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New Plays
Long Plays
Short Plays
None EXPD
  GM

Play Editor's note: This past week's failure in the major market indices does not bode well for the summer. I suspect we will see a bounce soon but it may end up being a new entry point to establish bearish positions. I haven't had the chance to read this week's market commentary so I don't know how my own hypothesis lines up with this weekend's wrap.


New Long Plays

None today.
 

New Short Plays

Expeditor's Intl. - EXPD - close: 44.27 chg: -1.41 stop: 47.51

Company Description:
Expeditors is a global logistics company headquartered in Seattle, Washington. (source: company press release or website)

Why We Like It:
Last Friday saw EXPD breakdown from a multi-week consolidation pattern and under technical support at its 200-dma. This looks like the beginning of a new leg lower. However, instead of shorting it here we want to see a bounce first. Broken support near $46.00 should be new overhead resistance. We're suggesting shorts on bounce into the $45.65-46.00 range. Our stop loss will be $47.51. If triggered we have two targets. Our first, short-term target is $42.50. Our secondary target is the $40.25 mark. The P&F chart is bearish with a $38 target. FYI: The most recent data listed short interest at 6% of the 209 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 05/08/08 (confirmed)
Average Daily Volume: 1.7 million

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General Motors - GM - close: 17.60 chg: -0.83 stop: 20.26

Company Description:
General Motors is one of the world leaders in automobile manufacturing.

Why We Like It:
GM was a big under performer in the DJIA this past week. Now the stock is testing support at its March lows. We suspect the stock will bounce only to find resistance near $20.00 again. Our plan is to short GM on a rebound into the $19.70-20.00 zone. If triggered we're setting two targets. Our first target is the $17.50 mark. Our secondary target is the $15.50 level. The P&F chart is bearish and currently forecasts an $11 target. Nimble traders could try and capture the bounce back toward $19.50 if you're quick enough. FYI: GM has a high amount of short interest and that raises the risk of a short squeeze. The most recent data listed short interest at more than 17% of the 530 million-share float.

Picked on May xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 07/31/08 (unconfirmed)
Average Daily Volume: 18.7 million
 

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