Option Investor
Newsletter

Daily Newsletter, Tuesday, 9/14/2010

Table of Contents

  1. Market Wrap
  2. New Plays
  3. In Play Updates and Reviews

Market Wrap

Dollar Drops, Gold Soars

by Jim Brown

Click here to email Jim Brown
The dollar plunged more than a full percent on Tuesday while gold soared +27 to a record high at $1,272.

Market Statistics

The dollar fell to a 15-year low versus the yen after a key election in Japan made intervention to weaken its currency less likely. Japanese Prime Minister Naoto Kan won a crucial party election over a challenger who analysts thought would be open to selling yen to weaken the currency. The dollar also hit a one month low compared to the Euro and fell below parity to the Swiss franc, which is widely used as a safe-haven currency. Switzerland's central bank is expected to raise the country's interest rate by a quarter point on Thursday. China's yuan hit a new high for the third consecutive day against the dollar as U.S. lawmakers prepare for hearings on China's foreign exchange policies on Wednesday and Thursday.

The market is also speculating that the Federal Reserve is about to announce a new mortgage backed security purchase program to combat the rise in interest rates over the last two weeks. Many analysts expect the Fed to embark on another quantitative easing program and announce it with the FOMC statement on September 21st for purchases starting in November. The delay would be to get past the election before making any new moves. Jan Hatzius, an analyst with Goldman Sachs, believes the Fed will purchase another $1 trillion in U.S. securities. Another trillion will flood the financial sector with cash and guarantee future inflation.

Dollar Index Chart

Traders got another shot of positive sentiment from today's economic reports. The Retail Sales report for August rose by +0.4% and better than expected. If you exclude auto sales that number rises to +0.6%. These gains were unexpected after several retailers and PC makers had warned that sales were slow in their respective sectors. The gains came despite a -1.1% decline in electronics and appliances and -0.5% in furniture and home furnishings. Sales were up +3.6% year over year and +4.8% excluding autos. Core retail sales, excluding building materials and autos, rose +0.7% and the fastest rate since February.

Overall sales slowed slightly year over year but grew for the second consecutive month. Analysts claim consumers have paid down debt and are positioned to increase purchases if the economy appears to be strengthening. This suggests the potential for a double dip is decreasing. The weekly chain store sales snapshot showed sales spiked +0.8% last week.

Business Inventories spiked +1.0% compared to estimates for a +0.5% gain and a +0.3% rise in the prior month. This is a lagging report covering the July period but the news is still good. Retail inventories rose by +0.7% and are up +2.3% year over year. This is the strongest gain since February 2008. Unfortunately most of the gains were in autos. Conditions in the supply chain are stable and growing. That is about the best news we could get given all the talk about a double dip recession. One negative point was a buildup of inventories at building supply stores. The post tax credit decline left them holding excess levels of inventory that they have yet to work through.

Key economic reports due out the rest of the week include Industrial Production, Philly Fed Survey and Consumer Sentiment.

Economic Calendar

Cisco made news today when John Chambers announced the company will begin paying a dividend in 2011. The tech company is sitting on a pile of cash totaling $40 billion and has never paid a dividend before. The yield will not be exciting at somewhere between 1% and 2% but it is better than nothing for a stock that recently traded under $20 after hitting $28 back in April. Cisco shares were up strongly on the news but faded as the day progressed to end with a small gain. Microsoft surged to a six week high on rumors they may also begin paying dividends.

Cisco Chart

Hewlett Packard (HPQ) rallied +2.6% on rumors they may be close to finding a new CEO and on the positive buzz generated from the ArcSight acquisition. There was also a rumor HPQ and IBM are battling each other over the potential acquisition of Radware (RDWR). HPQ is on an acquisition spree with the company stealing 3Par (PARS) from Dell over the last couple weeks. Traders appear to like the rumors they are hearing and those shorting the company after the departure of Mark Hurd were squeezed like Charmin on the spike today.

Hewlett Packard Chart

Best Buy (BBY) reported stronger than expected earnings and helped to provide a positive boost to investor sentiment early in the day. BBY reported earnings of 62-cents, a +62.2% increase. Revenue was down to $11.3 billion a decline of -2.9%. That did not seem to impact traders since BBY beat the estimates of 44-cents per share. BBY shares rose +6% on the news.

Best Buy is in the right place at the right time with no material competitors since Circuit City folded. Best Buy is now selling iPads and Kindles, cell phones and video games like Microsoft's Halo as well as normal electronics equipment. Prices for flat screen TVs are dropping like a rock because of the competition among suppliers and this is positive for Best Buy. Positioning themselves to sell the hottest items on the planet in the Kindle, iPad, Android phones and video games like Halo and Call of Duty is a guaranteed moneymaker plus they will generate additional sales from the store traffic those items will bring. I was negative on BBY last quarter when they announced marginal earnings. With the consumer spending slump bottoming out I have reversed to bullish on Best Buy's prospects.

Best Buy Chart

Goldman Sachs held a retail investor conference today and apparently the retailers attending said they were pretty happy about back-to-school retail season. Pennys CEO Mike Ellman said the back-to-school season exceeded company-wide projections. Macy's CEO, Terry Lundgren, echoed those sentiments saying the season had been "great" after several years of weak activity during this period. He singled out Madonna's Material Girl line, which he said is receiving more attention than Macy's Thanksgiving Day parade. Shares in JCP rose +1.68, KSS +1.65 and ANF +1.34.

This is another positive sentiment point for the economy. With a broad cross section of retailers all saying positive things about a period that was expected to be ugly it appears we could be setting up for a strong fourth quarter.

Steel companies were weak after Nucor (NUE) warned of a slowdown in the industry, especially in the construction sector. Nucor said it expects profits to drop in the third quarter. Nucor said steel orders started to weaken in June and had a marginal impact on Q2 sales but would weigh heavily on Q3 results. Nucor is the biggest maker of steel beams and their largest market is nonresidential construction. That part of the construction sector is not coming back for quite a while. CIBC cut their target price for Nucor to $40 from $45 and NUE closed today at $39.41. Shares in US Steel (X) were down -1.48 and Cliffs Natural Resources lost -4.37.

Shares of NUE were halted after they erroneously traded for 1-cent earlier today and triggering the circuit breakers. According to the exchange a very large order hit the CBSX and they filled what they could before sending the balance of the order out to sweep the other exchanges. Those other exchanges filled what they could automatically and then returned the balance of the unfilled order to the CBSX. With the CBSX order book already depleted the last remaining shares were filled at the only bid remaining, which was a penny. This triggered the halt and the exchanges busted the low trades. The trades all occurred within a couple of seconds. NUE traded three times the volume they traded on Monday.

Bank stocks were mixed today after the big gains on Monday. Traders were taking profits on the banks after the Basel III rally on Monday. A day after the news the smoke has cleared to some extent and traders were wading through the regulations to determine which banks would be hurt the worst and which would benefit. Banks had risen for the last two weeks in anticipation of the news. Profit taking was inevitable.

Transocean Offshore (RIG) reported it was moving a second rig out of the Gulf. The Discoverer Americas is headed to Egypt where it will rent for $486,000 per day to Statoil. Earlier this month Transocean said its Marianas rig was leaving the gulf to head for West Africa under contract to Italy's Eni. That leaves Transocean with 11 deepwater rigs in the gulf. Diamond Offshore announced in July they were transferring a rig to Egypt and canceling a contract with Devon. Transocean also said they were taking two shallow water rigs out of service due to lack of demand. One of the rigs had been under contract for $90,000 and the other $150,000 per day. That raises the total number of jackup rigs out of service to 29 out of 65 jackups owned by Transocean.

Earlier this morning the Interior Department said it was unlikely to extend its six-month moratorium on drilling in the gulf. Michael Bromwich, head of the new Bureau of Ocean Energy Management, said he was impressed with the progress the industry had made on spill response and containment since the ban was imposed. Bromwich said, "I think it is highly unlikely the moratorium will be extended beyond November 30th." He said a report offering recommendations on possibly lifting the moratorium early would be completed by the end of September. He said it might take Ken Salazar a few days to a couple weeks to act on the report. Personally I believe the administration will drop the ban 2-3 weeks before the election in hopes of gaining back some of the votes they lost on the ill-advised ban.

The Dow traded on both sides of zero several times today but gave up 50 points to a sell program in the last 20 minutes to end the day with a -17 point loss. Considering the gains over the last two weeks I consider this a perfectly acceptable loss. The Dow has been up eight of the last ten days with a range of +650 points from the August 31st low through today's high. To give back 17 points is a pinprick. The Nasdaq added another day of gains and the Nasdaq 100 continued setting new three-month highs. All this September euphoria could stop at any time but sentiment is definitely improving. The key test will be how quickly the next dip is bought.

The morning dip today to initial support at 10,500 was bought instantly but it was not much of a dip. We need a real dip to accurately determine how much staying power the bulls have as this rally starts to grow old.

The S&P-500 is up +7% for the month of September and edging closer to critical resistance at 1130. The 50% retracement level of the March 2009 lows is 1121 and that functioned as support this afternoon. This would be a good spot to launch an assault on 1130 but I don't know what the bulls are going to use as a catalyst. There are no economic reports tomorrow that normally generate that kind of momentum. There is more risk of negative economic surprises than positive ones this week.

The S&P is overbought but there appears to be no concentrated effort to sell it off. The 80-cent decline today was neutral but given its +7% gain for the month I still think it was a bullish performance. The real test will be 1130. That could be a tough barrier to cross.

S&P-500 Chart

The Dow stalled at downtrend resistance at 10,525 but there was a valiant effort to move over that level intraday. I believe the minor loss on the closing sell program was a victory for the bulls. Support should be 10,500 and the 200-day average at 10,452. If the Dow can move over the downtrend resistance the real battle will be at 10,700 and the August highs. I would expect a major stalemate at that level.

Dow Chart

The Nasdaq Composite is lagging the Nasdaq-100 by a few points and a resistance line. The Composite has a significant resistance hurdle at 2300 and it was solidly rebuffed at that level today. The corresponding level on the NDX was 1900 and the NDX is already well over that level. The big caps are definitely leading the charge. The Semiconductor sector has gone from zero to hero in the last week and propelled the techs higher. The SOX has rallied +6.4% from its lows in only three days.

The real battle here is going to be the 2300 level on the composite. That is the make or break level that will determine the success or failure of the rally for the week. Support is well back at 2225 so any retreat could be painful.

Nasdaq Composite Chart

Nasdaq-100 Chart

Semiconductor Chart

In summary the market is tired but refusing to give up. The bad news bulls may have some disappointing economics to climb over this week. The potential for negative news outweighs the potential for positive news. However, recent reports have been surprising to the upside even if it is just slightly. I would continue to buy the dips until proven wrong. There is still a lot of pessimism over the September rally and that should keep the shorts in play.

Despite the Dow loss today there were far more new highs (353) than new lows (50) and volume did pickup at 7.1 billion shares. Everyone is still not committed to the rally but individual stocks are starting to outperform and funds will eventually have to chase performance ahead of the quarter end, which is only two weeks away.

Jim Brown


New Plays

A Retracement Is Looming

by Scott Hawes

Click here to email Scott Hawes

Freeport-McMoRan - FCX - close 81.44 change -0.33 stop 84.55

Company Description:
Freeport-McMoRan Copper & Gold Inc. (FCX), through its wholly owned subsidiary, Phelps Dodge Corporation (Phelps Dodge) is a copper, gold and molybdenum mining company. Its portfolio of assets includes the Grasberg minerals district in Indonesia, which contains the single recoverable copper reserve and the single gold reserve; mining operations in North and South America, and the Tenke Fungurume minerals district in the Democratic Republic of Congo (DRC). FCX also operates Atlantic Copper, its wholly owned copper smelting and refining unit in Spain.

Target(s): 78.00, 76.80, 75.75
Key Support/Resistance Areas: 84.25, 76.50, 75.00
Time Frame: 1 week

Why We Like It:
FCX has gained nearly +20% since its low on 8/25 less than 3 weeks ago. The stock has surged higher, virtually in a straight line with little to no pause. FCX has rallied right into its primary downtrend line from its January highs and also closed at a prior resistance level from mid-March. This type of move is not sustainable and I suggest readers open short positions at current levels and play for a retracement of the stock's recent gains. Our primary target is $76.80 which is about -5.5% lower than current levels, and also just above a 38.2% retracement from the 8/25 lows to today's highs. For options traders, if this target is reached it should produce a gain of approximately +60% to +65%. This could be a quick trade and a good strategy would be to immediately place a "good til cancelled" or "one cancels the other" order immediately after the position is entered and be ready to take profits or get out should our stop get hit.

Suggested Position: Short FCX stock at current levels

Options Traders: Buy October $75.00 PUT, current ask $1.60

Annotated chart:

Entry on September xx
Earnings: 10/20/2010 (unconfirmed)
Average Daily Volume: 10 million
Listed on September 14, 2010


In Play Updates and Reviews

Two Plays Opened, Two Plays Closed

by Scott Hawes

Click here to email Scott Hawes
Current Portfolio:


BULLISH Play Updates

The Andersons, Inc - ANDE - close 37.61 change +0.15 stop 34.45

Target(s): 38.40, 38.95, 39.90, 41.50
Key Support/Resistance Areas: 41.50, 40.50, 39.20, 37.50 to 38.00, 35.50
Current Gain/Loss: +1.59%
Time Frame: 1 to 3 weeks
New Positions: Yes, on pullbacks

Comments:
9/14: We got the breakout today but it was short lived as ANDE closed only slightly positive after gaining nearly +3% in morning trading and almost hit our first target. The stock sold off the remainder of the day and printed an ugly topping tail candlestick. The good news is that today's closing price was a new 52-week high close. ANDE has solid support at current levels and below but the broader market looks ready to pullback. Readers may want to consider a tighter stop in $36.45 to $36.90 area.

9/13: ANDE closed right at $37.50 which is where the stock has struggled recently. If price keeps knocking at this level the door should open. Now we need a breakout.

Current Position: Long ANDE stock, entry was at $37.02

Options Traders: Buy December $40.00 Calls, current ask $2.10

Entry on August 19, 2010
Earnings 10/28/2010 (unconfirmed)
Average Daily Volume: 180,000
Listed on August 18, 2010


Brocade Communications - BRCD - close 5.90 change -0.07 stop 4.95

Target(s): 6.00, 6.20, 6.50
Key Support/Resistance Areas: 6.60, 6.20, 6.00, 5.75, 5.40, 5.00
Current Gain/Loss: +2.61%
Time Frame: 1 to 3 weeks
New Positions: Yes, on pullbacks

Comments:
9/14: BRCD pulled a repeat of yesterday and printed its third consecutive bottoming tail candlestick. The stock remains in a bull flag but could pullback with the broader market. I think pullbacks can be bought and will be short lived.

9/13: BRCD was under a little pressure early but the stock recovered nicely and closed near its highs of the day. The stock is just below the 200-day SMA and our first target is approaching.

9/11: BRCD traded down to $5.72 and bounced nicely on Friday. We are long the stock at $5.75. It's too bad we missed our initial trigger by 4 cents at $5.46 but I still like the set-up. I've increased the first target to $6.00.

Current Position: Long BRCD stock, entry was at $5.75

Options Traders: Long October $6 CALL

Entry on September 10, 2010
Earnings 11/23/10 (unconfirmed)
Average Daily Volume: 12.7 million
Listed on September 4, 2010


Noble Corp - NE - close 35.35 change +0.16stop 32.25

Target(s): 36.85, 38.30
Key Support/Resistance Areas: 36.95, 38.50, 33.50
Time Frame: 1 to 3 weeks

Comments:
9/13 & 9/14: We are waiting to be triggered at $34.60, which is about -2% lower from current levels. My comments from the play release below have not changed.

9/11: Fundamentally NE is a cheap stock that trades at a PE under 7. Technically, the stock broke out of a downtrend line that began on 4/27. Volume has been picking up as the stock is moving higher and it is also consolidating near its highs on lighter volume, which is a bullish sign. I suggest we use a trigger of $34.60 to open long positions. Our two targets are +6.5% and +10.5% higher. Our initial stop will be $32.25 which is below the rising 20-day and 50-day SMA's.

Suggested Position: Long NE stock if it trades to $34.60

Options Traders: Buy October $36.00 CALL, current ask $1.12, estimated ask at entry $0.85

Entry on September XX
Earnings 10/20/10 (unconfirmed)
Average Daily Volume: 3.7 million
Listed on September 11, 2010


Northern Oil & Gas - NOG - close 15.00 change -0.22 stop 14.25

Target(s): 15.95, 16.50
Key Support/Resistance Areas: 17.25, 16.20, 15.75, 15.00, 14.60
Current Gain/Loss: -0.33%
Time Frame: 1 to 3 weeks
New Positions: Yes

Comments:
9/14: We are long NOG at $15.05. There is solid support all the way down to $14.60 including an upward trend line, the 20 and 50-day moving averages and prior support/resistance levels. Pullbacks should get bought and I like new positions on any further dips. Our first target has been lowered 5 cents to $15.95 which is +6% higher than our entry. I've left the play release below.

9/8: Oil and oil stocks should do well on the slightest prospects of an economic recovery. NOG is a land based driller with major assets in the Bakken region in North Dakota, which is one of the largest discoveries of proven oil reserves ever found in the United States. NOG is forming a bull flag on its daily chart and looks poised to breakout. The stock is consolidating above all of its major moving averages which should also help to provide support on any pullbacks. I suggest readers use a trigger $15.05 to initiate long positions. Our two targets are +6% and +9% higher. Our stop is below all of the moving averages and the recent upward trend line.

Current Position: Long NOG stock, entry was at $15.05

Options Traders: Long October $15.00 CALL

Entry on September 14, 2010
Earnings 10/25/10 (unconfirmed)
Average Daily Volume: 506,000
Listed on September 8, 2010


Power-One, Inc - PWER - close 11.16 change -0.36 stop 9.68

Target(s): 11.60, 12.00, 12.50
Key Support/Resistance Areas: 13.00, 11.75, 50-day, 9.50
Time Frame: 1 to 3 weeks

Comments:
9/13 & 9/14: I suggest we remain patient and wait for our trigger at $10.80 which is just above the rising 20 and 50-day SMA's and an upward trend line. A pullback in the broader market should get us there.

9/11: Well, PWER came within 1 penny of triggering our long entry so I'm going to raise the trigger to $10.80. Either someone doesn't want to let us in long positions or I am good at picking intraday support levels. Maybe both but we should get filled in the next day or two. There is lots of support below that I think will hold (see below comments).

9/7: Take a look at the grey volume bars on the chart below. It is clear PWER is being accumulated with institutional money as the price has risen over the past 18 months. I like PWER's business and believe this stock will continue to get bought if the market cooperates. I suggest readers use a trigger of $10.75 to enter long positions and target a move back towards the stock's recent high. This is above the stock's upward trend line and the 50-day SMA. Our initial stop will be below both of these at $9.68.

Suggested Position: Long PWER stock if it trades to $10.80

Options Traders: Buy October $11.00 CALL, current ask $1.00

Entry on September XX
Earnings 10/21/10 (unconfirmed)
Average Daily Volume: 5.3 million
Listed on September 7, 2010


iPath S&P 500 VIX ST Futures - VXX - close 17.57 change -0.01 stop 16.60

Target(s): 19.60, 20.40
Key Support/Resistance Areas: 17.50, 19.75, 20.60
Current Gain/Loss: -0.73%
Time Frame: 1 week
New Positions: Yes

Comments:
NOTE: I view this as an aggressive trade so small position size is recommended. Long VXX is a bearish play on equities, however, it is listed as long play because we are long the underlying instrument.

9/14: We are long VXX as of today's open which is a bearish play on equities. I'm looking for a quick spike in volatility with a pullback in the broader market. There is resistance at $18.50 which could easily get hit with one big down day in the market. My comments from the play release remain valid.

9/13: The market is overbought and needs a healthy pullback to regain its energy. Traders are getting complacent and I believe there will be a spike in volatility in the coming days. VXX printed a new 52-week low today which barely undercut its 4/21 low which was just before the S&P 500 began to sell-off in earnest. This creates a potential double bottom set-up and I suggest readers initiate long positions at current levels. I also view this as a good hedge against our open long positions in the model portfolio. Our profit targets are +11% and +16% from current levels.

Suggested Position: Long VXX stock at current levels

Options Traders: Buy October $19.00 CALL, current ask $1.00

Entry on September 14, 2010
Earnings N/A (unconfirmed)
Average Daily Volume: 21 million
Listed on September 13, 2010


BEARISH Play Updates

Intuit, Inc. - INTU - close 43.90 change -0.18 stop 45.32

Target(s): 42.00, 41.40, 40.50
Key Support/Resistance Areas: 45.00, 43.25, 42.00, 41.35, 50-day SMA
Current Gain/Loss: -1.32%
Time Frame: 1 to 2 weeks
New Positions: Yes

Comments:
9/14: INTU is maintaining an intraday downtrend line and I'm expecting the stock to turn lower with the broader market. $43.25 is a key level for the stock break and head lower.

9/13: INTU closed its gap down on Friday. I'm looking for the stock to turn lower now. My comments from below have not changed.

9/11: We got a little unlucky with the gap lower in INTU on Friday but it was expected on the heels of a downgrade. Nonetheless, I'm looking for the stock to continue lower. The broader market will most likely determine how far this goes. Our first two targets are -3% and -4.5% lower from here. The play write-up is below.

9/9: UBS cut its rating on INTU from neutral to buy this afternoon, which is when the selling in the stock began in earnest. In addition, price targets from other analysts are in the $45 range which INTU printed on Tuesday. The stock also printed all-time highs on Tuesday but is showing signs of an imminent decline, especially if the broader market pulls back. Tuesday's candlestick is a reversal pattern and it was confirmed today with a bearish engulfing candlestick. I suggest readers initiate short positions at current levels and play for a pullback to our targets which are near three support/resistance levels. Our stop will be just over Tuesday's high. Our targets are -4.5% to -8% below current levels. I also think this is a good play to consider options which creates defined risk. For example, buying 4 contracts of the October $42.50 strike for 90 cents (mid point of the current bid/ask spread) will cost you $360.00. Should INTU stock move -$1.50 lower over the next 1 to 2 weeks those options should be worth about $1.40. This would represent a +55% gain (or a $200 return on your $360 at risk). I bring this up due to all of the M&A activity and I would rather see readers protect against a large gap if INTU happens to be a takeover target, although I haven't heard anything to substantiate this. Simply put, the stock looks ready for a pullback. Please email me with any questions.

Current Position: Short INTU stock, entry was at $43.33

Option Traders: Long October $42.50 PUTS

Entry on September, 10, 2010
Earnings: 11/18/2010 (unconfirmed)
Average Daily Volume: 4 million
Listed on September 9, 2010


CLOSED BULLISH PLAYS

Coeur d'Alene Mines - CDE - close 18.47 change +0.73 stop 16.45

Target(s): 18.40 (hit), 18.95 (hit), 19.95
Key Support/Resistance Areas: 20.00, 19.00, 17.80, 16.70
Final Gain/Loss: +5.87%
Time Frame: 1 to 3 weeks
New Positions: Closed

Comments:
9/14: CDE broke out higher today and reached our first two targets. In last night's updates I suggested taking profits if we broke out higher prior to a pullback. As such, we have closed the position for a +5.8% gain. 9/13: CDE remains in a bull flag on its daily chart. If this breaks out higher prior to a pullback I suggest readers take profits or tighten stops to protect them.

9/11: I've tightened the stop to $16.45 and adjusted the first target down 5 cents. My comments from below remain the same.

9/9: I am looking for the stock to move up towards its May highs but if the broader market doesn't follow through we may get a pullback first. Readers may want to use a tighter stop in the $16.40 area.

Closed Position: Long CDE stock at $18.95, entry was at $17.90

Annotated chart:

Entry on September 7, 2010
Earnings 11/4/10 (unconfirmed)
Average Daily Volume: 2.0 million
Listed on September 1, 2010



CLOSED BEARISH PLAYS

Ultrashort MSCI Europe - EPV - close 17.95 change -0.73 stop 17.78

Target(s): 19.40 (hit), 19.75, 20.20
Key Support/Resistance Areas: 18.00, 19.40, 20.25, 20.60
Current Gain/Loss: -5.93%
Time Frame: 1 week
New Positions: Closed

Comments:
NOTE: This is an double inverse ETF and a bearish play on European equities. Expect volatility and use small position size to manage risk.

9/14: We were taken out of EPV this morning when the broader market bounced off of its lows so we are flat the position for a loss. In hindsight we were a little too early with this play but we have to honor our stops. Readers who may still have positions I would probably stick with it and target a move up to the $19.50 to $20.00 area.

9/13: We are very close to getting stopped out of EPV. Any strength in European equities tomorrow will most likely take us out. If EPV gaps open near our stop tomorrow I suggest readers place a new stop below the first 15 or 30 minute opening range. This will allow you to measure the true weakness in the stock and often times keeps you in the position looking for a better exit.

9/11: EPV is good hedge against our long positions right now. If global equities turn lower our targets should get hit relatively quick. New positions can be considered now.

Closed Position: Long EPV stock at $17.78, entry was at $18.90

Annotated chart:

Entry on September, 3, 2010
Earnings N/A
Average Daily Volume: 259,000
Listed on August 31, 2010