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New Plays
Long Plays
Short Plays
None EXP
  FMC
  STLD

New Long Plays

None today.
 

New Short Plays

Eagle Materials - EXP - close: 36.18 chg: -1.69 stop: 39.26

Company Description:
Eagle Materials Inc. is a Dallas-based company that manufactures and distributes Cement, Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates. (source: company press release or website)

Why We Like It:
The meteoric rise of EXP has come to a dramatic and painful end. Shares have been cut in half in the last three months. If investors are now turning their focus and worry to a slow down in the economy (and homebuilding) then EXP could see renewed selling pressure. Furthermore the stock is still trading in a bearish trend of lower highs and lower lows. The stock's Point & Figure chart has broken significant support and points to a $26.00 target. The recent failed rally near $39 looks like a new entry point for short positions. We're suggesting readers open positions with EXP under $38.00. Our target is the $31.00-30.00 range. Be prepared for an oversold bounce near $35.00.

Picked on August 08 at $36.18
Change since picked: + 0.00
Earnings Date 07/24/06 (confirmed)
Average Daily Volume: 1.7 million

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FMC Corp. - FMC - close: 57.20 chg: -1.37 stop: 60.78

Company Description:
FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. The company employs approximately 5,000 people throughout the world and operates its businesses in three segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals. (source: company press release or website)

Why We Like It:
The upward momentum in FMC began to stall a few months ago. The stock has spent the last several weeks consolidating sideways and that trend began to turn bearish in July with a new pattern of lower highs. On August 2nd the share price gapped down and broke significant support at $60.00, and its 200-dma and 200-ema as investors reacted to the company's earnings report. FMC had missed estimates and guided lower. There was an oversold bounce back to "fill the gap" and now FMC is sliding lower again. Volume on today's decline was well above the average. Meanwhile the P&F chart is bearish and points to a $46 target. We are suggesting short positions with FMC under $59.00. Our target is the $52.00-51.75 range since the $51.75 area was support last winter.

Picked on August 08 at $57.20
Change since picked: + 0.00
Earnings Date 10/31/06 (unconfirmed)
Average Daily Volume: 298 thousand

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Steel Dynamics - STLD - close: 54.65 chg: -1.15 stop: 56.51

Company Description:
Steel Dynamics, Inc. is a mini-mill producer of steel products, including flat-rolled steel, structural steel, special-bar-quality steel and rails. In addition, the company's New Millennium Building Systems subsidiary produces joists, girders, and decking for non-residential buildings. In 2005 Steel Dynamics posted record sales of $2.2 billion and record net shipments of 3.6 million tons. (source: company press release or website)

Why We Like It:
A number of the steel stocks are looking weak and if investors are worried about an economic slow down then these stocks could get a lot weaker. Shares of STLD are already trading in a bearish pattern of lower highs as it consolidates against support at the $54.00 level. The P&F chart is bearish and points to $42 target and a decline under $54.00 would produce a new triple-bottom breakdown sell signal. We are suggesting a trigger to short STLD at $53.95. This way we can wait for STLD to break support at $54.00 first. If triggered our target is the $50.00-49.00 range. The stock will probably find support at its rising 200-dma, currently near 48.41. Plus, the June low is at $48.67.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/19/06 (unconfirmed)
Average Daily Volume: 1.6 million
 

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