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JEC $83.77 +6.16 Jacobs Engineering Group *** Stop Loss $73 ***

Outstanding week for JEC. A +$6 gain on a crash in oil prices. Definitely no complaint here. Support at $75 held and JEC was a favorite in the Fed bounce. Another normal week in the news with JEC winning four major contracts.

No LEAPS

Breakdown target: $80.00 Hit 11/12

Position: APR 2008 $90 Call JEC-DR @ $6.50

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VLO $65.10 -.86 Valero Energy *** Stopped $64.00 ***

Valero may have only lost 86 cents for the week but that Mon/Tue drop of more than $5 killed us. We were stopped out at $64 on its way to $60.80 and the rebound put it right back into congestion. We have so many positions we will pass adding a refiner back to the list and wait for crack spreads to improve before doing it again.

Breakdown target: $67.50 Hit 11/12

Position: 2009 $75 LEAP Call VHB-AO @ $10.00, exit $8.00 11/26

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COP $80.75 +1.63 Conoco Phillips *** Stop Loss $74.00 ***

That was really close. Conoco declined to $74.21 and only missed our stop by 21 cents before rebounding to close at a new two week high. Conoco submitted a stand alone bid of $42 million to build the Alaskan pipeline. They stand to make a bundle if they can get it done. It would be a decade long endeavor.

Breakdown target: $80 hit 11/12

Position: 2009 $90 LEAP Call OJP-AR @ $8.60

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MRO $55.90 -.47 Marathon Oil *** Stopped $53.50 ***

Same story as Valero. Refiners were crushed early in the week and then rebounded on cheap oil.

Breakdown target: $57 Hit 11/13

Position: 2009 $65 LEAP Call VXM-AM @ $7.50, exit $5.75 11/27

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CNQ $65.47 -7.32 Canadian Natural Resources *** Stopped $70 ***
Reentered at $66 on 11/29

CNQ dropped sharply on Tuesday in response to a new release saying they would cut natural gas drilling in Canada by 44% due to the harsh new tax laws recently enacted. They also said they would reduce capital expenditures from $6.47 billion to $4.5 billion due to the shutdown of drilling. Their oil forecast was significantly higher but traders ignored it. I believe the Canadian tax plan will be revised. Almost every energy company in Canada has slashed drilling plans and that is going to thwart Canada's plan to raise taxes by $1.6 billion per year in the energy sector. It appears that most companies are slashing exploration by about 50% and that has got to hurt not only future expected tax revenues for Canada but current revenues as well.

Breakdown Trigger: $75.50 11/12 email alert

Position: 2009 $90 LEAP Call OKR-AR @ $9.10, exit $6.50, 11/27

New entry 11/29: $66

New Position 11/29: 2009 $90 LEAP Call OKR-AR @ $6.50

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CLB $117.25 -9.38 Core Labs

Now that was painful! On no news Core Labs collapsed by -9 to trade below its 100-day average at $120. Core was a favorite momentum stock and is paying the price as traders took profits from the +75 gain since April. CORE is still clinging to the 100-day although from the bottom. Core is not ties directly to the price of oil so once the funds quit their momentum selling we should see a rebound begin.

Breakdown Trigger: $130 11/12

Position: 2009 $140 LEAP Call ZYM-AH @ $21.30

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FTI $55.58 -.18 FMC Technologies *** Stop Loss $49 ***

Only $1 below our entry and holding on support. No news and no change in play.

Breakdown Trigger: $57 hit 11/12

Position: APR $65 Call FTI-DM @ $4.75

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PBR $96.30 -4.48 Petrobras *** Stop Loss $87 ***

PBR support eroded to $95 from $100 but it is still holding the high ground and the majority of its gains from late October. It is still over our entry point so no harm, no foul. Petrobras announced plans to build 42 ships including tankers, gas transport and service ships. They already have 59 ships it owns and 56 chartered. The program will cost $2.5 billion and require 400,000 tonnes of steel. It has already been delayed for a year do to a lack of available steel.

LEAPs Alert Entry 11/12 @ $95

Position: 2009 $90 LEAP Call VDW-AR @ $17.10

Position: 2009 $110 LEAP Call XVQ-AB @ $10.00

Alert on 11/2 recommending an immediate entry into the $110 LEAP. The prior recommendation had been calling for an entry into the $90 LEAP on a dip to $80. The correct LEAP for the current position is the $110 LEAP.

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SGR $63.42 +3.57 Shaw Group *** Stop Loss $55 ***

Shaw is continuing to hold over the 100-day average and even managed to rebound $8 off the Monday drop. They will report earnings on the 4th so be warned.

LEAPs Alert Entry 11/12 @ $61

Position: 2010 $70 LEAP Call YCW-AN @ $20.40

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FWLT $149.00 +14.00 - Foster Wheeler

FWLT blasted off to a monster $14 gain on no news. The double test of the 100-day average was met with a monster rebound and that pushed FWLT to within $10 of its prior high. Definitely no complaints here.

The board just approved a 2:1 split subject to shareholder approval around January 8th.

Breakdown trigger: $135 hit 11/06

Position: 2009 $150 LEAP Call ZHF-AW @ $29.10

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PTR $191.74 +6.94 - PetroChina *** Stop Loss $170 ***

PTR continues to be range bound between $180-$200 and closed right in the middle of that range. No specific news and no change in play. PTR is still well above the 100-day average, which has appeared to be support on many of the other positions.

