The dollar decline and commodity rise was good news for our play list. A few of the miners are zeroing in on our final targets.


Closed Plays


None, there were no closed plays.


Play Updates


ACGY $13.58 -0.21 -- Acergy S.A.

Investors have a decision to make. ACGY is due to report earnings on October 14th. Do you exit ahead of the report or do you hold over the report. The stock is pretty close to our target at $14.50. I am suggesting the following. We will go ahead and exit at $14.50 should ACGY get there in the next day or two. If not we will plan to exit on Tuesday, October 13th at the closing bell. In the meantime I'm raising our stop loss to $9.95. I'm not suggesting new LEAPS positions at this time.

April 25th, 2009 - entry price on ACGY @ 7.61, option @ 1.05
symbol: QLS-AB, 2010 JAN $10 LEAP call - current bid/ask $3.70/4.20
-stop loss on ACGY @ 9.95

Chart of ACGY


ACI $23.28 -0.16 -- Arch Coal Inc.

Coal stocks turned in a tremendous week. Shares of ACI are poised to challenge their 2009 highs near $24.00 soon. I am raising our stop loss to $17.95.

Our long-term target is the $30 region.

May 14th, 2009 - entry price on ACI @ 16.00, option @ 1.30
symbol: ACI-AE, 2010 JAN $25 LEAP call - current bid/ask $1.80/1.90
-stop loss on ACI @ 17.95

-or-

May 14th, 2009 - entry price on ACI @ 16.00, option @ 2.40
symbol: OSE-AF, 2011 JAN $30 LEAP call - current bid/ask $3.20/3.40
-stop loss on ACI @ 17.95

Chart of ACI:


ANR $38.17 -0.80 - Alpha Natural Resources, Inc.

ANR is another coal stock that turned in a strong week. Short-term the stock is facing resistance near $40.00 but should have support near $36.00. I'm dropping the trigger to buy more LEAPS at $30.50. I am raising our long-term target from $45-50 to $50-60.

Aug. 25th, 2009 - entry price on ANR @ 34.00, option @ 5.10
symbol: HIC-AG, 2010 JAN $35 LEAP call - current bid/ask $8.20/9.20
-stop loss on ANR @ 29.50

bought 1/2 LEAP position on 08/25/09 (option price @ 5.10)

-or-

Aug. 25th, 2009 - entry price on ANR @ 34.00, option @ 7.00
symbol: VJV-AH, 2011 JAN $40 LEAP call - current bid/ask $8.80/9.30
-stop loss on ANR @ 29.50
bought 1/2 LEAP position on 08/25/09 (option price @ 7.00)

Chart of ANR:


BAC $17.50 +0.17 - Bank of America Corp.

BAC has recovered sharply from its October lows near $15.60. Can the rally continue? The company is due to report earnings on Friday, October 16th before the opening bell. Readers might want to buy some super cheap October puts on Thursday night just in case BAC tanks on the earnings report. Keep in mind October options expire after Friday.

I'm not suggesting new positions at this time. I'm adjusting our long-term target to the $25-30 zone. I want to remind readers that this is a long-term, two-year trade.

Note our new stop at $11.90.

Jan 25th, 2009 - entry price on BAC @ 6.24, option @ 2.38
symbol: VBA-AB, JAN 2011 $10 LEAP call - current bid/ask $8.50/8.60
-stop loss on BAC @ 11.90

Chart of BAC


BG $64.01 -0.10 -- Bunge Limited

BG could have short-term resistance near $65.00 and its 50-dma so don't be surprised if the stock dips back toward $62-60 again. Fortunately it looks like the $60.00 level is holding as new support. More conservative traders might want to raise their stop loss toward $59.00.

If BG can close over $65.00 again I'd consider new long-term LEAPS positions. Our target is the $85-90 zone.

Sep 15th, 2009 - entry price on BG @ 63.00, option @ 5.90
symbol: BGW-DN, 2010 APR $70 LEAP call - current bid/ask $4.30/4.60
-stop loss on BG @ 56.99

Chart of BG:


CLF $35.54 -0.14 -- Cliffs Natural Resources Inc.

Steel and material stocks were relative strength leaders last week. CLF broke out to new 2009 highs.

I am suggesting we sell half our position at $39.75. We'll sell the second half at $44.75. More aggressive traders may want to aim for $50.

Sept. 5th, 2009 - entry price on CLF @ 26.19, option @ 4.84
symbol: CLF-AE, 2010 JAN $25 LEAP call - current bid/ask $11.20/11.40
-stop loss on CLF @ 22.24 (FYI: Gap open entry)

Chart of CLF:


CNX $49.15 -0.36 -- Consol Energy Inc.

CNX, another coal stock, turned in a huge performance last week. The stock is now testing resistance near $50.00. This would be a logical spot to expect a dip. Short-term the $46 level could offer some support.

CNX has already hit our first target at $48.50. We will plan to sell the second half or our position at $57.50.

Sep 1st, 2009 - entry price on CNX @ 36.50, option @ 5.75
symbol: CNX-AG, 2010 JAN $35 LEAP call - current bid/ask $14.90/15.10
-stop loss on CNX @ 34.75

Target hit 09/16/09 @ 48.50, option price $14.50 (+152%)

-or-

Sep 1st, 2009 - entry price on CNX @ 36.50, option @ 7.80(estimate)
symbol: VTL-AH, 2011 JAN $40 LEAP call - current bid/ask $15.70/16.30
-stop loss on CNX @ 34.75

Target hit 09/16/09 @ 48.50, option price $15.40 (+97%)

Chart of CNX


CRS $23.94 -0.56 -- Carpenter Technology Corp.

CRS continues to bounce from support near $22.00. I'd prefer to open new positions near $20.00 but another bounce from $22 could work. Our long-term target is the $35.00-40.00 zone.

Sep 1st, 2009 - entry price on CRS @ 20.50, option @ 3.10
symbol: CRS-CD, 2010 MAR $20 LEAP call - current bid/ask $5.30/5.50
-stop loss on CRS @ 17.50

Chart of CRS:


DISH $20.03 +0.01 -- Dish Network Corp.

DISH is still testing round-number resistance at $20. After a five-week run higher the stock looks a little tired. I'm not suggesting new positions at this time. Our long-term target is the $25.00-30.00 zone.

August 22nd, 2009 - entry price on DISH @ 17.18, option @ $3.20
symbol: HSW-AC, 2010 JAN $15 call - current bid/ask $5.30/5.60
-stop loss on DISH @ 15.45.

Chart of DISH:


DO $100.11 -0.61 -- Diamond Offshore

DO broke out to new 2009 highs. The stock is now testing round-number, psychological resistance at the $100 level. I'd expect another dip back toward the $96-95 zone but the trend is up. Please note our new stop loss at $87.00. I'm not suggesting new positions at this time.

If you're concerned that DO might breakdown from here then consider some cheap October puts (that expire in two weeks).

Our first target is $109.00. Readers might want to consider the 2011 January calls if you're launching new positions.

FYI: New January 2010 options have been added with the normal DO- root symbol. If you're going to buy new option positions I'd use these new symbols. The new 2010 January $90 call is DO-AA. The new 2010 January $100 call is DO-AC.

If you're curious about the KWJ- root symbol the CBOE created them back in February 2009 to account for DO's special cash dividend in March 2009. There was another special cash dividend in July 2009 and the KWJ series now represents 100 shares of DO plus $562.50 in cash.

Sep 2nd, 2009 - entry price on DO @ 86.50, option @ 12.30
symbol: KWJ-AR, 2010 JAN $90 LEAP call - current bid/ask $16.50/18.10
-stop loss on DO @ 87.00

-or-

Sep 2nd, 2009 - entry price on DO @ 86.50, option @ 5.20
symbol: KWJ-AT, 2010 JAN $100 LEAP call - current bid/ask $10.40/10.80
-stop loss on DO @ 87.00

Chart of DO:


EMR $39.10 +0.08 -- Emerson Electric Co.

EMR has been under performing the market. Shares are still stuck in a three-week down trend of lower highs. I would wait for a close over $40.00 before launching new LEAPS positions. Or you could still use a dip near $37.00 but if EMR violates the 50-dma the situation will turn more bearish. Our target is $47.50. EMR doesn't move super fast so I'm listing the 2011 LEAPS.

Sept. 8th, 2009 - entry price on EMR @ 38.00, option @ $4.50
symbol: VHH-AH, 2011 JAN $40 call - current bid/ask $4.40/4.60
-stop loss on EMR @ 33.50.

