Option Investor
Newsletter

Daily Newsletter, Tuesday, 10/9/2012

Table of Contents

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

Market Wrap

Suddenly Economics Matter?

by Jim Brown

Click here to email Jim Brown

The IMF cut its global growth forecasts and warned of "alarmingly high risk" of a deeper global slump.

Market Statistics

The IMF blamed the U.S. and Europe for not doing enough to address economic threats. The IMF warned that U.S. lawmakers had to resolve the fiscal cliff issues that will send the country into recession in 2013 and depress global markets. The IMF warned that Europe must follow through on the plan for a integrated fiscal union, good luck with that, cut interest rates and stop austerity to keep Europe from falling into a deeper, longer term recession.

The IMF cut estimates for global GDP to +3.3% for 2012 compared to their last estimate cut to +3.5% in July. They cut global GDP estimates for 2013 from +3.9% to +3.6% with a 20% chance of growing at less than 2%.

This downgrade of expectations should not be a surprise to anyone. They have been routinely cutting estimates for some time but it was the addition of the "alarmingly high risk" statement that got everyone's attention.

The IMF said global confidence remains "exceptionally fragile" and increased risk aversion has slowed capital flows to emerging markets.

The 17 nation eurozone is expected to see negative GDP growth of -0.4% for 2012 and grow only +0.2% in 2013. That is extremely wishful thinking on the part of the IMF given the disasters in progress in Greece, Spain, Portugal, etc. They think Spain will decline -1.3% in 2013. That compares to some estimates as high as -4.5%.

When the IMF claims the global GDP will only increase by +3.6% in 2013 they are taking into account China +8.2% and India +6.0% growth. Those two nations account for 40% of the global population but only a fraction of the global economy. They are growing rapidly but still have a ways to go.

Another risk stated by the IMF was a hike in the average price of oil to more than $105 for all of 2013. That estimate has risen from $94.16 as recently as July.

It is not like we have not been aware of the deterioration in global economics. We hear it every day. The Teflon market has been in ignore mode. Eventually fundamentals matter and the weak global economics are going to have an impact on Q3 earnings. Why was today different? When the market needs to take profits traders will find an excuse. In this case it was the "alarmingly high risk" phrase in the IMF press release.

In the U.S. it was a light day for economics. The California Manufacturing Survey for Q4 declined from 61.1 to 58.0. That is the first slowdown in California manufacturing since 2011. New orders declined from 65.7 to 60.9 but anything over 50 is still growth. Employment fell from 56.0 to 52.9. The California survey is normally ignored by the market so no waves here.

The big news headlines came from Europe. The Troika said it was considering extending the deadline for Greece to meet a +4.5% GDP surplus from 2014 to 2016. Since Greece can't meet it anyway the Troika has no choice but to save face, avoid pushing Greece out of the euro and instead kick the can farther down the road. However, extending the deadline means Greece will need more money. There would be a 12 billion euro financing gap in addition to the 31 billion that has been on hold since June. The Troika spokesman said there was no consensus on who would contribute to the gap and how it would be handled. The IMF is adamant that Greece's debt be sustainable in order for the IMF to continue financing the bailout. For the IMF that means a debt to GDP of not more than 120% by 2020. Greece has zero chance of making that happen without another wholesale write-down of existing debt.

No big shock from the Troika review of Greece. More than 89 actions agreed to in the prior bailouts have yet to be completed and the IMF said all must be completed before they get any future funds. In a press conference IMF head, Christine Lagarde, said much more work needs to be done. "Acting means acting not just speaking" and "The list of prior actions MUST be implemented."

These headlines are all for show. Greece has no money and will default and go bankrupt without the next tranche of funds. EU Finance Ministers are going to whine and complain but in the end they will give Greece the money. The same process will apply to Spain when it begins the bailout dance later this month. Headlines will fly and officials will make demands but eventually they will buckle under and give Spain support.

A bigger headline was the tens of thousands of Greek citizens that showed up to protest the visit of German Chancellor Angela Merkel to Greece. Despite a ban on protests and beefed up security in certain areas a crowd of as many as 25,000 demonstrated in central Athens. Despite the protests the visit concluded peacefully with Merkel claiming Greece was a valued partner in the eurozone. I am very glad the demonstrations did not turn deadly and cause an international incident. Still, the video of protestors in the news was a weight on the market.

Tomorrow the eurozone finance ministers meet and will discuss Greece and Spain along with other issues. This meeting should be tame and headlines muted.

The Fed Beige Book on Wednesday afternoon will update economic conditions in all the Fed regions. No material change is expected and the report will try to put a positive spin on any negative points.

Economic Calendar

The headlines everyone was waiting for was the start of the Q3 earnings cycle with earnings from Alcoa and Yum Brands. Alcoa (AA) reported earnings after the close of 3 cents excluding charges. Analysts were expecting breakeven earnings so this was a small beat. Revenue declined from $6.42 billion to $5.83 billion and beat the estimates of $5.56 billion.

Alcoa's minor earnings beat was tempered by its lowered guidance. Alcoa said demand would rise only +6% in 2013 compared to prior estimates in July of 7% growth. That compares to actual growth in 2011 of +10% and +13% in 2010. The shrinking demand is crushing prices. Aluminum on the LME averaged $1,950 a ton in Q3, a -20% decline from the same period in 2011. The metal was trading at $2,054 in London today. The high in 2008 was $3,300 and the 2011 high was $2,803 per ton. Bloomberg expects aluminum to average $2,212 in 2013.

Shares of Alcoa were flat in afterhours trading.

Alcoa Chart

Yum Brands (YUM) posted earnings after the close of 99 cents, two cents above analyst estimates. That was a +23% increase in profits thanks to increased sales in the USA. Same store sales in the U.S. rose +6% compared to analyst estimates of +4.4%. Revenue was light at $3.57 billion compared to the $3.63 billion estimate.

In China same store sales also rose +6% with a whopping +22% increase in sales from all stores thanks to an aggressive store opening program. KFC and Pizza Hut opened +192 new stores. U.S. sales at all stores rose +16.7% compared to +12.1% in the prior period. The CEO announced YUM was going to open 1,750 new stores outside the USA. YUM expects full year 2012 earnings to grow +13% and another +10% in 2013. Shares rallied nearly $3 in afterhours.

YUM Chart

All the earnings news was not good. Cummins (CMI) warned after the close for the second time this year. CMI cited a slowdown in customer spending due to the weakening global economy. The company said it would cut up to 1,500 jobs and reduce the number of hours worked by the remaining personnel. Cummins said full year sales were now expected to be $17 billion, -$1.0 billion from its prior estimate. The CEO said demand in China had weakened in most end markets and they also lowered their forecast for global mining revenues.

Analysts were expecting a guidance cut from Cummins because of the slowdown in China. The one they got was sharper than they expected. CMI shares declined -4% in extended trading.

CMI Chart

Intel (INTC) was hit with a double downgrade from both Nomura Equity Research and RW Baird. Tristan Gerra, an analyst for Baird, said notebook shipments surged in September but overall end user demand remains weak. Inventories are too high and will impact margins.

Romit Shah, analyst at Nomura, has a sell rating on Intel and warned that margins could decline another 3%. He also warned that stock buybacks were slowing because of weak cash flow and the need to conserve cash for what is expected to be a weak first half in 2013. The analyst expects Intel's cash to have shrunk from $10 billion in Q2-2011 to $3 billion in Q4-2012.

Intel shares declined -3% on the downgrades.

Intel Chart

Late in the day the U.S. Attorney in Manhattan and the U.S. Dept of Housing and Urban Development, announced they had filed a civil mortgage fraud suit against Wells Fargo for its part in the housing boom and bust. The suit seeks damages and civil penalties from WFC under the False Claims Act and another federal law for more than ten years of alleged misconduct related to FHA loans. The bank denied the allegations saying it always acted in good faith and compliance with FHA and HUD rules. WFC said it had previously disclosed the investigation and will vigorously defend itself.

Shares of WFC declined -2% on the news. Shares of Bank of America, purchaser of Countrywide Mortgage, also declined but only fractionally. You can bet the AG will get around to BAC sooner rather than later.

WFC Chart

Apple (AAPL) shares may have found a bottom today. