appears that the biggest point of attraction for either stock is that they both yield 6.1%, the best level in the Dow, and both firms are reliable dividend payers. Verizon recently hiked its payout and it would not be a surprise to see AT&T follow suit. See, I do like to point out positives from time-to-time.

Verizon Chart

As I said earlier, this was a blue-chip led decline today and AT&T and Verizon were certainly not the only culprits. Oracle (ORCL), the largest maker of enterprise software in the world, tumbled during Thursday's trade after Wednesday's after-the-close earnings report missed analyst estimates. Oracle earned 22 cents a share on sales of $5.1 billion during its usually slow fiscal first quarter. Those numbers missed analyst estimates of earnings of 30 cents a share and sales of $5.2 billion and Oracle's decline weighed on the Nasdaq.

The Nasdaq and its many tech issues have led the market higher over the past six months and during that time, Oracle's share performance has tracked that of its home index, but there has been some divergence over the past three months with the Nasdaq up about 17% and Oracle lagging at ''just'' 11%. Today's close for Oracle saw the stock finish below support in the $21.85 area, also the 50-day moving average.

Oracle Chart

FedEx (FDX) chimed in with its own not-so-great news. The second-largest U.S. package-shipping firm said quarterly sales fell 20% to $8.01 billion, missing analyst estimates of $8.23 billion. That led to a 2.23% decline for FedEx shares, but all was not lost. The company said a global economic recovery is under way and that should bolster demand for FedEx's shipping services.

No, FedEx is not the sexiest stock on the Street, but it is considered a bellwether for the U.S. economy and the fact that FedEx CEO Fred Smith said industrial production should improve by 4% in 2010 is significant, not only for his company's shares, but for the broader economy as well. Transportation stocks are historically viewed as harbingers for the performance of the U.S. economy and if you find yourself in the bullish camp, cheering the Dow toward 10000 and the S&P 500 to 1100, you should also have a rooting interest in seeing the Dow Jones Transportation Average make its way to 4200-4300.

The home to 20 of the largest transportation-related issues was down today, closing below 4000, but the index is up nearly 30% since early July, so a little hiccup like Thursday's trade probably is not anything to get too concerned about.

Transports Chart

Keeping with the mixed bag and not-so-bad decline themes, I need to be fair and highlight a few blue chip names that performed well during Thursday's session. One Dow component that turned in a sterling performance was Caterpillar (CAT). The maker of construction and mining equipment gained a $1.27 to close at $53.89. Oddly enough, I happened to come across a press report a couple of weeks ago where an analyst hypothesized that Caterpillar was a candidate for a dividend cut.

I cannot say for certain if that is going to happen, but it appears Caterpillar shares are poised to clear $55 sooner rather than later and there is some room to run from there before psychological resistance at $60 becomes an issue. Frankly, the chart looks pretty good. After making a double top around $48.95, Caterpillar has surged higher and $50 should act as support.

Caterpillar Chart

Caterpillar is a pretty venerable name and a good day for the stock will not come as a surprise to many investors, but one sector that is not normally associated with strong moves is the airline group and that group was a leader today. Allow me to be honest, it is hard to be a fan of the airlines even when the economy is good and as someone who just returned from vacation, I am definitely a fan of donating $30 to have my bags make the journey with me.

And whenever I think about the perils of investing in this sector, I remember the scene in ''Wall Street'' where Gordon Gekko expressed disdain for airlines. Hey, sometimes art does imitate life. All of this aside, I did mention in the Market Monitor today that AMR Corp. (AMR), parent of American Airlines was up in a big way. News that the company will get $2.9 billion in fresh financing enabling it to stave off another visit to bankruptcy court was the bullish catalyst.

Part of the financing comes in the form of $1 billion from the advance sale of frequent flier miles to Citigroup. Citigroup (C) will issue those miles to holders of the popular American Airlines credit cards. If you ever thought frequent flier miles were worthless, at least in dollar terms, think again. Other major carrier such as Delta (DAL), and United (UAUA) have also done advanced miles sales to raise cash.

I also noted in the Monitor that there was heavy buying in the October 12 calls of Southwest Airlines (LUV), the discount carrier, but perhaps even more noteworthy is the fact that the Claymore Airline ETF (FAA) has gained nearly 50% since June. ETFs get a lot of publicity, but for some reason FAA tends to fly under the radar (no pun intended), though I will pat myself on the back for mentioning it here in early July.

