Option Investor
Newsletter

Daily Newsletter, Monday, 7/11/2011

Table of Contents

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

Market Wrap

Not Safe To Tread In Europe's Waters

by Todd Shriber

Click here to email Todd Shriber
Apparently the last few trading days of June and the first few days of July were nothing more than a front that now, with the benefit of hindsight, was easy to see through regarding Europe's sovereign debt woes as fresh concerns on this seemingly never-ending issue plagued stocks today, sending the S&P 500 to its worst two-day run in a month. The carnage was wide-spread as the Dow Jones Industrial Average slid 1.2%, the Nasdaq fell 2% and the Russell 2000 ended lower by 2.2%.

Stats Table

I have the benefit of writing the Monday wrap, which partially explains why I have been so vigilant in highlighting Europe's sovereign debt problems over the past 18 months or because the news that this issue produces tends to percolate over the weekend and then proceeds to drag riskier assets lower on Monday. So forgive me for sounding like a broken record, but as I have said many times in the past, Greece's situation alone is bad. Portugal's tribulations are moderately worse, but fears regarding a spreading contagion to the likes of Italy and Spain are another ball of wax altogether.

As ranked by the International Monetary Fund, Italy and Spain had the eleventh- and thirteenth-largest economies in the world last year, respectively. Spain's 2010 GDP was more than quadruple that of Greece's and Italy's was more than five times that of Greece, which is just a short trip away by way of the Ionian Sea.

I am not much of a bond guy, but I will note that the spreads on Italian and Spanish government debt relative to German bunds blew out today. Yields on 10-year Italian government-issued debt hit their highest levels in a decade. In fact, yield spread on Italian 10-years and the comparable German bund jumped 47 basis points today, the biggest daily increase since 1994 to a euro-era high of 305 basis points, Reuters reported. Yields on Spanish government bonds are hovering around 6%, also a euro-era high.

As an aside and as someone who spends a lot of time analyzing and writing about ETFs, I find it very interesting that Global X, one of the up-and-coming issuers in the ETF business, filed plans last week to possible introduce Greece-and Portugal-specific ETFs along with a fund tracking Southern Europe. I have to imagine there are plenty of short-sellers at hedge funds and banks throughout the world that wish these funds had come along sooner.

Speaking of ETFs, the iShares MSCI Italy Index Fund (EWI) was hammered to the tune of 6.2% today on volume that was nearly five times the daily average. The iShares MSCI Spain Index Fund (EWP) plunged 5.2% on volume that was more than double the daily average.

Italy ETF

Spain ETF

Mergers and acquisitions news flow was pretty active today, but savagery inflicted upon riskier assets, especially in the materials sector, held back shares of Peabody Energy (BTU), the largest U.S. coal producer. Missouri-based Peabody is teaming with ArcelorMittal (MT), the world's largest steelmaker, to bid for Australia's Macarthur Coal, the world's largest maker of pulverized coal for steel producers.

Given that anecdote about Macarthur, the company makes for an attractive acquisition target in this era of soaring coal demand and prices. Peabody certainly knows this as it tried to acquire Macarthur last year on its own for $3.8 billion, but was rebuffed. Teaming with ArcelorMittal for Macarthur's affections makes sense for Peabody because the steelmaker already owns almost 14% of Macarthur. Now the two companies just have to convince major shareholders such as China's Citic Group and South Korea's Posco (PKX) that Macarthur is better off being part of a joint venture that will be 60% owned by Peabody and 40% owned by ArcelorMittal. For more news and commentary on the energy sector, register for the OilSlick.com free daily newsletter (HERE).

Peabody Chart

Speaking of materials sector M&A, Stillwater Mining (SWC), the Montana-based platinum and palladium got shellacked today, plunging $5.26, or 22.2%, to $18.46 on volume that was nearly seven times the daily average after the company announced it will acquire Canadian rival Peregrine Metals to bolster its exposure to gold and copper.

Through the acquisition, which is expected to close at the end of September, Stillwater will gain access to Peregrine's undeveloped Altar property in the San Juan province of Argentina, which has indicated resources of 7.4 billion pounds of copper and 1.5 million ounces of gold, according to Reuters. On the surface, that would appear to be good news, but it was not. JPMorgan said investors were right to send Stillwater shares to the woodshed, saying the deal brings too much of a base metals flair to a precious metals mining company.

Stillwater had put in a nice run off its June lows, but all of that good work was undone today as the stock sank below the lowest closing price seen last month.

Stillwater Chart

Dow component Alcoa (AA), the largest U.S. aluminum, kicked off the second-quarter earnings parade today after the close after sinking nearly 3% on volume that was about 75% higher than the daily average during regular trading. The Pennsylvania-based company said its profit for the quarter rose to $322 million, or 28 cents a share, from $136 million, or 13 cents, a year earlier. On an adjusted basis, Aloca earned $364 million, or 32 cents, missing the 33 cents analysts were forecasting. Revenue climbed 27% to $6.59 billion, topping the $6.31 billion analysts were expecting.

Spot aluminum prices on the London Metals Exchange rose 24% in the second quarter compared with the second quarter of 2010, helping bolster Alcoa's profits. CEO Klaus Kleinfeld reiterated his forecast for global demand to increase by 12% in 2011 and double by the end of the decade as Asian countries build more offices and buy more aircraft, cars and trains, according to Bloomberg News.

Despite a solid quarter, reiteration of previous guidance is not going to get investors excited in this environment and, as usual, I expect Alcoa to have very little impact on the Dow's fortunes tomorrow. The stock was down about half a percent in after hours trading.

Alcoa Chart

In other after hours news, International Paper (IP), a former Dow component and currently the world's largest pulp and paper producer, has taken its previously rebuffed $3.3 billion offer for packaging maker Temple-Inland (TIN) directly to the latter's shareholders, making it a hostile bid. International Paper is offering $30.60 a share for Temple-Inland, saying the offer is good starting on Tuesday and will remain valid through August 9.

Texas-based Temple-Inland said it will review the offer and make a recommendation to shareholders over the next two weeks. That is better than what International Paper has gotten thus far as the company called Temple-Inland ''unrealistic'' while noting it was left with no choice but to take its offer directly to Temple-Inland investors because the company has refused to come to the negotiating table.

Temple Inland Chart

Looking at the charts, the major indexes were able to skirt disaster following Friday's weak jobs report, but no such luck was to be had today. The S&P 500's close below 1320 took the index below several different support areas in the 1325-1340 area, though the 1340 level is probably the most firm resistance at this point. The earnings calendar is light on big names Tuesday and Wednesday, so the S&P 500 could be in a holding pattern until JPM and GOOG report on Thursday.

S&P 500 Chart

Even with today's ugliness, the Dow has still lost less than 220 points over the past two trading days compared with a gain of 800 points over the previous eight days and I think those are margins the bulls could live with. Not a single Dow constituent was higher today, helping explain why the index moved below support at 12,550. Resistance remains 12,800.

Dow Chart

The Nasdaq flirted with resistance at 2873 on Friday, but today's sell-off now has the index flirting with support at 2800. Further downside could take the Nasdaq to 2760 while 2830 is the resistance the index must now contend with before addressing 2873. Google's earnings after the bell on Thursday are the major Nasdaq catalyst for the week.

Nasdaq Chart

The Russell 2000 took peak over its 2007 high at 855.77 last week, but those gains were undone on Friday and any positivity left over from the not-so-bad end to last week was undone with Monday's 19-point loss. The index violated support at 840, but found it at 830. Material resistance is still the 2007 high.

Russell 2000 Chart

Overall, it is familiar, yet sad song that continues to plague equity markets, that being Europe. If bailouts for Italy and Spain become a reality, expect the reaction to be far worse than it was for the Greek, Irish and Portuguese bailouts. In the face of European headwinds, blowout earnings will not be enough. It is going to take some seriously bullish upward revisions to second half and 2012 earnings guidance to legitimize the recent rally and give investors, pros and retail alike, new reasons to get involved with stocks. In the absence of the earnings revision catalyst, stocks may languish for the duration of the summer.

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New Plays

Bucking the Trend

by James Brown

Click here to email James Brown


NEW BULLISH Plays

Alexion Pharma - ALXN - close: 50.37 change: +0.07

Stop Loss: 47.75
Target(s): 52.25
Current Gain/Loss: unopened
Time Frame: up to its earnings report
New Positions: Yes, see trigger

Company Description

Why We Like It:
Alexion Pharmaceuticals is a drug maker that has been outperforming the DRG drug index and BTK biotech index over the last few days. Shares even managed to close in positive territory today. Aggressive traders may want to buy the stock now. Shares do look a little short-term overbought. I am suggesting we launch positions on a dip at $49.00 with a stop loss at $47.75. If triggered our target is $52.25. However, we don't have much time. Earnings are expected on July 21st and we do not want to hold over the announcement. FYI: The Point & Figure chart for ALXN is bullish with a $63 target.

Trigger @ $49.00

Suggested Position: buy ALXN @ $49.00

- or -

buy the AUG $50 call (ALXN1120H50) current ask $2.40

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 07/21/11 (confirmed)
Average Daily Volume = 1.1 million
Listed on July 11, 2011



In Play Updates and Reviews

The Refining Play is Open

by James Brown

Click here to email James Brown

Editor's Note:
The stock market's sharp sell-off on Monday was just enough to hit our trigger for the new WNR trade. Meanwhile CPHD and NANO were stopped out.

-James

Current Portfolio:


BULLISH Play Updates

AMBEV - ABV - close: 32.07 change: -0.98

Stop Loss: 31.65
Target(s): 35.75, 37.75
Current Gain/Loss: - 3.5%
Time Frame: 6 to 9 weeks
New Positions: see below

Comments:
07/11 update: I am concerned about ABV. The drop to support near $32.00 and the 50-dma is not that surprising, especially with the market's sharp sell-off today. What concerns me is the volume. Volume has been above average for this entire three-day correction lower. This is a bearish signal. I would still be tempted to launch positions here but keep position small. I am raising our stop loss to $31.65, just a few cents under today's low.

Earlier Comments:
My biggest concern is that I can't find an earnings report date for this Brazilian company. If they report earnings and miss or disappoint while we're long the stock it could be very painful. Readers may want to keep their position size small.

Current Position: Long ABV stock @ $33.25

- or -

Long Aug. $34 call (ABV1120H34) entry @ 0.90

07/11 new stop loss @ 31.65

Entry on July 8 at $33.25
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume: 2.0 million
Listed on July 5, 2011


American Express Co. - AXP - close: 52.27 change: -0.80

Stop Loss: 50.90
Target(s): 54.95
Current Gain/Loss: unopened
Time Frame: up to its earnings report
New Positions: Yes, see trigger

Comments:
07/11 update: The profit taking in AXP was relatively mild. We are still waiting for a dip to $52.00, which is our trigger to launch bullish positions. Cautious traders could wait for a dip closer to the $51-50 area instead. Keep in mind that this trade may not get very far. We only have about seven trading days left since we do not want to hold over the earnings report. Please note the new stop loss at $50.90.

Trigger @ 52.00

Suggested Position: buy AXP stock @ 52.00

- or -

buy the Aug. $52.50 call (AXP1120H52.5)

07/11 new stop loss @ 50.90

Entry on July x at $xx.xx
Earnings Date 07/20/11 (unconfirmed)
Average Daily Volume: 7.0 million
Listed on July 2, 2011


Cheesecake Factory Inc. - CAKE - close: 33.02 change: -0.48

Stop Loss: 31.90
Target(s): 33.60, 37.00
Current Gain/Loss: + 4.7%
Time Frame: 8 to 10 weeks
New Positions: see below

Comments:
07/11 update: CAKE is also showing some resiliency. The stock only gave up -1.4%. There is still a good chance CAKE will correct toward $32.00. I am not suggesting new positions at this time. We do not want to hold over the July 20th earnings report.

Current Position: Long CAKE stock @ $31.53

- or -

July $33 call (CAKE1116G33) Entry @ $0.75, exit 0.80 (+6.6%)

07/09 new stop loss @ 31.90
07/07 Target hit @ 33.60. CAKE +6.5%, option @ $0.80 (+6.6%)
07/05 adjusted 1st target to $33.60
07/02 new stop loss @ 30.75
06/30 consider the opportunity cost of staying in CAKE. maybe you should exit early
06/28 New stop loss @ 29.65
06/09 CAKE is bouncing from the 200-dma as expected.
06/04 More conservative traders may want to exit early. We are expecting a drop to the 200-dma.

