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New Short Plays

Allstate - ALL - close: 61.36 chg: -0.24 stop: 62.11

Company Description:
Now celebrating the 75th anniversary of the founding of Allstate Insurance Company, The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate" slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,100 exclusive agencies and financial professionals in the U.S. and Canada. (source: company press release or website)

Why We Like It:
The IUX insurance sector index has produced a bearish reversal in the last few days. This reversal follows a big move from its August lows. Shares of ALL have a similar pattern although ALL looks a bit more bearish with a second, lower high just prior to its earnings report. Now ALL looks poised to breakdown under support at the $61.00 level. We're suggesting a trigger to short the stock at $60.95 to catch a breakdown from its $61-62 trading range. More conservative traders may want to wait for a breakdown under the rising 50-dma currently near $60.80. We'll set the stop loss just above the top of the trading range. Our target is support near $58.00 in the $58.15-58.00 range.

Picked on November xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/18/06 (confirmed)
Average Daily Volume: 2.4 million
 

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