Option Investor
Newsletter

Daily Newsletter, Tuesday, 4/10/2012

Table of Contents

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

Market Wrap

Losses Accelerate

by Jim Brown

Click here to email Jim Brown

The Dow lost another 213 points and the Nasdaq 55 in the worst losing streak since December.

Market Statistics

The selloff that started with the FOMC minutes last week accelerated on worries over another meltdown in Europe and a Bernanke speech with no reference to the Nonfarm Payroll report. Bond yields in Spain rose to 6% and are in danger of pushing the country into a meltdown similar to Greece where Europe would have to come to their rescue. Unfortunately Spain is too big to save. The EU rescue fund is far too small to save Spain. The Madrid stock market fell to its lowest level since 2009 crash. Spanish officials said the country had fallen back into recession with a -1.7% GDP but Citigroup said it could be much worse. Unemployment is 23.6%. Spain's budget deficit is -8.5% and the target is -3% in 2013. Spanish officials roiled the market overnight saying Spanish banks needed to raise more capital because of a deteriorating economy. This caused analysts already leery of Spain's troubles to wonder if Spain's banks can survive any further economic declines.

Italy is also falling off a cliff. The Italian FTSE MIB index fell -757 points or -5% on Tuesday. Major Italian banks lost 7-8% in today's crash. Apparently the $1 trillion ECB LTRO sugar rush has ended and EU banks are no longer supporting bond offerings from Italy and Spain in fear of a 75% haircut like investors in Greek bonds suffered.

I have repeatedly warned the EU crisis will return and Greece will eventually default. The events this week reminded investors the ECB only kicked the can further down the road. It was not the end of the road as many thought. We are rapidly approaching another can kicking crisis but the cans (Italy and Spain) are much, much larger and will be significantly harder to kick.

The ECB could issue another 500 billion euro LTRO and that might postpone the problem for a couple months but quantitative easing can only go so far when the banks/countries borrowing the money run out of collateral or the will to increase their indebtedness. The only way this problem can be fixed permanently is with the breakup of the EU. Weaker nations heavily in debt need to be able to print their own currency rather than be tied to the euro.

In the U.S. the economic reports were decent but they could not slow the market drop. The Job Openings, Labor Turnover Survey (JOLTS) for February showed a small increase in job openings to 3.498 million from 3.477 million. That was a very small increase month to month but the headline number represents a 16.1% increase over February 2011. Hiring increased from 4.2 million to 4.4 million. This is a lagging report for February so it was mostly ignored.

The Wholesale Trade report for February showed inventories rose +0.9% and nearly twice the expectations of +0.5%. That was also stronger than the +0.6% gain in January. Sales increased in seven of nine categories. Sales of furniture and electrical equipment fell. The inventory to sales ratio remained flat at 1.17. While this report was positive it was also a lagging report and was mostly ignored.

The economic calendar for the rest of the week will be highlighted by the Fed beige Book on Wednesday, Google earnings on Thursday, Bernanke speech and WFC/JPM earnings on Friday.

Bernanke gave a speech on Monday night and there was not one word about the unexpected decline in the payroll report. One commentator compared Bernanke to Abraham Lincoln and the Emancipation Proclamation. Lincoln wrote the executive order to free the slaves but stuck it in his desk drawer for two months until he felt the time was right to release it. The commentator believes Bernanke knows exactly what he is going to do but is waiting until the right time to make the announcement. If Bernanke constantly alluded to some new program at some point in the future then the market would factor in its suspicions and when the announcement finally came there would be no surprise. By waiting he can pick the ideal time to drop the bomb.

President Harry Truman gave the order to drop the atomic bomb on Hiroshma several weeks before the actual event. However, in his order he said absolutely not before August 3rd 1945. He was planning on attending the Potsdam Conference in Potsdam Germany with the leaders of the Soviet Union, the U.K. and the USA. That conference to discuss the war was scheduled to be over on August 2nd. The bomb was dropped on August 6th.

Political and financial leaders like to be able to choose the time and place for a major event. With Europe imploding again and the stock market in free fall, Bernanke may be pushed to make an announcement before he is ready. That may dilute the impact but only time will tell.

Economic Calendar

The news intensity is increasing over the coming earnings cycle. Alcoa (AA) was the first Dow component to report and there was a major surprise. Alcoa reported earnings of 10-cents compared to expectations for a loss of 4-cents. Revenue was $6.01 billion compared to estimates of $5.77 billion. The CEO said he expected overall global demand to rise by +7% in 2012 despite a worsening European economy. He pointed out there were record physical premiums paid for delivery of aluminum on top of the benchmark exchange price in the USA, Asia and Europe. He felt that reflected "Very, very strong demand." Buyers are paying about $150 per ton over the benchmark price. Premiums in the Midwest are averaging 9.0-9.5 cents per pound over the benchmark.

Alcoa shares rose 60-cents to $9.83 after the earnings.

Alcoa Chart

Supervalu (SUV) posted adjusted earnings of 38-cents compared to estimates of 35-cents. Revenue fell -5% to $8.23 billion but that still beat estimates of $8.14 billion. Rising commodity prices slowed profits but the company said it was relying on store brands to maintain profitability. Supervalu issued full year guidance for the full year of $1.27 to $1.42 and that was well above analyst estimates of $1.18 per share.

SVU Chart

The earnings for Wednesday are TITN and ADTN and not names most people would know. The tech sector will be focused on Google after the bell on Thursday and volatility always follows Google's results. The financial sector will be focused on the dual earnings of Wells Fargo and JP Morgan on Friday.

Commodity prices have been crushed this week. Copper hit a high of $3.96 on March 3rd and it traded below $3.65 today. In copper futures that is a monster move that pushed it to a two month low. China's slowing economy is a main driver of those demand worries.

Copper Futures Chart

Crude oil had a bad day thanks to the falling market and expectations for lower global demand. China said oil imports rose only 5.2% in March. That was down from the +8% in February. I am always amazed by the market reaction to numbers. China's imports still ROSE by 5.3% for the month. Yes, it was slower than 8% but it is still a big number. WTI declined by -1.35 to $101 and Brent by -2.82 to $120. This is temporary.

WTI Crude Chart

Iran cut off oil exports to Greece and Spain and said it may halt exports to Germany and Italy according to the report on Iranian TV. However, these "counter sanctions" are only a political ploy to try and make it appear Iran is in control rather than the EU and the West. Spain said it quit buying Iranian oil several months ago. Greece shifted its purchases to Saudi Arabia last month. Iran has been claiming they cutoff deliveries to countries but only after those countries actually quit buying from Iran.

Iran is scheduled to meet on Saturday with the five nations in the UN Security council plus Germany in Turkey to talk about nuclear issues. However, Iran has protested Turkey as a site since Turkey has quit buying oil from Iran. It is unknown if the meeting is still going to happen. Iran has a habit of protesting everything and agreeing to nothing. The last attempt to hold talks in 2011 ended after two days when nobody could agree on what topics to discuss. Iran refused to talk about any nuclear subject.

Iran's president said today that Iran did not need the money from oil sales. He said Iran could go for 2-3 years without selling a single barrel of oil. Since oil exports account for $80 billion a year, 80% of Iran's foreign revenue and 60% of its annual budget, those claims are clearly bogus.

The six parties to the talks in Turkey are going to demand a shutdown of the newly built and highly secret enrichment facility in Qum and the shipment of all uranium enriched to more than 3.5%, the grade required to power reactors, to a third country for safe keeping. The hardliners in Iran are not going to agree to this. President Ahmadinejad said today "whoever seeks to violate the nuclear rights of the Iranian nation will get a blow to the mouth." I hope he has figured out how to eat oil because that may be the only thing Iranians have to eat before the year is out.

Apple (AAPL) did it again. The stock rose to a new high of $644 intraday and was briefly worth more than $600 billion. GE came close to that level once but Microsoft is the only other company that has actually done it. MSFT his that level in December 1999 but is less than half of that now.

Apple Chart

Priceline (PCLN) also rallied to a new high of $774.96 at the open before losing -$23.50 for the day.

Priceline Chart

Did the afternoon selloff in the Nasdaq big caps signal the end of the rally story? These stocks have not had a really bad day since December and the flight of the momentum junkies could be a sign investor sentiment is shifting.

The Dow had its first back to back triple digit loss since November 17th. This is the longest losing streak for the Dow since last August. The S&P is on its longest losing streak since November. The Dow has lost -548 points since its closing high of 13,264 on April 2nd. That is roughly a 4% decline and the -61 point drop in the S&P is also -4%. Same on the Nasdaq with a -128 point drop.

In normal times a 4-5% decline is just a regular bout of profit taking. A 5% decline on the S&P would take it to 1348. With strong support at 1340 I would suspect that level to hold on the first test. The indexes closed on their lows on Tuesday on much stronger volume than we have seen in a long time. The 8.2 billion shares was the strongest volume we have seen since December 16th at 9.0 billion. That was option expiration Friday in December.

S&P Chart - 120 Min

Decliners beat advancers by 5:1 but that should not be a surprise given the magnitude of the decline. However, down volume was only seven times up volume. It could have been a lot worse. We need a 10 times day for a reversal in normal markets.

The break below the 50-day average is a sell signal for some hedge funds and institutional traders. The big question now is whether the strong support at 1340 will be enough to slow the drop and allow traders to reevaluate their outlook.

S&P Chart - Daily

Unfortunately the Dow has already closed below the equivalent support level to the S&P 1340. The Dow closed under 12,750 and at the lows of the day. In theory the Alcoa earnings will produce a positive impact to the Dow but in practice the $9 price on AA has no weight in the Dow. The +7.5% bounce in AA in afterhours will not even be a speed bump in the Dow's direction.

However, S&P futures are up +4 points tonight in what I would describe as a reaction bounce rather than a change in sentiment. Alcoa was very positive in their earnings comments but we don't know if this positive sentiment will last until morning or be crushed by further declines in Europe overnight.

The next material support level in the Dow is 12,600 but that is also a minor bump in the road if the pace of selling continues.

Dow Chart - 120 Min

Dow Chart - Daily

The Nasdaq declined to close on the 50-day average but the Nasdaq rarely honors the 50. The Nasdaq is more reactive to the 100 and 200 day averages. The 3000 level was initial support and the close at 2991 could be considered a break of that support but breaks of less than 10 points are close enough to be ignored until confirmed. Stronger support at 2900 is likely to be tested if there is no immediate rebound on Wednesday.

Nasdaq Chart - Daily

The Russell 2000 suggests fund managers are in flight mode. The index closed below what should have been strong support at 785 but only by a point. A failure to rebound on Wednesday suggests we could be looking at a much stronger market decline in the days ahead.

Russell 2000 Chart - 120 Min

Russell 2000 Chart - Daily

I don't have a lot of confidence in the futures holding in positive territory overnight. European markets are too fragile and the bond vigilantes are on the prowl in Italy and Spain. Investors know the ECB is powerless to prevent an actual meltdown in those countries so a lot of blustery talk from the EU finance ministers may not have any impact. They had three months to put some real changes in place and blew it. Now they are behind the curve once again and the slope ahead is growing more slippery by the week.

In the U.S. the Alcoa and Supervalu earnings were positive but those companies don't have enough clout to really halt a charging market. Google could slow the tech decline or accelerate it. WFC and JPM could reverse the trend back to positive with some blowout earnings. It remains to be seen if they can pull it off.

I believe we are due for a larger decline than the -4% over the last week. All the markets are up strongly for the year and there has not been a material bout of profit taking since December. We are due for a real dip and the expectations for lousy earnings are not likely to push us higher. There may be a bounce in our immediate future but I think it will fail.

I am reprinting the Second Chance offer from the weekend newsletter because there was a technical problem with the signup page. That has been corrected and now the link works.

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Jim Brown

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New Plays

Inverse ETF

by James Brown

Click here to email James Brown


NEW BULLISH Plays

ProShares UltraPro Short QQQ - SQQQ - close: 11.44 change: +0.51

Stop Loss: 10.60
Target(s): 13.25
Current Gain/Loss: unopened
Time Frame: 4 to 8 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
If you think the correction is just getting started then check out the chart on the SQQQ. This is a leveraged inverse ETF on the NASDAQ-100 index. Essentially this ETF strives to produce three times the inverse of the QQQ's performance. If the QQQ drops -1% then the SQQQ should rise +3%.

It definitely looks like the SQQQ has produced a bottom with a mini double bottom in the last couple of weeks. I am suggesting a trigger to launch bullish positions on this ETF at $11.60 We'll start with a stop loss at $10.60. Our target is $13.25. More aggressive traders could aim higher.