The chart shows a rapid ascent and some overbought Stochastics, but those traits have appeared dozens of times over the past few months and the stocks or ETFs have just kept going higher.

FAA Chart

Taking a look at market technicals, the S&P 500 closed Wednesday 20.1% above its 200-day moving of 889.64. According to Bloomberg, the index has only climbed 20% above the 200-day line three times since World War II, the most recent trip coming in 1986. The resulting gains a year out have been proven robust, ranging between 13% and 20%.

The index may be dealing with some resistance in the 1075-1080 area right now, but it is hard to ignore the recent uptrend and once 1080 is cleared with some vigor, there should be clear sailing to the 1116 area. Prior resistance of 1035 appears to be new support.

S&P 500 Chart

The Dow seems to be having a fight around 9800, the current resistance zone, but from there a move to 10300 could be a possibility. That is not to say there will not be hiccups along the way, there will, especially at 10000. Support can be found at 9575, but it might take some seriously bearish news to bring that number into play over the near-term.

Dow Chart

The Nasdaq went from leader to weakest link to leader again all in a fairly short amount of time. With the all important 2000 level having been cleared weeks ago, 2063 is looking like support. Even with the glum news from Oracle, it still appears that the Nasdaq is on track to make a move to resistance at 2160. From there, a move to the 61.8% retracement level at 2251.84 could be in the works.

Nasdaq Chart

The bottom line there was nothing about Thursday's trade to make me want to say the bears are back. If anything, the dip, mild as it was, probably represents an opportunity to add to currently profitable positions. At this point, there is simply no reason to buck the trend.


New Option Plays

Updating The Watch List

by James Brown

Click here to email James Brown

Editor's Note:

The stock market looks a little tired after its multi-day rally. I still expect corrections to be shallow with fund managers chasing performance. Here's a small list of stocks to watch for potential pull backs:

CNX - Watch for a dip into the $44.00-42.00 zone.

FLS - Looks like it's rolling over under $100. Look for a dip toward $92.50.

JOYG - Breaking out to new highs. Look for a dip near $44.00.

NIHD - Just tagged new 2009 highs yesterday. A dip near $26.00 might be an entry point.

VMC - I've mentioned VMC before. Today could be a short-term reversal. Look for a dip into the $56.00-54.00 zone.

WYNN - Yesterday WYNN produced a bearish reversal pattern. I'd look for a dip and a bounce near $60.00.


In Play Updates and Reviews

Another Day for Targets

by James Brown

Click here to email James Brown

We had three more bullish candidates hit our targets but stocks look tired and traded off their highs for the day.


CALL Play Updates

Alcon Inc. - ACL - close: 139.71 change: +2.78 stop: 129.49

There was no slow down for ACL today. Shares shot to new 2009 highs with a 2% gain. The stock is nearing potential resistance at $140 so don't be surprised to see a dip back toward $136.00. Our first target is $142.50. Our second target is $148.00.

Picked on September 10 at $136.75
Change since picked:       + 2.96
Earnings Date            10/21/09 (unconfirmed)
Average Daily Volume =        299 thousand 
Listed on September 10, 2009         


Allegheny Tech. - ATI - close: 35.25 change: -0.24 stop: 30.99

After a multi-day rally ATI is due for a dip and today's 0.6% decline may not be enough. Shares should have technical support near $33.00 and price support near $32.00. ATI has already exceeded our first target. We're currently aiming for $37.00.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 31 at $ 30.25 *triggered         
Change since picked:      + 5.18
                               /1st target hit @ 33.85 (+11.9%)
Earnings Date           10/21/09 (unconfirmed)
Average Daily Volume =       2.7 million  
Listed on August 27, 2009         


CF Industries - CF - close: 90.06 change: +0.86 stop: 84.75 *new*

CF shot higher past the $90.00 level hitting an intraday and new 2009 high at $91.55. I am not suggesting new bullish positions at this time but we are raising the stop loss to $84.75. Our first target to take profits is at $92.50. Our second target is $98.00. FYI: The P&F chart has a quadruple-top bullish breakout buy signal with a $99 target.

FYI: Agrium (AGU) is trying to buy CF but CF keeps rejecting the offer calling it too late. At the same time CF is trying to buy Terra Industries (TRA) and TRA keeps rejecting the offer calling it too low. Eventually one of these companies is going to give up or they're finally going to make a big enough offer or somebody else might step in and start bidding. There is a risk that someone bids too much and the market could think they overpaid, which might push the stock lower. This M&A dance has been going on for months and it will probably continue for months so I'm not expecting it to have much short-term impact on the stock. However, it's worth noting that CF recently filed a lawsuit to force TRA to hold their annual shareholder meeting. This way CF can try and vote some members onto the board of directors.

