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New Plays
Long Plays
Short Plays
MZZ NYX
  XLF

New Long Plays

UltraShort Midcap - MZZ - close: 57.94 chg: +1.94 stop: 55.65

Company Description:
The UltraShort MidCap400 ProShares (MZZ) is an exchange traded fund (ETF) that moves twice the inverse of the daily performance in the S&P MidCap 400 index.

Why We Like It:
The MZZ is a bullish candidate on our newsletter but it's a bearish bet on the market. This ETF will move twice (the inverse) as far the S&P MidCap 400 index. If the MidCap index drops 2% then the MZZ will gain 4%. Today's move in the MZZ is bullish. Shares came very close to breaking out over technical resistance at the 200-dma. This "stock" looks like it has already broken the trendline of lower highs. More aggressive traders may want to jump in right now. We want to see a little more confirmation since the market has been so trendless lately. Our suggested entry point to buy the MZZ is $58.75. If triggered we're suggesting a stop loss under the 8/22/08 low of $55.71. Our target is the $64.50 mark.

FYI: This might be considered an aggressive play since the MZZ is going to be twice as volatile as the Midcap index.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 704 thousand
 

New Short Plays

NYSE Euronext - NYX - cls: 39.41 chg: -1.73 stop: 41.51

Company Description:
NYSE Euronext (NYX) operates the worlds leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. (source: company press release or website)

Why We Like It:
The path of least resistance appears to be down for the NYX. The recent oversold bounce failed at its trendline of lower highs. We're going to try and minimize our risk with a relatively tight stop but that also raises our risk of being stopped out on an intraday spike. The Point & Figure chart is bearish with a $32 target. We are setting two targets. Our first target is $35.50. The $35.00 level might be round-number support. Our second target is $31.00. FYI: The most recent data listed short interest at 6% of the 257 million-share float. That's about three days worth of short interest.

Picked on August 25 at $39.41
Change since picked: + 0.00
Earnings Date 11/03/08 (unconfirmed)
Average Daily Volume: 5.0 million

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Financial Sector SPDR - XLF - cls: 20.01 chg: -0.73 stop: 20.75

Why We Like It:
We just recently removed the XLF as a bearish play from the Premier newsletter because shares were rebounding. Now it looks like the bounce has failed. We're re-adding it to the newsletter with a trigger for shorts at $19.49, which would be a new four-week low. More aggressive traders may want to jump in now. If we are triggered at $19.49 we are suggesting a stop loss at $20.75. Our target is the $17.00 mark. The July 2008 low was $16.77.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 201 million
 

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