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FLS $119.88 - $9.94 - Flowserve *** Stopped ***

Massive volatility with a $25 range over the last six days. No reason for the decline other than they are related to the energy sector.

Breakout trigger: $128, hit 7/29

Position: JAN $140 Call FLS-AH, $12.30, exit 8/05 @ $8.20

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FWLT $51.96 -4.12 - Foster Wheeler *** Stopped ***

Earning more than doubled but nobody seemed to care given the perceived idea that the rest of the world is now heading into a recession just as the U.S. recovers. Strong post earnings drop on no reason took us out.

Breakout trigger: $60, hit 7/30

Position: 2010 $70 LEAP Call LWM-AN $11.70, exit 8/04, $9.40

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RIG $127.16 -$10.45 - Transocean *** Stopped ***

RIG imploded after reporting record earnings that beat the street with $3.45 per share to estimates of $3.23. Net income was $1.1 billion for the quarter. Rates on its deepwater rigs rose to $600,000 per day. I can't even comprehend that number. Revenue more than doubled and RIG tanks -$10. Go figure.

Breakout trigger: $140, hit 7/30

Position: 2010 $160 LEAP Call YDR-AL $22.40, exit 8/05, $17.00

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CHK $43.29 -5.93 - Chesapeake Energy **** Stopped ****

CHK broke support at $45 on the continued drop in gas prices. No love left in the sector.

Breakdown trigger: $51 hit 7/22

Position: 2010 $60 LEAP Call WZY-AL @ $8.90, exit 8/05, $6.50

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BTU $58.58 -6.19 - Peabody Energy **** Stopped ****

After reporting earnings that more than doubled two weeks ago BTU declined to break support at $60 on no specific news. Coal companies are tied to the price of natural gas and you know what happened to gas. It is not rational since the coal is presold as much as 2 years in advance. They are not selling coal today that they just dug up.

Earnings July 23rd, more than doubled Q2-2007.

Breakout trigger: $68 hit 7/21

Position: 2010 $80 LEAP Call LLW-AP, $14.80, exit 8/5 $11.00

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USO $92.68 -8.36 - US Oil Fund *** Stopped ***

Unfreaking believable. After closing over $100 last Friday the USO dropped $8 to close under $93 this Friday. If you compare the charts with crude the USO is already well below the comparative level on the crude chart. Evidently the mix of assets and the different type of investor has taken its toll.

Breakdown trigger: $101, hit 7/23

Position: OCT $110 Call IYS-JF, $6.30, exit 8/05, $3.30

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MOS $104.42 -18.27 - Mosaic Industries *** Stopped ***

MOS was hammered for a $20 loss in only two days after posting record earnings. The trade here is clear. Short anybody that reports earnings in a commodity sector regardless of their good news.

Breakdown trigger: $125 hit 7/08

Position: 2010 $160 LEAP Call KCA-AL @ $27.45, exit 8/04, $25.21

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COP $80.91 -.24 - ConocoPhillips

Surprise, surprise! No stop and a minor 24-cent loss. Support at $80 is holding.

Earnings July 23rd, $3.50 per share

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

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ENER - $62.99 -5.42 Energy Conversion Devices

+$5.54 last week, -5,42 this week but still managing to avoid the stop loss at $58. A $10 range for the last week as any energy stock is pummeled. br>
Breakout trigger: $68.50 hit 6/16

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

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CRR $51.75 +3.45 - Carbo Ceramics

Taking a page from the NER play above CRR gained +3.42 last week only to lose $3.45 this week. Support still holding at $51 despite the implosion in oil.

Breakout trigger: $48 Hit 5/122

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


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Non-Energy Positions
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