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New Plays
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COP None
DDM  

New Long Plays

ConocoPhillips - COP - cls: 72.28 chg: +3.56 stop: 67.39

Company Description:
ConocoPhillips is an international, integrated energy company with interests around the world. (source: company press release or website)

Why We Like It:
COP, one of the largest oil companies, is bouncing from a test of support near its January 2008 lows. We suspect that crude oil and the oil stocks are poised to bounce after a very painful two-month sell-off. We're suggesting readers buy COP here with a stop loss under today's low. If that stop is too aggressive for you then consider a tighter one but at a minimum be ready for a 50% retracement of today's rebound. Our target is the $78.50-80.00 zone. More aggressive traders could aim for the 200-dma or the $85.00 region.

Picked on September 16 at $72.28
Change since picked: + 0.00
Earnings Date 10/22/08 (unconfirmed)
Average Daily Volume: 12.7 million

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Ultra Dow30 ProShares - DDM - cls: 57.29 chg: +1.05 stop: 53.85

Company Description:
The Ultra (long) Dow 30 ProShares (DDM) is an exchange traded fund (ETF) that delivers twice the daily performance of the Dow Jones Industrial Average.

Why We Like It:
It looks like the market might be poised for a big bounce. Not only is the DJIA rebounding from a low near its July dip but the VIX is also testing levels well above the 30.00 region. Plus, there are many that believe that Dow-component AIG is just too big to let fail and that somehow the company will be saved. If AIG is saved from bankruptcy the stock could lead a huge rebound for the Dow. That's why we're listing the DDM as a bullish candidate since it will move twice the daily performance of the DJIA. We're suggesting a stop loss under today's low but more conservative traders may want to use a tighter stop. Our short-term target is $61.45. We're setting a secondary target at $64.50.

FYI: Traders need to follow the headlines tomorrow morning. If it looks like AIG will not be rescued then we would NOT open bullish positions on DDM.

Picked on September 16 at $57.29
Change since picked: + 0.00
Earnings Date 00/00/00
Average Daily Volume: 3.2 million
 

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