Breakdown trigger $194.32 Entered on rebound from $190 on 11/08

Position: 2009 $220 LEAP Call ZJK-AZ @ $32.20

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XOM - $89.16 +.87 Exxon Mobil

Exxon closed near a new 3-week high on Friday as refiners got a boost from cheap oil. Once over resistance at $90 we could see a new trend emerge.

Breakdown trigger: $88 Hit 11/01

Position: 2009 $100 LEAP Call ODU-AT @ $7.90

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CAM - $93.23 -1.00 Cameron International *** Stop Loss $83 ***

After a three week rebound CAM finally gave into some profit taking on Friday. Resistance has formed at $96 and it may take a rebound in oil to break it. No news and no change in play.

Breakdown target: $95 Hit 10/30

Position: 2009 $100 LEAP Call OKA-AT @ $18

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SLB $93.45 -.66 - Schlumberger

SLB is still fighting resistance at $94. No other specific news.

Breakdown target: $95.00 hit Oct-22nd

Position: 2009 $100 LEAP Call VWY-AT @ $15.60

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CVX $87.77 +1.10 - Chevron

CVX like Exxon is moving towards resistance at $88 and a break here could end the two-month downtrend. No specific news. Still no stop.

Breakdown trigger: $87 hit Oct-22nd

Position: 2009 $100 LEAP Call VCH-AT @ $6.40

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OII $63.81 -2.25 Oceaneering International

No news and no movement. I am tempted to close OII but they are a takeover target and the lack of movement is working for both sides. This would be a good spot for somebody to make an offer.

Earnings Nov-1st: +40%

Breakdown trigger: $72 hit on Oct-22nd

Position: APR $80 Call OII-DP @ $5.40

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NOV $68.15 +.09 - National Oilwell Varco

NOV benefited from a Citigroup upgrade to a buy on Thursday and found resistance at $70. Still holding over the 100-day average this is the new challenge for NOV.

Breakout Trigger: $80, hit 10/11/07

Position: 2008 May $90 Call NON-ER @ $7.20

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MDR - $52.30 +5.05 McDermott Intl *** Stop Loss $45 ***

Nice rebound! The service sector stocks really found some buying interest in the Fed rally. Let's hope they keep it.

Earnings: Nov 8th, +37%

Breakout trigger: $53, hit 9/20

Position: 2009 $60 LEAP Call OYZ-AL @ $9.00

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UPL $64.90 -1.63 - Ultra Petroleum *** Stop Loss $62 ***

$7 gas crushed the gas drillers on Thr/Fri. Still holding over support at $64 and the drop in gas prices should not be long. Cold weather is coming. No complaints. No news.

Breakdown target: $52.50 Hit 8/30

Position: Jan 2009 $60 LEAP Call OZH-AL @ $8.00

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CHK $38.13 -.28 Chesapeake Energy

Stifel Nicholas initiated coverage on Thursday with a BUY rating. The CEO Aubrey McClendon was in the market buying shares again to the tune of 50,000 on Wednesday. We can't complain when the CEO is accumulating stock.

Earnings: Nov 7th -34%, beat by 3 cents.

Position: 2010 $35 LEAP Call WZY-AG @ $6.60
10/28 Price update: Expired Oct Put +90 cents, $7.50

Insurance put:
Oct $30 Put CHK-VF @ 90 cents. Expired

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HP $34.83 -.28 Helmerich & Payne *** Stop Loss $29.50 ***

HP continues to hold near 4-month highs after beating earnings in November. Big gains in other service stocks have failed to power HP this week but they are still consolidating from a 15% move in the prior week.

Earnings: Nov-15th, +18%, beat street by +6 cents at 93 cents

Position: Jan 2009 $35 LEAP Call ZQA-AG @ $4.50

Insurance put:
Position: Nov $30 HP-WF. @ .50, Stop $28.50

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HERO $25.02 -.99 Hercules Offshore ** Dropped **

No movement when other service companies were trending higher, some at a fast pace is causing me concern over HERO. I am dropping it today.

Earnings Oct-30th. +63%

Position: 2008 April $30 Call HIQ-DF @ $3.00

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BHP - $72.82 +3.01 BHP Billiton ** Stop Loss $60.00 **

Analysts are warming up to the Rio Tinto acquisition and BHP rebounded +6 from last week's lows. No specific news.

Breakdown target: $55 hit 8/15/07

Position: 2010 $70 LEAP Call LPH-AN @ $9.00


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Non-Energy Positions
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CSCO $28.02 -.67 Cisco Systems *** Stopped $27 ***

Tech drop took us out and Cisco is not showing any positive trend.

Alert entry 11/12 @ $29.11

Position: 2009 $30 LEAP Call VYC-AF @ $5.00, exit $4.00 11/27


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Covered LEAP Calls
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RIMM $113.82 +0.03 Research in Motion *** Covered Call ***

RIMM lost $8 on a Friday downgrade but was still up +03 for the week. I am still a believer and I think support at $110 will hold unless the market implodes.

Alert entry 11/12 @ $29

Covered LEAP Call:

LONG RIMM @ $102.60
SHORT 2009 $150 LEAP Call XTB-AJ @ $18.50

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LVS - $113.40 +2.10 Las Vegas Sands

Still consolidating between $105-$120 for four straight weeks. No reason to fear here so we will stick with it. LVS announced a new high speed ferry service between Hong Kong and Macau. No change in play.

Covered LEAP Call

LONG: 100 Shares LVS @ $117
SHORT: 2009 $140 LEAP Call ZAU-AY @ $20.00 No Stop
 

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