Picked on September 05 at $ 85.93
Change since picked:       + 4.13
Earnings Date            10/27/09 (unconfirmed)
Average Daily Volume =        653 thousand 
Listed on September 05, 2009         


Compass Minerals - CMP - close: 58.17 chg: -0.93 stop: 54.75

Target achieved. CMP rallied to resistance near $60.00 and hit $59.95 before paring its gains. Our first target to take profits was at $59.75. The failed rally at $60.00 does look like a short-term bearish reversal and I would expect a dip back toward the $56 or $55 levels. Our second and final target is $64.00. FYI: The Point & Figure chart has turned bullish with a $69 target.

Chart:

Picked on September 03 at $ 55.55
Change since picked:       + 2.62
                               /1st target hit @ 59.75 (+7.5%)
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        415 thousand 
Listed on September 02, 2009         


Danaher Corp. - DHR - close: 68.61 change: +0.27 stop: 62.95

DHR resisted any profit taking with another gain. The stock looks overbought and due for a pull back. I am not suggesting new bullish positions at this time. Our first target is $69.50. The Point & Figure chart is bullish with a $77 target.

Currently we only have half a position open to limit our risk given the aggressive entry point.

Picked on September 05 at $ 66.37 (buy 1/2 position)
               /originally listed at $65.76, gap higher entry @ 66.37
Change since picked:       + 2.24
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        2.4 million  
Listed on September 05, 2009         


Diamond Offshore - DO - close: 95.36 change: -1.49 stop: 87.75

Crude oil reversed from its early highs and oil service stocks hit some profit taking. DO gave up 1.5%. I am not suggesting new positions at this time. Look for a dip near $92.00 as a potential entry point. The plan was to use small position sizes.

We will take some money off the table at $99.90 (1st target). Our second target is $104.50. More aggressive traders can aim for $110. The P&F chart is forecasting a $114 target.

Picked on September 15 at $ 94.69 *adjusted entry point
Change since picked:       + 0.67
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        1.8 million  
Listed on September 12, 2009         


Factset Research - FDS - close: 62.35 chg: +0.10 stop: 57.45

FDS is still showing relative strength with another gain. We should expect profit taking any day now. I'm not suggesting new positions at this time. FDS has already exceeded our first target at $62.00. Our second and final target is $64.75.

Please note that FDS is due to report earnings on September 22nd and we'll plan to exit the day before the company announces.

Picked on September 08 at $ 57.55
Change since picked:       + 4.80
                               /1st target hit @ 62.00 (+7.7%)
Earnings Date            09/22/09 (confirmed)
Average Daily Volume =        331 thousand 
Listed on September 05, 2009         


General Dynamic - GD - close: 64.43 change: +1.14 stop: 57.85

Defense stocks were some of the best performers on Thursday. GD broke through resistance to hit new 2009 highs. Aggressive traders may want to consider positions here. I'm more concerned about how overbought the S&P 500 is. Thus I'm suggesting readers wait and stick to the plan to buy calls on a dip at $61.00.

Our first target is $64.90. Our second target is $69.00. Investors with a longer-term time frame may want to aim a lot higher. GD has produced an inverse H&S pattern that is forecasting an $85

Picked on September xx at $ xx.xx <-- TRIGGER @ 61.00
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        2.3 million  
Listed on September 09, 2009         


Goldman Sachs - GS - close: 181.46 change: +1.59 stop: 166.45

GS continues to defy gravity and posted another gain. Today's close over $180 is technically bullish but the stock looks very overbought from its September lows near $158. I am not suggesting new bullish positions at this time. Our second and final target is $184.00. The $185-190 zone looks like potential resistance. Remember, we want to trade small position sizes.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on September 8 at $166.75
Change since picked:      +14.71
                             /1st target hit @ 179.00 (+7.3%)
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       8.8 million  
Listed on August 29, 2009         


Genesse & Wyoming - GWR - close: 31.72 change: -0.73 stop: 28.90

Railroad stocks continue to under perform. GWR gave up 2.2%. I am not suggesting new bullish positions at this time. Our second target to exit is $34.75.