Chart of EMR:


FAS $86.42 +2.19 - Direxion Fincl.Bull 3x ETF

! Important Exit Alert !
The rebound in the financials has produced a dramatic bounce for the FAS. I am suggesting that investors exit the FAS at $90.00. More aggressive traders may want to only exit 1/3 of their original position and keep the remaining third with a $110 or $120 target. I'm suggesting a complete exit at $90.00. It's certainly possible that financials could keep rising but odds are growing that we could see profit taking after most of the big banks report earnings.

I am not suggesting new bullish positions in FAS at this time.

Previous Comments on FAS:
Currently we have sold one third of our position at $60.00 (pre-split price of $12.00) FYI: On July 9th, 2009 the FAS performed a 1:5 reverse split.

FYI: The FAS is based off and moves with the Russell 1000 Financial Services index.

Our plan called for buying the ETF instead of the options.

Current position in the FAS = $2.64 entry (stop loss: 7.00)
post-split prices are: $13.20 entry (stop loss: 35.00)

Exit 1/3 position @ 60.00 (+354%) /pre-split: 12.00

Chart of FAS

Chart of RIFIN (Russell 1000 financial services)


FCX $74.34 -0.64 - Freeport McMoran

The bounce in FCX has been impressive with an October low near $63.00. Shares rallied to new 2009 highs in the wake of gold's surge to new record highs. Readers may want to start scaling out of positions now. It is our plan to exit the remainder of our position at $77.00. I'm raising the stop loss to $61.95. I'm not suggesting new positions at this time.

June 22nd, 2009 - entry price on FCX @ 46.00, option @ 6.00
symbol: FCX-AK, 2010 JAN $55 LEAP call - current bid/ask $20.65/20.85
-stop loss on FCX @ 49.95

09/05/09 - Take Profits (sell half) at $66.00, option @ 15.00 (+150%)

-or-

June 22nd, 2009 - entry price on FCX @ 46.00, option @ 10.00
symbol: OBQ-AL, 2011 JAN $60 LEAP call - current bid/ask $22.40/23.95
-stop loss on FCX @ 49.95

09/05/09 - Take Profits (sell half) at $66.00, option @ 18.50 (+85%)

Chart of FCX:


FSLR $156.69 - 0.04 -- First Solar

The news that FSLR is being added to the S&P 100 index hasn't helped the stock much. Shares are still struggling under the four-month trendline of lower highs and the $160 level.

We're not suggesting new positions at this time. At the moment we're long the 2010 January $100 put and we have a covered call play that should be fine if FSLR stays above $100.

Covered Call position:

Long 100 shares of FSLR @ $128.00
Short 2010 $150 LEAPS Call LZL-AA @ $40.70
Profit if called is $40.70 in option premium + $22 in stock (+49%)

Put Spread position:

Long 2010 $100 LEAPS Put LQM-MT @ $32.90
Short 2010 $250 LEAPS Put LZL-MJ @ $135.70, net credit $103

- Update 08/15/09 -
Cover the 2010 $250 Put at $109.40. Keep the $100 put.

Currently the 2010 Jan. $100 put is worth (bid) $1.75.
If you're curious the 2010 Jan. $150 call is at $20.70.

Chart of FSLR


GT $17.23 +0.15 -- Goodyear Tire & Rubber Co.

GT is recovering nicely from its October lows. Shares are nearing potential resistance near $17.50.

I'm not suggesting new LEAPS positions at these levels. We have two targets. The plan is to sell half at $22.75 and half at $26.75.

June 6th, 2009 - entry price on GT @ 12.94, option @ 2.20
symbol: GT-AC, 2010 $15 LEAP call - current bid/ask $3.10/3.30
-stop loss on GT @ 11.90
-or-
June 6th, 2009 - entry price on GT @ 12.94, option @ 2.65
symbol: VYR-AD, 2011 $20 LEAP call - current bid/ask $3.10/3.50
-stop loss on GT @ 11.90

Chart of GT:


HOS $27.62 -0.24 -- Hornbeck Offshore Services

HOS has rallied back to the top of its trading range and resistance near $28.00. Shares look poised to move higher but it's worth noting that volume has been falling on the rebound. Our long-term target is $35.00.

June 27th, 2009 - entry price on HOS @ 21.20, option @ 4.90
symbol: HOS-AD, 2010 JAN $20 LEAP call - current bid/ask $7.60/8.50
-stop loss on HOS @ 19.95
-or-
June 27th, 2009 - entry price on HOS @ 21.20, option @ 2.70
symbol: HOS-AE, 2010 JAN $25 LEAP call - current bid/ask $4.00/4.50
-stop loss on HOS @ 19.95

Chart of HOS:


INTC $20.17 +0.29 -- Intel Corp.

The semiconductor stocks have also produced a dramatic turnaround thanks to strength in shares of Intel. The stock is back above $20.00 and threatening to hit new 2009 highs. The company reports earnings after the closing bell on October 13th. Wall Street's estimates are for a profit of 27 cents a share.

More conservative traders may want to consider buying some cheap October puts before the close on Tuesday to protect yourself from a major disappointment in Intel's earnings. I suspect that Intel will deliver good news so I'm not suggesting any puts.

I am not suggesting new long-term positions at this time. Our long-term target is the $24-26 zone.

FYI: Shares of Intel don't move very fast. Readers might want to consider turning this play into a calendar or diagonal spread to further maximize your gains.

June 13th, 2009 - entry price on INTC @ 16.31, option @ 1.36
symbol: VNL-AD, 2011 LEAP $20 call - current bid/ask $2.82/2.88
-stop loss on INTC @ 15.90.

Chart of INTC:


LNN $38.29 +1.00 -- Lindsay Corp.

LNN has begun to bounce but I remain very cautious. At the moment I'm thinking we may want to consider an early exit as the stock nears what should be resistance near $40.00. I'd rather cut our losses early and look elsewhere. I am not suggesting new positions at this time.

August 7, 2009 - entry price on LNN @ 41.55, option @ 8.80
symbol: NRR-AG, 2010 JAN $35 LEAP call - current bid/ask $ 5.40/ 5.90
-stop loss on LNN @ 34.50
-or-
August 7, 2009 - entry price on LNN @ 41.55, option @ 6.00
symbol: NRR-AH, 2010 JAN $40 LEAP call - current bid/ask $2.70/3.30
-stop loss on LNN @ 34.50

Chart of LNN:


MDR $25.54 -0.36 - McDermott Intl. Inc.

MDR has managed to break the three-week down trend and technical indicators are improving. More conservative traders might want to raise their stops closer to $22.00.

We want to sell 50% to 75% of our position at $29.75. We'll sell the remainder at $34.00. FYI: The Point & Figure chart has a $38 target.

April 4th, 2009 - entry price on MDR @ 15.56, option @ 2.70
symbol: MDR-AD, 2010 $20 LEAP call - current bid/ask $6.10/6.30
-stop loss on MDR @ 19.00

Chart of MDR:


MSFT $25.55 -0.12 -- Microsoft Corp.

MSFT is flirting with its 2009 highs near $26.00. The trend of higher lows is still intact so shares may continue to rally into its earnings report still two weeks away. I'm not suggesting new long-term positions at this time.

This should be a long (18-month) trade. MSFT doesn't move that fast (normally). Investors might want to turn this into a calendar or diagonal spread, selling calls against your LEAPS position. My long-term target is the $30 region.

June 2nd, 2009 - entry price on MSFT @ 21.60, option @ 2.20
symbol: VMF-AE, 2011 Jan. $25 call - current bid/ask $4.70/4.90
-stop loss on MSFT @ 19.95.

Chart of MSFT:


MT $37.42 -0.44 -- ArcelorMittal

MT produced a pretty good bounce last week but I'm still cautious here. The previous trendline of support could become new resistance. I'm not suggesting new positions at this time. Our long-term target is the $50 region.

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.70
symbol: MT-AH, JAN 2010 $40 call - current bid/ask $2.40/2.55
-stop loss on MT @ 29.50

-or-

June 17th, 2009 - entry price on MT @ 30.50, option @ 2.00
symbol: MT-AJ, JAN 2010 $50 call - current bid/ask $0.40/0.55
-stop loss on MT @ 29.50

Chart of MT:


NYX $28.11 -0.29 -- NYSE Euronext

The bounce in NYX is struggling but on an optimistic note there was no follow through on the bearish breakdown. I'm not suggesting new long-term positions at this time. Our long-term target is the $35.00-40.00 zone.

Apr. 11th, 2009 - entry price on NYX @ 21.51, option @ $1.81
-- NZV-AD, 2010 $30.00 LEAP call - current bid/ask $1.36/1.40
-stop loss on NYX at $23.65 *new*

Chart of NYX:


PBR $47.96 +0.52 -- Petroleo Brasiliero

It was a strong week for PBR. This Brazilian oil company saw its stock breakout to new 2009 highs and close over significant resistance. The option values have started to recover but we need to amend our exit strategy. I'm suggesting we sell half our position at $54.50. We'll sell the second half at $59.50.

