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New Plays
Long Plays
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None GLW
  MER

New Long Plays

None today.
 

New Short Plays

Corning Inc. - GLW - close: 19.81 change: -0.57 stop: 20.65

Company Description:
Corning Incorporated is the world leader in specialty glass and ceramics. Drawing on more than 150 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. (source: company press release or website)

Why We Like It:
After nearly a month of churning sideways it looks like GLW is set to breakdown and launch into a new leg lower. We're suggesting bearish positions here with a stop loss at $20.65. Given the market's recent volatility that stop may be too tight. Plus, stocks have been whipsawing back and forth quite a bit lately so readers may wan to wait for a little more confirmation before jumping in. We have two targets. Our first target is $18.25. Our second target is $17.50. The Point & Figure chart is bearish with a $10 target.

Picked on August 07 at $19.81
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 17.3 million

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Merrill Lynch - MER - close: 26.10 change: -2.40 stop: 28.55

Company Description:
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 40 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. (source: company press release or website)

Why We Like It:
The financials look vulnerable again. The two-week bounce in MER is running out of steam. We're suggesting bearish positions. This should be considered a very high-risk play since the sector has been so volatile lately. We're listing a stop loss above Wednesday's high. Readers might want to consider an alternative entry point for shorts under $25.00 but use a tighter stop. We have two targets. Our first target is $22.50. Our second target is $20.25. The Point & Figure chart is bearish with a $7.00 target. FYI: After the closing bell tonight MER announced that they would follow Citigroup and offer to buy back any auction rate securities they had sold to their retail clients. We did not see any significant after hours move in the stock price.

Note: If you don't like shorting MER consider bearish plays somewhere else in the financials!

Picked on August 07 at $26.10
Change since picked: + 0.00
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 42.2 million
 

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