Trigger @ $11.60

Suggested Position: buy SQQQ @ (trigger)

- or -

buy the May $12.00 call (SQQQ1219E12) current ask $0.75

Annotated chart:

Entry on April xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 2.3 million
Listed on April 10, 2011


In Play Updates and Reviews

Micron (MU) Hits Our Target

by James Brown

Click here to email James Brown

Editor's Note:
Our bearish trade on MU has hit our exit target. Meanwhile our new bearish trade on HITK has been triggered. Plus, we did see BMC, LVLT, TJX, WBSN, and WYN all get stopped out. I removed LAD as well.

Current Portfolio:


BULLISH Play Updates

Hain Celestial Group - HAIN - close: 43.16 change: -0.87

Stop Loss: 42.75
Target(s): 49.00
Current Gain/Loss: - 4.2%
Time Frame: up to its early May earnings report
New Positions: see below

Comments:
04/10 update: I had cautioned readers that if HAIN broke below $44.00 the next support level was $43.00. That is where shares traded to today. The intraday low was $42.94. More conservative traders may want to abandon ship. I am not suggesting new positions at this time. If the market continues to drop then HAIN will likely hit our stop loss tomorrow (stop @ 42.75).

current Position: long HAIN stock @ $45.05

- or -

Long May$45 call (HAIN1219E45) Entry $1.85

04/03/12 trigger @ 45.05

Entry on April 03 at $45.05
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 279 thousand
Listed on April 02, 2011


Skullcandy - SKUL - close: 16.08 change: -0.52

Stop Loss: 15.75
Target(s): 19.70
Current Gain/Loss: - 4.0%
Time Frame: up to its May earnings report
New Positions: see below

Comments:
04/10 update: SKUL tried to rally this morning but shares quickly succumbed to the market-wide sell-off. The stock is now testing support at prior resistance near $16.00. If the S&P 500 index opens positive tomorrow then readers could use this dip near $16.00 as a new entry point in SKUL but until the market finds support again it might be tough to win with bullish trades.

Earlier Comments:
Shares of this headphone and audio accessory maker could see a big short squeeze soon. The most recent data listed short interest at 123% of the very small 8.3 million-share float. Yes. That was 123%.

Our target is $19.70. More aggressive traders could aim higher. FYI: The Point & Figure chart for SKUL is bullish with a long-term $24.00 target.

current Position: Long SKUL stock @ $16.75

- or -

Long May $17.50 call (SKUL1219E17.5) Entry $0.85

04/05/12 triggered at $16.75

Entry on April 05 at $16.75
Earnings Date 05/09/12 (unconfirmed)
Average Daily Volume = 453 thousand
Listed on April 03, 2011


BEARISH Play Updates

Allegheny Tech. - ATI - close: 38.43 change: -0.71

Stop Loss: 41.15
Target(s): 35.25
Current Gain/Loss: + 0.8%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/10 update: ATI lost -1.8% but failed to breakdown to new relative lows. It will be interesting to see if Alcoa's (AA) better than expected earnings tonight will have an impact on ATI tomorrow. More conservative traders may want to lower their stop loss closer to $40.00.

current Position: short ATI stock @ $38.74

- or -

Long Apr $37.50 PUT (ATI1221P37.5) Entry $0.80

04/09/12 ATI gapped down at $38.74

Entry on April 09 at $38.74
Earnings Date 04/25/12 (unconfirmed)
Average Daily Volume = 1.6 million
Listed on April 07, 2011


Ctrip.com Intl. - CTRP - close: 20.85 change: -0.25

Stop Loss: 23.05
Target(s): 18.00
Current Gain/Loss: + 3.9%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: Hmm.... CTRP only lost -1.1%. Considering the market's widespread weakness I would have expected CTRP to break this recent sideways consolidation and hit new relative lows. I am cautious here. More conservative traders may want to tighten their stop loss.

Keep in mind that our target is $18.00 but the $20.00 level could be round-number, psychological support. Cautious traders may want to exit early near $20.

Earlier Comments:
Readers may want to keep their position size small or limit their risk by trading put options. The most recent data listed short interest at about 10% of the 131 million share float. That could raise the risk of a short squeeze.