Apr. 4th, 2009 - entry price on PBR @ 35.10, option @ $2.80
symbol: PMJ-AJ, 2010 $50.00 LEAP call - current bid/ask $2.60/2.75
-stop loss on PBR at $33.50

Chart of PBR:


PCU $33.24 -0.02 - Southern Copper Corp.

Prepare to exit. Our second and final target is $34.00. More aggressive traders could aim higher but the stock looks overbought here. Of course if copper and gold continue to rally PCU will likely follow.

April 20th, 2009 - entry price on PCU @ 19.00, option @ 1.95
symbol: PCU-AE, JAN 2010 $25 LEAP call - current bid/ask $8.50/8.80
-stop loss on PCU @ 22.00

Target Hit @ 29.75 on 08/24/09. Sold 1/2 at $6.00 (+207%)

Chart of PCU:


PEP $60.59 +0.20 -- PEPSICO Inc.

The rally in PEP stalled after the company reported earnings last week. PEP beat the estimate by 5 cents but revenues missed Wall Street's expectations. Management reaffirmed their full-year guidance. Shares of PEP have been trading sideways the last few days.

More conservative traders might want to raise their stops toward the $55 region. Please note I'm fine-tuning our target to $69.90. We'll use a stop loss at $51.50. This is an 18-month bet.

July 7th, 2009 - entry price on PEP @ 57.25, option @ $4.50(estimate)
symbol: VP-AL, 2011 $60.00 LEAP call - current bid/ask $5.70/6.00
-stop loss on PEP at $51.50

Chart of PEP:


RAI $47.59 +0.28 -- Reynolds American Inc.

Whoa! What happened to RAI? When the market reversed higher RAI took it to heart and leapt out in front. I seriously doubt this big bounce was fueled by news that RAI raised their dividend by 5 cents. The stock has broken out to new 2009 highs. We could see RAI hit our first target soon.

I'm not suggesting new LEAPS positions at this time. Our first target to take profits is at $49.50 (sell half). Our second and final target is $57.50.

July 24th, 2009 - entry price on RAI @ 42.50, option @ $1.45(estimate)
symbol: RAI-BI, 2010 FEB $45.00 LEAP call - current bid/ask $3.70/3.90
-stop loss on RAI at $39.75

or

July 24th, 2009 - entry price on RAI @ 42.50, option @ $4.50(estimate)
symbol: OWO-AH, 2011 JAN $40.00 LEAP call - current bid/ask $7.90/8.50
-stop loss on RAI at $39.75

Chart of RAI:


RIG $90.28 -1.83 -- Transocean Ltd.

Oil service stocks produced a nice surge midweek. RIG broke out to new 2009 highs. Short-term the stock could find support in the $87-85 zone. I'm adjusting our exit strategy. We want to sell half at $98.00. We'll sell the second half at $109.00. I am raising our stop loss to $74.90.

July 3rd, 2009 - entry price on RIG @ 70.50, option @ 5.40
symbol: RIG-AP, JAN 2010 $80 call - current bid/ask $13.30/13.50
-stop loss on RIG @ 74.90.

-or-

July 3rd, 2009 - entry price on RIG @ 70.50, option @ 3.90
symbol: RIG-AZ, JAN 2010 $85 call - current bid/ask $ 9.90/10.20
-stop loss on RIG @ 74.90.

Chart of RIG:


SLB $62.89 +0.24 -- Schlumberger Ltd.

SLB is another oil service stock that produced a dramatic rebound. Shares are testing their 2009 highs near $63.00. I'm raising our stop loss to $52.40.

Currently our exit strategy has three parts. The plan was to sell one third of our position at $59.00, which was originally our first target. We'll sell another one third at $69.00. We'll exit our final third at $77.50.

April 20th, 2009 - entry price on SLB @ 45.01, option @ 3.00
symbol: SLB-AL, JAN 2010 $60 LEAP call - current bid/ask $5.10/5.30
-stop loss on SLB @ 52.40

1st exit @ $59.00 (1/3 of position) option @ $7.25 (+141% estimate)

Chart of SLB:


SPW $58.58 -0.17 -- SPX Corp.