Entry on May 20 at $31.53
Earnings Date 07/20/11 (confirmed)
Average Daily Volume: 1.0 million
Listed on May 19th, 2011


Dr. Pepper Snapple - DPS - close: 41.26 change: -0.66

Stop Loss: 39.90
Target(s): 46.00
Current Gain/Loss: - 1.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: DPS gave up -1.5%. Shares are nearing support near $41 and its 30 and 50-dma. I would take advantage of today's decline and launch new bullish positions here. Conservative traders could still wait for a dip near $40.00 instead. Normally I would avoid holding over earnings but I am tempted to hold over DPS' late July earnings report. Our multi-week target is $46.00.

Current Position: Long DPS stock @ $41.71

- or -

Long Aug. $45 call (DPS1120H45) Entry @ $0.30

Entry on July 11 at $41.71
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 1.8 million
Listed on June 30, 2011


Ecolab Inc. - ECL - close: 56.00 change: -0.50

Stop Loss: 53.90
Target(s): --.--, 59.90
Current Gain/Loss: + 4.9%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: ECL held up very well today. Shares lost less than 1% and hovered near the $56.00 level most of the session. I am almost tempted to raise our stop loss closer to the $55 level. Personally I would look for a dip or a bounce near $55.00 before considering new positions.

Current Position: Long ECL stock @ 53.35

- or -

July $55 call (ECL1116G55) Entry @ $0.60, exit $1.45 (+141.6%)

07/09 new stop loss @ 53.90
07/08 planned exit. July $55 call @ $1.45 (+141.6%)
07/07 Plan on exiting our July calls tomorrow at the close
07/02 Sell half. ECL @ 56.76 (+6.3%), Option @ $1.75 (+191.6%)
06/30 new stop loss @ 53.45
06/18 new stop loss @ 52.45
06/04 new stop loss @ 51.90

Entry on May 26 at $53.35
Earnings Date 07/26/11 (unconfirmed)
Average Daily Volume: 1.5 million
Listed on May 18th, 2011


Interpublic Group - IPG - close: 12.36 change: -0.36

Stop Loss: 12.20
Target(s): 13.20
Current Gain/Loss: + 1.5%
Time Frame: 4 to 6 weeks
New Positions: see below

Comments:
07/11 update: Ouch! IPG gapped open lower and dipped to $12.32 intraday. The close under $12.50 and its 10-dma is short-term bearish. There is a pretty good chance that if stocks continue to sink tomorrow that IPG will make a run at the $12.00 level. We have a stop at $12.20.

Our plan was to keep our position size small. Our target is $13.20 near the 2011 highs. FYI: We do not want to hold over the late July earnings report.

- small positions -

Current Position: Long IPG stock @ $12.17

- or -

Long Aug $12.00 call (IPG1120H12) Entry @ $0.85

07/09 new stop loss @ 12.20
07/02 new stop loss @ 11.49

Entry on June 29 at $12.17
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume: 7.5 million
Listed on June 28, 2011


Kaiser Aluminum - KALU - close: 53.10 change: -1.28

Stop Loss: 51.90
Target(s): 59.75
Current Gain/Loss: - 0.8%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
07/11 update: The stock market's widespread sell-off on Monday was unexpected but it has a side effect. That is a better entry point on KALU. Shares opened lower at $53.56 and are now trading inside the $54-52 range. KALU now has short-term resistance at $54.00 and support near $52.00. I would take advantage of this dip and launch new positions here. We have a stop at $51.90.

Earlier Comments:
Our target is the $59.75 mark since the $60 level looks like resistance. Investors could certainly aim higher. KALU has a high amount of short interest and the stock could experience a short squeeze. We do not want to hold over the early August earnings report but the date is not yet confirmed. FYI: Investors should note that the most recent data listed short interest at 9.9% of the very small 18.5 million share float.