We want to use small position sizes to limit our risk.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 15 at $ 28.66 /gap down entry
                               /originally listed at $29.30
Change since picked:      + 3.07
                              /take profits 09/16/09 @ 32.45 (+13.2%)
Earnings Date           11/03/09 (unconfirmed)
Average Daily Volume =       230 thousand
Listed on August 15, 2009         


Grainger W.W. - GWW - close: 89.97 change: -0.82 stop: 87.40

After the bullish breakout yesterday GWW hit some profit taking but bulls were buying the dip this afternoon. Another move over $90.35 can be used as a new bullish entry point. Our first target is $93.50. Our second target is $97.50.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on September 1 at $ 86.00 *triggered  
Change since picked:      + 3.97
Earnings Date           10/14/09 (unconfirmed)
Average Daily Volume =       635 thousand 
Listed on August 22, 2009         


Intl. Bus. Mach. - IBM - close: 121.88 chg: +0.06 stop: 117.75

IBM displayed some relative strength with another gain. Odds are pretty good that IBM will retest the $120 level as support. More patient traders might want to wait for a dip closer to $120 to open call positions. Our first target to take profits is at $126.00. Our second target is $129.75. We will plan to exit ahead of IBM's earnings report in mid October.

Picked on September 16 at $121.82
Change since picked:       + 0.06
Earnings Date            10/15/09 (unconfirmed)
Average Daily Volume =        5.3 million  
Listed on September 16, 2009         


iShares Financials - IYF - close: 53.70 change: -0.22 stop: 49.49

Stocks look a little overbought. Readers may want to wait for a dip back toward the $52.50-52.00 zone and buy calls again there. Our first target is $57.00. Our second target is $60.00.

Picked on September 15 at $ 52.60 *triggered  
Change since picked:       + 1.10
Earnings Date            00/00/00
Average Daily Volume =        5.1 million  
Listed on September 01, 2009         


Mettler Toledo - MTD - close: 92.92 change: +0.55 stop: 86.95

Target achieved! MTD rallied to $93.58 before trimming its gains. Our first target to take profits was at $93.50. I am not suggesting new bullish positions at this time. Our second target is $99.00. I am labeling this an aggressive play because volume is pretty light for this stock.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Chart:

Picked on   August 27 at $ 88.50 *triggered  (1/4 normal size)
Change since picked:      + 4.42
                             /1st target hit @ 93.50 (+5.6%)
Earnings Date           11/05/09 (unconfirmed)
Average Daily Volume =       234 thousand 
Listed on August 22, 2009         


Occidental Petrol. - OXY - close: 78.64 change: -0.51 stop: 73.75

Crude oil reversed from its intraday highs and OXY followed suit. I am not suggesting new positions at this time. OXY has already exceeded our first target. Our second and final target is $79.85. More conservative traders may want to exit early right now.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 27 at $ 72.00 *triggered         
Change since picked:      + 6.64
                    /1st target exceeded, gap higher @ 77.23 (+7.2%)
Earnings Date           10/28/09 (unconfirmed)
Average Daily Volume =       5.0 million  
Listed on August 26, 2009         


PPG Inds. Inc. - PPG - close: 59.28 change: -0.61 stop: 54.95

PPG is seeing some profit taking after a nice run from its September lows. I am not suggesting new positions at this time. PPG has exceeded our first target. Our second target is $63.00.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Picked on   August 28 at $ 55.65
Change since picked:      + 3.63
                             /1st target exceeded @ 60.05 (7.9%)
Earnings Date           10/27/09 (unconfirmed)
Average Daily Volume =       1.6 million  
Listed on August 27, 2009         


SPX Corp. - SPW - close: 63.51 change: +0.06 stop: 57.25

Nothing has changed. We're still waiting for a pull back. The plan is to buy calls at $60.50. If triggered our first target is $64.00. Our second target is $67.50.

Picked on September xx at $ xx.xx <-- TRIGGER @ 60.50
Change since picked:       + 0.00
Earnings Date            10/28/09 (unconfirmed)
Average Daily Volume =        570 thousand 
Listed on September 12, 2009         


SOHU.com Inc. - SOHU - close: 70.90 change: -0.02 stop: 63.25

We are waiting for a pull back in SOHU. Our plan is to buy calls on a dip at $67.50.

Our first target is $72.50. Our second target is $77.00.

