New Energy Plays
None - See Watch List
New Non-Energy Plays
VIX 72.67 - Volatility Index
The CBOE Volatility Index is showing an almost perfect double top at 80 as of last Thursday. I am betting that it is not going higher even if we do experience some additional market volatility through year-end. I am suggesting we buy some January puts just in case the markets find some traction here at five-year lows.
Buy JAN $50 PUT VIX-MJ currently $3.90
Chart of the VIX
New Watch List Plays Triggered
TS $17.75 - Tenaris
Nice spike higher to almost $24 before the market crashed the sector. Solid resistance at $24. Breakdown trigger of $20 hit on Thursday's dump.
Tenaris S.A. (Tenaris) is a global manufacturer and supplier of steel pipe products and related services for the energy industry, as well as for other industrial applications. Its customers include oil and gas companies, as well as engineering companies engaged in constructing oil and gas gathering, transportation, and processing facilities. Its principal products include casing, tubing, line pipe, and mechanical and structural pipes. It operates an integrated worldwide network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in North and South America, Europe, Asia and Africa, and a direct presence in major oil and gas markets. Tenaris is organized in three major business segments: Tubes, Projects and Other. In May 2007, the Company acquired Hydril Corporation (Hydril), a manufacturer of premium connections for steel pipe products. On April 1, 2008, it sold Hydril’s pressure control business to General Electric Company.
Breakdown trigger: $20
Position: JUNE $25 Call TS-FE, 4.80 11/19
Chart of TS
SMG $26.29 - Scotts Miracle Gro
Even a miracle plant food could not keep the market from knocking nearly 20% off SMG from the weekly high. Our entry point at $25 was triggered on Friday.
The Scotts Miracle-Gro Company (Scotts Miracle-Gro) is a marketer of lawn fertilizer, grass seed and growing media products within the United States. During the fiscal year ended September 30, 2006 (fiscal 2006), the Company divided its business into North America; Scotts LawnService; International, and Corporate & Other business segments. Its major customers include home improvement centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, food and drug stores, commercial nurseries and greenhouses, and specialty crop growers
Breakdown trigger: $25, hit 11/21
Position: 2010 $30 LEAP Call WOF-AF, $5.20
Chart of SMG
RIMM - Research In Motion
RIMM said last week that even though they were not immune to the economic slowdown they expected new products to maintain their momentum. I doubt many business people are rushing out to cancel their Blackberry contracts in exchange for a dumb phone. The news showed people standing in line to buy the new BlackBerry Storm with an iPhone type touch screen. Strong support at $40
Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, short message service (SMS) messaging, Internet and intranet-based applications. RIM technology also enables an array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM’s portfolio of products, services and embedded technologies are used by organizations worldwide and include the BlackBerry wireless solution, software development tools, and other software and hardware. RIM operates offices in North America, Europe and Asia Pacific.
Breakout trigger: $46, hit 11/18
Position: 2010 $60 LEAP Call YKD-AW, $11.20