USO $102.41 - Short
You know the drill. Futures expire on Monday. Odds of a decline are still great. Iran has 30 million barrels of crude being held off the market. If they capitulate that much extra oil could push prices lower even though it is low quality high sulfur crude.
This trade has risk! A lot of risk but we should be able to manage that risk by making our entry at the close on Monday. Shorts will have covered and the July contract will become the new front month contract.
Buy at the close on May 19th or a spike to $104.
Buy July $100 Put IYS-SV with a stop loss at $105.50
Target $95 for an exit
FWLT $79.60 +8.60 Foster Wheeler
Definitely no complaints here. FWLT rocketed higher on the Fluor news and never looked back.
Foster Wheeler Limited operates through two business groups, the Global Engineering & Construction Group (Global E&C Group) and the Global Power Group. The Global E&C Group, which operates globally, designs, engineers and constructs onshore and offshore upstream oil and gas processing facilities, natural gas liquefaction facilities and receiving terminals, gas-to-liquids facilities, oil refining, chemical and petrochemical, pharmaceutical and biotechnology facilities and related infrastructure, including power generation and distribution facilities, and gasification facilities. The Global Power Group designs, manufactures and erects steam generating and auxiliary equipment for electric power generating stations and industrial facilities globally. In February 2008, the Company completed the acquisition of Biokinetics. On April 7, 2006, the Company completed the purchase of the remaining 51% interest in MF Power.
Breakout trigger: $71 Hit 5/13
Position: 2010 $80 LEAP Call LWM-AP @ $16.80
PH $85 - Parker Hannifin
Just as PH broke out last week over our $85 trigger they announced the sale of $775 million in debt. Talk about great timing. PH decline back to our entry point and then held its ground on no other news.
Parker-Hannifin Corporation is a full-line diversified manufacturer of motion control products, including fluid power systems, electromechanical controls and related components. In addition to motion control products, the Company also is a producer of fluid purification, fluid and fuel control, process instrumentation, air conditioning, refrigeration, electromagnetic shielding and thermal management products and systems. Its manufacturing, service, distribution and administrative facilities are located in 35 states and in 42 foreign countries. Its motion control technology is used in the products of its three principal business segments: Industrial, Aerospace, and Climate & Industrial Controls. The products are sold as original and replacement equipment through product and distribution centers worldwide. Parker products are supplied to over 427,000 customers in manufacturing, transportation and processing industry. In April 2008, the Company acquired Vansco Electronics and Ventrex Inc.
Breakout trigger: $85 Hit 5/13
Position: 2010 $90 LEAP Call LWU-AR @ $13.50
CRR $49.02 1.02 - Carbo Ceramics
Carbo has some resistance at $50 but with the oil patch looking for ways to pump more oil it should eventually break.
CARBO Ceramics Inc. is a producer and supplier of ceramic proppant and a provider of fracture and reservoir diagnostic services and fracture simulation software through its subsidiary, Pinnacle Technologies, Inc. (Pinnacle). The Company conducts its business within two operating segments: Proppant and Fracture and Reservoir Diagnostics. The Proppant segment consists of manufacturing and selling ceramic proppant for use primarily in the hydraulic fracturing of oil and natural gas wells. Through its Fracture and Reservoir Diagnostics segment, the Company provides fracture mapping and reservoir diagnostic services, sells fracture simulation software and provides engineering services to oil and gas companies worldwide. Sales outside the United States accounted for 34% of the Companys sales during the year ended December 31, 2007. The Companys largest customers for ceramic proppant are BJ Services Company, Halliburton Energy Services, Inc. and Schlumberger Limited.
Breakout trigger: $48 Hit 5/12
Position: Dec $50 Call CRR-LJ @ $5.80