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New Plays
Long Plays
Short Plays
EXH CINF
TIE XLF

New Long Plays

Exterran Holdings - EXH - close: 49.40 change: +1.20 stop: 48.75

Company Description:
Exterran Holdings, Inc. is a global market leader in full service natural gas compression and a premier provider of operations, maintenance, service and equipment for oil and gas production, processing and transportation applications. Exterran Holdings serves customers across the energy spectrumfrom producers to transporters to processors to storage owners. Headquartered in Houston, Texas, Exterran and its over 10,000 employees have operations in more than 30 countries. (source: company press release or website)

Why We Like It:
EXH experienced a punishing sell-off in July and August but has spent the last three weeks consolidating sideways. Shares are very oversold and due for a correction higher. Short-term resistance is at $50.00. If the natural gas stocks continue to rally then EXH should breakout. The MACD on the daily chart has already turned positive. We're suggesting readers buy EXH at $50.25. If triggered our target is the $54.00-55.00 zone. More aggressive traders may want to aim higher. There isn't any clear resistance until the $60 region. FYI: The latest data listed short interest at 8% of the 33 million-share float.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/27/08 (unconfirmed)
Average Daily Volume: 1.2 million

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Titanium Metals - TIE - cls: 12.47 change: +0.53 stop: 11.35

Company Description:
TIMET, headquartered in Dallas, Texas, is a leading worldwide producer of titanium metal products. (source: company press release or website)

Why We Like It:
The twelve-month trend in TIE is certainly bearish but short-term the stock is breaking out from a six-week consolidation pattern. Today's rally pushed through resistance near $12.00 and its simple 50-dma. We are suggesting readers buy the breakout or wait for a dip back to the $12.00 region. We are aiming for $14.50 but more conservative traders may want to exit at the descending 100-dma.

Picked on August 21 at $12.47
Change since picked: + 0.00
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume: 3.4 million
 

New Short Plays

Cinci. Fincl. Corp. - CINF - cls: 27.37 change: -0.23 stop: 28.05

Company Description:
Cincinnati Financial Corporation offers property and casualty insurance, our main business, through our three standard market companies, The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. (source: company press release or website)

Why We Like It:
We are going to try a bearish position on CINF again. The bounce has stalled and shares have been trading sideways in the $27-29 zone for weeks. Now the MACD on the daily chart has rolled over into a new sell signal. Shares of CINF are set to breakdown under the bottom of its trading range. We're suggesting shorts with a trigger at $26.85. If triggered we have two targets. Our first target is $25.05. Our second target is $23.00.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 10/29/08 (unconfirmed)
Average Daily Volume: 2.2 million

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Financial SPDR - XLF - cls: 19.98 chg: -0.37 stop: 20.51

Company Description:
The Financial Select Sector SPDR is an exchange traded fund (ETF) that covers the banking, insurance, real estate and diversified financial sectors.

Why We Like It:
The financials have been the wet blanket on this market and the XLF looks ready to plunge toward its summer lows. We want to see a new relative low before jumping on board. Our suggested entry point is $19.49. If triggered our target is $17.05. The July 2008 low was $16.77. More aggressive traders could leverage this move lower by buying September put options instead of shorting this ETF.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 202 million
 

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