The bounce in SPW has been pretty anemic. If shares fail to breakout over $60.00 soon we'll probably exit early. I'm not suggesting new long-term positions at this time. Our long-term target is the $79.00 mark.

Oct 2nd, 2009 - entry price on SLB @ 58.50, option @ 5.70
symbol: SPW-CL, 2010 MAR $60 LEAP call - current bid/ask $5.30/5.60
-stop loss on SPW @ 52.40

Chart of SPW:


TEX $21.92 +1.09 -- Terex Corp.

We asked for a bounce and TEX delivered. Shares soared from $18.00 to a new high near $22.00 last week. I would not open new positions at this time. Our upside target is the $28.00-30.00 zone.

Sept. 11th, 2009 - entry price on TEX @ 18.25, option @ 4.40
symbol: HAG-AC, JAN 2010 $15 LEAP call - current bid/ask $7.20/7.50
-stop loss on TEX @ 14.25

-or-

Sept. 11th, 2009 - entry price on TEX @ 18.25, option @ 4.10
symbol: VXQ-AD, JAN 2011 $20 LEAP call - current bid/ask $6.20/6.90
-stop loss on TEX @ 14.25

Chart of TEX:


UYG $6.10 +0.10 - ProShares Ultra Financials (2x) ETF

Volume has been fading fast on the bounce. I'm concerned the rally is losing steam. We've been pondering an exit in UYG and it's time to amend it. I'm suggesting investors take profits at $6.25. More conservative traders may want to exit completely. The newsletter is suggesting readers only sell half. I'm also raising the stop loss to $3.99. I am not suggesting new positions at this time.

Don't forget that the UYG trades off the DJUSFN index.

Our strategy called for buying the ETF instead of the options.

Current position in the UYG = $1.50 entry (stop loss: 3.99)

Chart of UYG:


VOD $21.35 -0.18 -- Vodafone Group

The correction in VOD continues. The stock has pulled back toward the $21.00 level, which happens to be the 50% retracement of the July-September rally. More aggressive traders might want to consider bullish positions on a bounce from here. Please note that I'm raising our stop loss to $19.40. Our target is the $27.50 region.

July 10th, 2009 - entry price on VOD @ 18.25, option @ 1.10
symbol: VOD-AD, 2010 JAN $20 LEAP call - current bid/ask $1.85/1.95
-stop loss on VOD @ 19.40

Chart of VOD:


WFR $16.30 +0.43 -- MEMC Electronic Materials Inc.

I am still looking for a bounce near $17.00. More importantly I'm looking for an exit at the $17.00 mark. I'm not suggesting new positions at this time.

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 2.50
symbol: CJC-AD, 2010 JAN $20 LEAP call - current bid/ask $0.65/0.75
-stop loss on WFR @ 14.95

-or-

June 23rd, 2009 - entry price on WFR @ 17.50, option @ 3.43
symbol: ZET-AE, 2011 JAN $25 LEAP call - current bid/ask $1.45/1.70
-stop loss on WFR @ 14.95

Chart of WFR:


X $43.85 -0.27 United States Steel Corp.

The steel, metal and material stocks all showed relative strength last week. X delivered a nice bounce but shares are nearing what could be tough resistance at $45.00 with its 50-dma, 30-dma, and exponential 200-dma directly overhead. I wouldn't be surprised to see shares pull back first before pushing higher. Our stop loss is at $37.40. Our long-term target is the $60-70 zone.

Oct 3rd, 2009 - entry price on X @ 41.00, option @ 3.35
symbol: FBJ-AI, 2010 JAN $45 LEAP call - current bid/ask $4.30/4.50
-stop loss on X @ 37.40

Chart of X:


XIDE $7.64 -0.03 Exide Technologies

Traders need to be careful here. The bounce in XIDE failed to break the three-week trendline of lower highs. That's a concern and might portend another test of the $7.00 level and its 50-dma. I hesitate to launch new positions until we see another strong bounce from $7.00 or a close over $8.00. Readers will want to consider a tighter stop loss if you open new positions above $8.00.

Our long-term target is $12.00.

Sep 2nd, 2009 - entry price on XIDE @ 6.50, option @ 1.25
symbol: FRU-CU, 2010 MAR $7.5 call - current bid/ask $1.45/1.70
-stop loss on XIDE @ 4.85

-or-

Buy the stock @ 6.50, stop loss at $4.85

Chart of XIDE: