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New Plays
Long Plays
Short Plays
None CSX
  NTLI
  WGII

New Long Plays

None today.
 

New Short Plays

CSX Corp. - CSX - close: 30.55 change: -0.75 stop: 31.26

Company Description:
CSX Corporation, based in Jacksonville, Fla., is one of the leading transportation companies, providing rail, intermodal and rail-to-truck transload services. The company's transportation network spans 21,000 miles, with service to 23 eastern states and the District of Columbia, and connects to more than 70 ocean, river and lake ports. (source: company press release or website)

Why We Like It:
In spite of plunging oil prices the Dow Jones transportation sector has been unable to breakout over resistance in the 4475-45.00 region and its 200-dma. Today the transport index lost 1.5% and broke down under its 50-dma. The Dow Jones railroad index produced a similar decline and breakdown. Shares of CSX followed with a 2.3% loss and its own slide under the 50-dma. Several railroad stocks, including CSX, had produced a pretty impressive bullish breakout just two weeks ago but that rally has reversed and shares of CSX look poised to begin a new leg lower. We want to see a breakdown under round-number support at $30.00 and its 200-dma before initiating positions. Thus we're suggesting a trigger to open bearish plays at $29.75. If triggered our target is the $27.00-26.00 range. We do not want to hold over the mid October earnings report so that gives us about four weeks.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/17/06 (confirmed)
Average Daily Volume: 4.5 million

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NTL Inc. - NTLI - close: 25.01 chg: -0.23 stop: 26.05

Company Description:
On 4 March 2006 NTL Incorporated completed a merger with Telewest Global, Inc., creating the UK's largest provider of residential broadband and the UK's leading provider of triple play services. The company recently completed its acquisition of Virgin Mobile. NTL offers a wide range of communications and entertainment services to more than 5 million residential customers. ntl:Telewest networks can service more than 12 million homes - 50% of UK households. (source: company press release or website)

Why We Like It:
Several days ago NTLI broke down from a narrow five-week trading range. The recent bounce has failed at old support/new resistance near $26.00. This looks like a relatively low risk entry point to short the stock. We're going to stock our stop loss just above resistance (26.05) and we'll aim for a decline toward support in the $21.00-20.00 range. More conservative traders may want to exit near $23.00 (see chart). We do not want to hold over the early November earnings report.

Picked on September 21 at $25.01
Change since picked: + 0.00
Earnings Date 11/03/06 (unconfirmed)
Average Daily Volume: 2.5 million

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Washington Group Intl. - WGII - cls: 55.98 chg: -0.72 stop: 57.25

Company Description:
Washington Group International provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. (source: company press release or website)

Why We Like It:
The rally from WGII's June lows has run into trouble with resistance near $60.00. The stock has struggled with resistance in the $60 region since it first climbed to this level back in January 2006. Now the momentum indicators are suggesting that WGII has run out of gas and the next move will be lower. The stock has already broken its 3 1/2 month trendline of support and its 50-dma so more aggressive traders may want to open positions right now. We are suggesting that readers wait for a breakdown under its 200-dma. Therefore we're using a trigger at $55.45. You may want to wait for a decline under $55.00. Our target is the $51.00-50.00 range. We do not want to hold over the November earnings report.

Picked on September xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/06/06 (unconfirmed)
Average Daily Volume: 242 thousand
 

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