NEW BULLISH Plays

Intrepid Potash, Inc. - IPI - close 22.48 change -0.74 stop 20.90

Company Description:
Intrepid Potash, Inc. is a domestic producer of muriate of potash. It is also engaged in the production and marketing of potash and langbeinite. The Company markets the langbeinite under the name of Trio. As of December 31, 2009, the Company owned five active potash production facilities, including three in New Mexico and two in Utah. During 2009, the Company produced approximately 504,000 tons of potash.

Target(s): 22.85, 23.20, 23.80
Key Support/Resistance Areas: 23.25, 22.00, 21,00
Time Frame: 1 to 2 weeks

Why We Like It:
Ag stocks are gaining momentum and I like IPI on any further weakness. IPI has longer term support/resistance at $22.00 and $21.00. The stock broke below those areas during the weakness in the early July but has since rebounded and broken out of the resistance on strong volume. The stock retreated from its 50-day SMA on Friday on significantly lighter volume. I'm looking for a little more pullback and suggest readers initiate long positions if IPI trades down to $21.80. Our stop will be $20.90 which is below the 20-day SMA and the important $21.00 support level.

Suggested Position: Long IPI stock if it trades to $21.80

Suggested Position: Buy August $22.00 CALLS, current ask $1.60, estimated ask at entry $1.25

Annotated Chart:

Entry on July xx
Earnings Date 8/4/10 (unconfirmed)
Average Daily Volume: 1.0 million
Listed on 7/17/10


NEW BEARISH Plays

Kilroy Realty Corp - KRC - close 29.63 change -1.06 stop 31.30

Company Description:
Kilroy Realty Corporation is a real estate investment trust (REIT), which owns, operates, develops and acquires Class A suburban office and industrial real estate in submarkets in Southern California. As of December 31, 2009, the Company's portfolio of operating properties consisted of 93 office buildings (the Office Properties) and 41 industrial buildings (the Industrial Properties), which encompassed an aggregate of approximately 8.7 million and 3.7 million rentable square feet, respectively.

Target(s): 29.10, 28.55, 27.90
Key Support/Resistance Areas: 31.00, 29.00, 28.30, 27.80
Time Frame: 1 to 2 weeks

Why We Like It:
KRC broke down hard from testing its 20-day and 200-day SMA's from below. The stock has been trading in a downward channel for the past three months and appears to be making a lower high. I suggest readers initiate short positions at $29.85 and use a stop of $31.30 which is above last week's highs. I view this trade as potentially being quick and have listed 3 near term targets that can be used as a guide to exit positions or to tighten stops to protect profits. $29.10 is the near term target which is just above the June 8 low. This level might be viewed by some as an inverse head and shoulders so it should be paid attention to when managing stops. However, if the broader market is weak it shouldn't act as too much support and KRC should trade down to $28.55 relatively easy.

Suggested Position: Short KRC stock if it trades to $29.85.

Options Traders: August $30.00 PUTS, current ask $1.90 estimated ask at entry $1.70

Annotated chart:

Entry on July xx
Earnings 8/2/10 (unconfirmed)
Average Daily Volume: 731,000
Listed on July 17, 2010