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New Plays
Long Plays
Short Plays
HK STI

New Long Plays

Petrohawk Energy - HK - close: 29.52 chg: +1.80 stop: 27.49

Company Description:
Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in North Louisiana, Arkansas, East Texas, Oklahoma and the Permian basin. (source: company press release or website)

Why We Like It:
It looks like some of the natural gas stocks might be finding a bottom soon. We're going to slowly add some exposure to the natural gas sector. We're starting with HK. The daily chart's MACD indicator has finally produced a new buy signal. The stock is very oversold and due for a bounce. There appears to be some resistance around the $30.00 level so we're suggesting readers use a trigger to buy HK at $30.55. If triggered we're going to use a wide stop loss at $27.49 since shares have been so volatile lately. Our first target is $34.85. Our second target is $38.50. We strongly suggest readers take some money off the table at our first target.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 10.3 million
 

New Short Plays

SunTrust Banks - STI - close: 39.24 chg: -2.32 stop: 41.55

Company Description:
SunTrust Banks, Inc., headquartered in Atlanta, is one of the nation's largest banking organizations, serving a broad range of consumer, commercial, corporate and institutional clients. (source: company press release or website)

Why We Like It:
We think there is more pain ahead for the financials. STI looks like a decent candidate for bearish plays. However, the selling stalled near $38.50 and its simple 50-dma today. We're suggesting readers use a trigger at $38.45 to open positions. An alternative entry point you might want to consider is a failed rally under the 10-dma near $42.50. If you choose the latter entry point you'll have to adjust your stop loss. Our stop will be at $41.55. If triggered at $38.45 our target is $32.50. We are considering a more aggressive target closer to $30 but for the moment our only target is $32.50. FYI: The Point & Figure chart is bearish with a $30 target.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume: 10.4 million
 

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