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New Plays
Long Plays
Short Plays
FXI None
KOL  
UNG  

New Long Plays

iShares China 25 index - FXI - cls: 46.62 chg: +1.09 stop: 44.99

Company Description:
The FXI is the iShares for the FTSE/Xinhua China 25 index. This is an exchange traded fund (ETF) that mimics the performance in the FTSE/Xinhau China 25 index.

Why We Like It:
The summer Olympic games will begin in China in less than two weeks and hype over China could pick up again. This country-specific ETF has rallied well off its July lows. The recent two-day bounce looks like a tempting entry point to initiate long positions. However, the FXI has overhead resistance at a three-month trendline of lower highs (see chart). We want to see a breakout of that trendline and resistance at its 100-dma. Thus we're suggesting readers buy the FXI at $47.65. If triggered our target is the 52.00 level or the 200-dma (currently $52.24) or whichever the FXI hits first.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 19.9 million

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Market Vectors Coal - KOL - cls: 51.60 chg: +3.27 stop: 47.95

Company Description:
The Market Vectors Coal ETF (KOL) is an exchange traded fund (ETF) that mimics the Stowe Coal index.

Why We Like It:
The coal sector is rebounding sharply but many of the individual names are almost too volatile to play. We want to participate in the group's strength but don't want the individual risk so we're suggesting the KOL. Instead of buying today's breakout over $50.00 we're suggesting readers wait for a dip into the $50.10-49.50 zone. If triggered we have two targets. Our first target is $54.75. Our second target is $58.50.

Picked on July xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 794 thousand

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United States Nat.Gas - UNG - cls: 43.39 chg: +0.86 stop: 40.99

Company Description:
The United States Natural Gas (UNG) is an exchange traded fund (ETF) that mimics the performance of near month natural gas futures traded on the NYMEX.

Why We Like It:
Wednesday was a big volume day for the UNG. This ETF on natural gas produced a bullish engulfing candlestick pattern at the bottom of its sell-off. This is usually seen as a one-day bullish reversal pattern. More conservative traders may want to wait and see where the UNG closes tomorrow before initiating positions since such patterns usually need some confirmation. We're suggesting aggressive, higher-risk bullish positions now. The big volume day and the bounce higher definitely looks like a potential bottom. However, I want to warn readers that trying to pick a bottom in the commodities lately has been pretty hazardous. We'll play with a stop loss at $40.99, just under today's low, but you may want to use a tighter stop. Our target is the $48.40-50.00 zone.

Picked on July 30 at $43.39
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 2.9 million
 

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