- Small Positions -

Current Position: Long KALU @ $53.56

- or -

Long AUG $55 call (KALU1120H55) Entry @ $1.30

Entry on July 11 at $53.56
Earnings Date 08/01/11 (unconfirmed)
Average Daily Volume = 183 thousand
Listed on July 9, 2011


KLA-Tencor - KLAC - close: 42.29 change: +0.04

Stop Loss: 39.95
Target(s): 45.75
Current Gain/Loss: - 0.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: KLAC managed to buck the down trend today thanks to an upgrade from "sell" to "hold" by Citigroup this morning. The stock opened at $42.49 and surged to resistance near $44 and its 100-dma before reversing course and succumbing to profit taking. On a very short-term basis this is technically a failed rally pattern. Bigger picture little has changed. I would still consider new positions now or you could wait for a dip near $41 or the 200-dma as an alternative entry point. We're aiming for a move to $45.75. Aggressive traders could aim higher but we do not want to hold over the late July earnings report.

Current Position: Long KLAC @ $42.49

- or -

Long AUG $45 call (KLAC1120H45) Entry @ $1.20

Entry on July 11 at $42.49
Earnings Date 07/28/11 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on July 9, 2011


Macy's Inc. - M - close: 29.60 change: -0.82

Stop Loss: 28.49
Target(s): 29.90, 32.25
Current Gain/Loss: + 4.5%
2nd Position Gain/Loss: - 0.8% Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: Macy's gave back almost 2.7% today. Shares managed to find some support at its 10-dma but the close under $30.00 is short-term bearish. Readers may want to wait for a dip or a bounce near the $29.00 level before launching new positions.

At the moment our final target is $32.25 but we might consider adjusting this target higher.

Earlier Comments:
Our plan was to keep positions small to limit our risk.

- small positions -

Current Position: Long M stock @ $28.30

- or -

Long Aug. $30 call (M1120H30) Entry @ $0.85

- 2nd Position, entry 7/11/11 -

suggested position: Long M stock @ $29.86

Long Aug. $32 call (M1120H32) Entry @ $0.63

07/09 new stop loss @ 28.49
07/09 Add 2nd position, buy stock/calls now
07/08 Planned exit. July $29 call @ $1.50 (+167.8%)
07/07 plan on exiting July calls tomorrow at the close
07/02 new stop loss @ 27.90
07/01 1st Target Hit @ 29.90 (+5.6%), options @ +107.1% (July) & +52.9% (Aug)

Entry on June 28 at $28.30
Earnings Date 08/10/11 (unconfirmed)
Average Daily Volume: 8.6 million
Listed on June 27, 2011


Marsh & McLennan Companies - MMC - close: 30.49 change: -0.76

Stop Loss: 30.39
Target(s): 34.00
Current Gain/Loss: - 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: Wow! It doesn't get any closer than this. Over the weekend I suggested launch new positions on MMC's bounce from the $31.00 level with a stop at $30.45. Shares opened at $30.875 and then plunged toward short-term support near $30.50 and spent most of the day there. The intraday low today was $30.46. Our stop loss happens to be $30.45. I am going to adjust that down to $30.39. At this point I'd wait for a bounce in MMC before initiating new positions.

Our target is $34.00 but that might be a little optimistic. MMC does not move super fast. We do not want to hold over the early August earnings report.

Current Position: Long MMC stock @ $30.85

- or -

Long Aug. $32 call (MMC1120H32) current ask $0.45

07/11 new stop loss @ 30.39
07/09 adjusted strategy. Buy MMC now, new stop loss @ 30.45, small positions only.

Entry on July 11 at $xx.xx
Earnings Date 08/03/11 (unconfirmed)
Average Daily Volume: 3.4 million
Listed on July 2, 2011


UnitedHealth Group Inc. - UNH - close: 50.94 change: -1.14

Stop Loss: 49.85
Target(s): 54.75
Current Gain/Loss: - 0.6%
Time Frame: 3 to 4 weeks
New Positions: see below

Comments:
07/11 update: I have been suggesting that readers look for a dip or a bounce in the $51.00-50.00 zone as our next entry point. Well, we got the dip today. Cautious traders may want to wait for a bounce near $50 first before initiating new positions. Keep in mind that we don't have a lot of time left. We do not want to hold over the July 19th earnings report.

- small positions -

Suggested Position: Long UNH stock @ $51.25

- or -

Long July $50 call (UNH1116G50) Entry @ $2.07

07/02 new stop loss @ 49.85

Entry on June 24 at $51.25
Earnings Date 07/19/11 (confirmed)
Average Daily Volume: 7.9 million
Listed on June 23, 2011


Western Refining Inc. - WNR - close: 19.56 change: -1.05

Stop Loss: 18.45
Target(s): 24.00, 27.50
Current Gain/Loss: + 0.3%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: Good news! WNR's -5% decline on Monday was enough to hit our buy-the-dip trigger at $19.50. The play is now open with a stop loss at $18.45. Aggressive traders may want to put their stop under support near the $18.00 level instead.

FYI: The Point & Figure chart for WNR is bullish with a $28.50 target. Plus, the most recent data listed short interest at 38% of the 54.2 million-share float.

Current Position: Long WNR stock @ 19.50

- or -

Long AUG. $22 call (WNR1120H22) Entry @ $0.65

chart:

Entry on July 11 at $19.50
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume = 4.0 million
Listed on July 9, 2011


BEARISH Play Updates

St. Jude Medical - STJ - close: 46.38 change: -1.11

Stop Loss: 48.75
Target(s): 47.00, 46.10
Current Gain/Loss: + 9.0%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
07/11 update: STJ gapped open lower at $46.90 and closed on its lows with a -2.3% decline. Our exit target is $46.10. Cautious traders may want to exit now instead. Aggressive traders could certainly aim lower but I'm concerned the simple 200-dma might be support. I am not suggesting new positions at this time.

Earlier Comments:
We wanted to keep our position size small (about half or less than a normal trade) to limit our risk.

(Small Positions)

Current Position: Short STJ stock @ 51.00

07/09 new stop loss @ 48.75, adjust final target to $46.10
07/01 STJ has filled the gap just as expected
06/25 Adjusted final target to $45.25
06/23 1st target exceeded. Gap down at $46.50 (+8.8%)
06/23 new stop loss @ 50.05
06/16 exit June $50 put @ $1.95 (+95%)
06/15 prepare to exit our June $50 puts on Thursday at the close
06/04 New stop loss @ 51.05, added second target at $45.75
05/23 New stop loss @ 52.26

Entry on May 20 at $51.00
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume: 2.6 million
Listed on May 16th, 2011


CLOSED BULLISH PLAYS

Cepheid - CPHD - close: 32.02 change: -0.38

Stop Loss: 31.85
Target(s): 33.00
Current Gain/Loss: - 3.4%
Time Frame: 3 to 5 weeks
New Positions: see below

Comments:
07/11 update: Selling pressure in CPHD was pretty minor with a -1.1% decline at the close. However, the stock did drop under technical support at its 50-dma and slip to $31.40 this morning. Our stop loss was hit at $31.85. I would keep CPHD on your watch list. The long-term up trend is on the verge of getting broken. A rebound back above $33.00 might be a new entry point for bullish trades.

Earlier Comments:
Readers may want to avoid the call options. The spreads are wide.

closed Position: Long CPHD stock @ $33.00, exit 31.85 (-3.4%)

- or -

AUG $35 call (CPHD1120H35) entry @ $1.45, exit $0.60 (-58.6%)

07/11 CPHD broke support and hit our stop loss @ 31.85.

chart:

Entry on July 7 at $33.00
Earnings Date 07/21/11 (unconfirmed)
Average Daily Volume = 484 thousand
Listed on July 6, 2011


Nanometrics Inc. - NANO - close: 19.66 change: -0.75

Stop Loss: 19.45
Target(s): 19.25, 22.00
Current Gain/Loss: +15.6%
Time Frame: 6 to 8 weeks or more
New Positions: see below

Comments:
07/11 update: It was the worst one-day loss for the markets in over a month. NANO could not hold support at $20.00 or the 10-dma. Shares hit our new stop loss at $19.45.

closed Position: Long NANO stock @ $16.82, exit 19.45 (+15.6%)

07/11 stopped out @ 19.45 (+15.6%)
07/09 new stop loss @ 19.45
07/05 new stop loss @ 17.65
07/02 new stop loss @ 17.45. Consider an early exit right here @ $20.00
06/30 new stop loss @ 16.90
06/28 First Target hit @ 19.25 (+14.4%)
06/28 New stop loss @ 16.49

chart:

Entry on June 13 at $16.82
Earnings Date 08/04/11 (unconfirmed)
Average Daily Volume: 467 thousand
Listed on June 11th, 2011