NEW BULLISH Plays

Ultra Oil & Gas ETF - DIG - close: 40.00 change: -0.93

Stop Loss: 37.65
Target(s): 44.50, 49.50
Current Gain/Loss: +0.0%
Time Frame: 2 to 6 weeks
New Positions: see below

Company Description

Why We Like It:
DIG has been an active bullish candidate on the newsletter. Yet the market's vicious drop on Tuesday morning was enough to stop us out. Shares of DIG managed to find support near the bottom of its range. The big intraday bounce looks like another entry point.

I am suggesting small bullish positions now with a stop loss at $37.65 but only if DIG and the S&P 500 index both open positive tomorrow morning. Our targets are $44.50 and $49.50.

Remember, the plan was to keep our position size small.

open positions if DIG and S&P500 open positive tomorrow

Suggested Position: buy DIG @ the open

09/06 prior trade stopped out. Reload with a new entry point.

chart:

Entry on September xx at $--.--
Earnings Date --/--/--
Average Daily Volume = 1.4 million
Listed on September 6, 2011


Steel ETF - SLX - close: 51.77 change: -1.19

Stop Loss: 49.49
Target(s): 55.90, 59.50
Current Gain/Loss: + 0.0%
Time Frame: 2 to 6 weeks
New Positions: see below

Company Description

Why We Like It:

Our strategy here is the same as on the DIG.

SLX has been an active bullish candidate on the newsletter. Yet the market's vicious drop on Tuesday morning was enough to stop us out. Shares of SLX managed to find support near the bottom of its range. The big intraday bounce looks like another entry point.

I am suggesting small bullish positions now with a stop loss at $49.49 but only if SLX and the S&P 500 index both open positive tomorrow morning. Cautious traders may want to use a stop loss just under today's low (50.28) instead. Our targets are $55.90 and $59.50.

The plan was to keep our position size small to limit our risk.

CAUTION: The October options have wide spreads!

Suggested Position: buy this ETF @ the open

- or -

buy the OCT $55 call (SLX1122J55) current ask $2.00

09/06 prior trade stopped out. Reload with a new entry point.

chart:

Entry on September xx at $--.--
Earnings Date --/--/--
Average Daily Volume = 126 thousand
Listed on September 6, 2011