Picked on September xx at $ xx.xx <-- TRIGGER @ 67.50
Change since picked:       + 0.00
Earnings Date            10/26/09 (unconfirmed)
Average Daily Volume =        577 thousand 
Listed on September 15, 2009         


State Street (Bank) STT - close: 53.79 change: -0.91 stop: 49.45

Target achieved. STT hit our first target at $55.00. However, the stock reversed at this level of resistance. I'm not suggesting new bullish positions at this time.

Our second target is $59.80. Currently the Point & Figure chart is bullish with a $62 target.

FYI: If you have September calls you need to exit completely by tomorrow's closing bell. September options expire after Friday, September 18th.

Chart:

Picked on   August 31 at $ 52.00 
Change since picked:      + 1.79
                             /1st target hit @ 55.00 (+5.7%)
Earnings Date           10/13/09 (unconfirmed)
Average Daily Volume =       5.3 million  
Listed on August 19, 2009         


United Health - UNH - close: 29.34 change: +0.05 stop: 27.49

UNH rallied toward resistance at $30.00 and stalled.

Right now the plan is to buy calls on a breakout with a trigger at $30.55. If triggered our first target to take profits is $34.50. Our second target is $37.50. My time frame is about eight weeks once triggered.

Picked on   August xx at $ xx.xx <-- TRIGGER @ 30.55
Change since picked:      + 0.00
Earnings Date           10/20/09 (unconfirmed)
Average Daily Volume =       9.2 million  
Listed on August 29, 2009         


U.S. Oil Fund - USO - close: 37.49 change: +0.06 stop: 34.49

USO posted another gain but oil traded off its intraday highs. If the dollar continues to bounce the USO will probably retest the trendline of support. I'm not suggesting new bullish positions at this time. Our upside target is $39.95.

Picked on   August 31 at $ 36.50 
Change since picked:      + 0.99
Earnings Date           00/00/00
Average Daily Volume =      11.5 million  
Listed on August 15, 2009         


Waters Corp. - WAT - close: 55.59 change: +0.78 stop: 49.30

WAT is showing a lot more relative strength than expected. Shares have broken out to new relative highs. We're still sitting on the sidelines waiting for a dip. Our plan is to buy calls at $53.50. If triggered our first target is $59.50.

Picked on September xx at $ xx.xx <-- TRIGGER 53.50
Change since picked:       + 0.00
Earnings Date            10/20/09 (unconfirmed)
Average Daily Volume =        809 thousand 
Listed on September 12, 2009         


PUT Play Updates

*Currently we do not have any put play updates*


Strangle & Spread Play Updates

(What is a strangle? It's when a trader buys an out-of-the-money (OTM) call and an OTM put on the same stock. The strategy is neutral. You do not care what direction the stock moves as long as the move is big enough to make your investment profitable.)

Cigna Corp. - CI - close: 32.60 change: +0.06 stop: n/a

There is no change from my prior comments on CI. I'm not suggesting new strangle positions at this time.

The options I suggested were the October $35 calls (CI-JG) and the October $25 puts (CI-VE). Our estimated cost was $1.20. We want to sell if either option hits $2.50 or higher. The closer we can open this trade to $30.00 the better.

Picked on September 08 at $ 29.40
Change since picked:       + 3.20
Earnings Date            11/05/09 (unconfirmed)
Average Daily Volume =        3.8 million  
Listed on September 08, 2009         


Research In Motion - RIMM - close: 82.70 chg: -1.46 stop: n/a

Our strangle play is out of time. We have to exit at the closing bell tomorrow. More conservative traders may want to exit at the open to preserve any remaining capital. The September $80 calls are trading at $2.70bid/2.75ask. You could exit now and recoup our entry cost.

The options suggested were the September $80 calls (RFY-IP) and the September $70 puts (RFY-UN). Our estimated cost was $2.64. We want to sell if either option hits $5.00 or more.

Picked on   August 25 at $ 75.56
Change since picked:      + 7.14
Earnings Date           09/24/09 (confirmed)
Average Daily Volume =      11.7 million  
Listed on August 25, 2009         


CLOSED BULLISH PLAYS

Union Pacific - UNP - close: 62.35 change: -0.85 stop: 59.40

The railroad sector continues to show relative weakness. We're dropping UNP as a bullish candidate.

Chart:

Picked on September 09 at $ 63.00
Change since picked:       - 0.65<-- exit early (-1.0%)
Earnings Date            10/22/09 (unconfirmed)
Average Daily Volume =        3.2 million  
Listed on September 05, 2009