It's possible the $20.00 level could act as round-number, psychological support but we are aiming for $18.00. The Point & Figure chart for CTRP is bearish with a $15.00 target.

current Position: short CTRP stock @ $21.70

- or -

Long Apr $21 PUT (CTRP1221P21) Entry $0.65

Entry on April 02 at $21.70
Earnings Date 05/--/12 (unconfirmed)
Average Daily Volume = 3.6 million
Listed on March 31, 2011


DeVry, Inc. - DV - close: 31.43 change: -0.66

Stop Loss: 34.05
Target(s): 30.25
Current Gain/Loss: + 3.7%
Time Frame: 2 to 3 weeks
New Positions: see below

Comments:
04/10 update: DV sank to new relative lows with a -2.0% decline. I am adjusting our stop loss down to $34.05. I'm not suggesting new positions at this time.

current Position: short DV stock @ $32.54

04/10/12 new stop loss @ 34.05
04/09/12 DV gapped open lower at $32.54

Entry on April 09 at $32.54
Earnings Date 04/24/12 (confirmed)
Average Daily Volume = 670 thousand
Listed on April 07, 2011


Hi Tech Pharmacal - HITK - close: 33.33 change: -1.74

Stop Loss: 36.25
Target(s): 300-dma (moving target)
Current Gain/Loss: + 3.1%
Time Frame: 2 to 4 weeks
New Positions: see below

Comments:
04/10 update: It was a big day for HITK. The stock broke down below support at the $35.00 level, below its simple and exponential 200-dma, and below our trigger to open bearish positions at $34.40.

I am not suggesting new positions at this time. Our target is the simple 300-dma (currently at $31.05).

current Position: short HITK stock @ $34.40

- or -

Long Apr $35 PUT (HITK1221P35) Entry $1.50

04/10/12 triggered at $34.40

Entry on April 10 at $34.40
Earnings Date 07/05/12 (unconfirmed)
Average Daily Volume = 155 thousand
Listed on April 09, 2011


CLOSED BULLISH PLAYS

BMC Software Inc. - BMC - close: 38.15 change: -0.95

Stop Loss: 38.90
Target(s): 44.00
Current Gain/Loss: - 4.0%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/10 update: BMC's decline accelerated lower with a -2.4% drop and a breakdown below its 50-dma. Our stop loss at $38.90 was hit early this morning.

closed Position: Long BMC stock @ 40.55, exit $38.90 (-4.0%)

- or -

May $40 call (BMC1219E40) Entry $2.20 exit $1.15 (-47.7%)

04/10/12 stopped out at $38.90
04/07/12 adjust stop loss down to $38.90
04/02/12 triggered at $40.55

chart:

Entry on April 02 at $40.55
Earnings Date 05/02/12 (unconfirmed)
Average Daily Volume = 2.0 million
Listed on March 29, 2011


Lithia Motors - LAD - close: 24.47 change: -1.71

Stop Loss: 25.25
Target(s): 29.75
Current Gain/Loss: unopened
Time Frame: up to its late April earnings report
New Positions: Yes, see below

Comments:
04/10 update: Shares of LAD were just crushed today with a -6.5% drop. I couldn't find any specific news behind the relative weakness. Today's close under technical support at its 50-dma is bearish. I am removing LAD from the newsletter. Our trade never opened.

Trigger @ $27.35

Our Trade Never Opened.

04/10/12 removed. trade did not open
04/07/12 adjust entry trigger to $27.35 (from 27.25)

chart:

Entry on April xx at $ xx.xx
Earnings Date 04/25/12 (unconfirmed)
Average Daily Volume = 293 thousand
Listed on April 03, 2011


Level 3 Communications - LVLT - close: 24.25 change: -1.39

Stop Loss: 24.95
Target(s): 29.00
Current Gain/Loss: - 4.6%
Time Frame: 4 to 8 weeks
New Positions: see below

Comments:
04/10 update: LVLT underperformed the market as well. Shares opened lower at $25.53 and then plunged to $23.85 intraday. The stock has closed under its 40-dma, 200-dma, and its 300-dma. LVLT also broke through the $25.00 level. Our stop loss was hit at $24.95.

closed Position: Long LVLT stock @ $26.17, exit $24.95 (-4.6%)

- or -

Apr $25 call (LVLT1221D25) Entry $2.30 exit $0.75 (-67.3%)

04/10/12 stopped out at $24.95
04/03/12 new stop loss @ 24.95
03/31/12 LVLT is underperforming. Readers may want to exit early
03/26/12 today's bounce off the 10-dma could be a new entry point
03/15/12 new stop loss @ 24.70, adjust exit target to $29.00
03/15/12 trade opened on LVLT's gap higher at $26.17, which is above our trigger to open positions at $25.25.

