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FWLT $55.72 -$2.22 - Foster Wheeler *** Stopped ***

New 4-month low as the sector imploded on the Thursday crash. No news.

Earnings are Aug-5th

Breakdown trigger: $60 hit 7/16

Position: 2010 $70 LEAP Call LWM-AN @ $12.80, exit 8.69 7/24

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HP $57.94 -2.25 - Helmerich Payne *** Stopped ***

The Thursday crash hit our stop at $55 and took us out. I am still positive about HP and I think this is still a good place to buy but I am not reentering ahead of earnings next Thursday.

Earnings July 31st

Breakdown trigger: $62 hit 7/17

Position: 2010 $70 LEAP Call LQB-AN $11.40, exit 8.40 7/24

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XLE $73.81 -$3.09 - Energy Select SPDR *** Stopped ***

This play was over before it started. The continued drop in oil crushed the sector despite anticipation for earnings next week.

The XLE is a group of 36 companies in the energy sector. Exxon is the largest component and Tesoro the smallest. See the complete list here.

http://www.sectorspdr.com/shared/pdf/factsheets/FactSheet_XLE.pdf

Position: Dec $80 Call XTG-LB currently $6.10, exit $4.32, 7/24

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SD $47.89 -3.69 - SandRidge Energy *** Stopped ***

A -33% correction in nat gas over the last three weeks was just too much for the gas stocks to handle.

New position: 7/20
Position: 2010 $60 LEAP LWE-AL @ $13.40, exit 10.80 7/23

Old Position:
Breakdown trigger: $60 Hit 7/07
2010 $70 LEAP LWE-AN @ $13.00, exit $11.70 7/16

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MOS $122.05 -5.08 - Mosaic Industries

The decline rate slowed slightly and earnings are on Monday. We will either be a lot higher by Tuesday or stopped out at $112.

It was reported last Friday that the price of potash has risen +21% in recent weeks and the exporter for MOS, POT and AGU has told customers that all further sales in 2008 will be at the new price or higher. There is simply not enough product and too many people increasing their food consumption. As the world moves towards 7 billion people in 2012 this problem is only going to get worse. There were only 6 billion in 1999. Adding a billion mouths to feed every 12 years will require a lot more fertilizer.

Earnings July 28th

Breakdown trigger: $125 hit 7/08

Position: 2010 $160 LEAP Call KCA-AL @ $27.45

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FLR $79.81 -4.44 - Fluor *** Stopped ***

Stopped out on Thursday with the market crash.

Earnings August 11th

Breakdown trigger: $175 hit 7/07 (2:1 Split = $87.50)

Position: 2010 $200 LEAP Call LLF-AZ @ $35
Converted to:
(2) 2010 $100 LEAP Call LLF-AT @ $17.50, exit $13.40, 7/24

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COP $81.98 -$1.93 - ConocoPhillips

COP earnings were stellar and analysts are now predicting they will earn $13 a share for all 2008. That is a whopping PE of 6. Yes, 6! They earned $5.44 billion for the quarter and all they get is a 6. Production volumes did decline slightly as a function of older fields going into decline and lost production due to extremely high prices triggering higher royalty payments. The higher the price of oil the more oil the host country gets to keep for themselves. COP should be rallying but instead it is hugging support at $80. Something needs to kick this sector off the sell button and back into buy mode.

Earnings July 23rd, $3.50 per share

Position: 2010 $90 LEAP YRO-AR @ $11.35

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HK $33.63 -6.07 Petrohawk Energy *** Stopped ***

33% drop I nat gas crushed the gas stocks. I believe $30 is strong support but gas has to firm first.

Breakout trigger: $40.75 Hit 6/23

Position: DEC $50 Call HK-LJ @ $4.50, exit 3.20 7/23

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ENER - $62.87 -4.15 Energy Conversion Devices

Definitely no complaints here. Trend is still up and ENER tried to resist the market drop.

Breakout trigger: $68.50 hit 6/16

Position: 2010 $80 LEAP Call KYU-AP @ 23.10

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CRR $51.73 -1.11 - Carbo Ceramics

Very close to a stop but still holding in its recent range. No complaints!

Breakout trigger: $48 Hit 5/12

Position: Dec $50 Call CRR-LJ @ $5.80
 

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