chart:

Entry on March 15 at $26.17
Earnings Date 05/03/12 (unconfirmed)
Average Daily Volume = 2.4 million
Listed on March 14, 2011


TJX Companies - TJX - close: 38.67 change: -1.34

Stop Loss: 38.65
Target(s): 41.50
Current Gain/Loss: + 0.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/10 update: TJX was finally hit with some profit taking. Shares plunged -3.3% and hit our stop loss at $38.65 intraday.

closed Position: Long TJX stock @ $38.60 exit 38.65 (+0.1%)

- or -

(closed 04/03/12)
Apr $37.50 call (TJX1221D37.5) Entry $1.60 exit $2.40 (+50%)

04/10/12 TJX hit our stop at $38.65
04/07/12 new stop loss @ 38.65
04/03/12 new stop loss @ 38.45
exited April $37.50 calls at the open, bid was $2.40 (+50.0%)
04/02/12 prepare to exit Apr 37.50 calls at the open tomorrow, current bid is $2.55 (+59%)
03/31/12 new stop loss @ 38.25
03/29/12 new stop loss @ 37.95
03/26/12 conservative traders may want to take profits near the $40.00 mark
03/21/12 TJX hit our entry trigger at $38.60

chart:

Entry on March 21 at $38.60
Earnings Date 05/15/12 (unconfirmed)
Average Daily Volume = 4.6 million
Listed on March 20, 2011


Websense, Inc. - WBSN - close: 20.06 change: -0.59

Stop Loss: 20.30
Target(s): 23.50
Current Gain/Loss: - 4.4%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/10 update: WBSN underperformed the market with a -2.8% decline. Our stop loss was hit at $20.30. Shares did find support this afternoon near $20.00 and its 30-dma. I would watch WBSN to see if shares can build on support at the $20 level again but for now the short-term trend is down.

closed Position: buy WBSN stock @ $21.24 exit $20.30 (-4.4%)

03/29/12 new stop loss @ 20.30
03/26/12 Trade opened on WBSN's gap higher at $21.24. This is above our trigger of $21.15.

chart:

Entry on March 26 at $21.24
Earnings Date 04/24/12 (unconfirmed)
Average Daily Volume = 388 thousand
Listed on March 22, 2011


Wyndham Worldwide - WYN - close: 44.81 change: -1.28

Stop Loss: 44.75
Target(s): 49.50
Current Gain/Loss: - 1.1%
Time Frame: 6 to 8 weeks
New Positions: see below

Comments:
04/10 update: The market's widespread sell-off was enough to push WYN outside of its bullish channel. Our stop loss was hit at $44.75.

closed Position: Long WYN stock @ $45.25 exit $44.75 (-1.1%)

- or -

Apr $45 call (WYN1221D45) Entry $1.65 exit $0.63 (-61.8%)

04/10/12 stopped out at $44.75
04/03/12 new stop loss @ 44.75
03/29/12 new stop loss @ 44.30
03/13/12 new stop loss @ 43.75
03/13/12 trade triggered at $45.25

chart:

Entry on March 13 at $45.25
Earnings Date 04/26/12 (unconfirmed)
Average Daily Volume = 1.7 million
Listed on March 12, 2011


CLOSED BEARISH PLAYS

Micron Technology Inc. - MU - close: 7.15 change: -0.20

Stop Loss: 8.11
Target(s): 7.05
Current Gain/Loss: +11.7%
Time Frame: 3 to 6 weeks
New Positions: see below

Comments:
04/10 update: Target achieved. The sell-off in technology stocks helped push MU to an intraday low of $7.03. Our exit target was $7.05.

closed Position: short MU stock @ $7.98 exit 7.05 (+11.7%)

- or -

Apr $8.00 PUT (MU1221P8) Entry $0.37 exit $0.96 (+159.4%)

04/10/12 target achieved at $7.05
04/09/12 new stop loss @ 8.11
04/04/12 new stop loss @ 8.25
04/02/12 triggered at $7.98

chart:

Entry on April 02 at $7.98
Earnings Date 06/21/12 (unconfirmed)
Average Daily Volume = 33.0 million
Listed on March 31, 2011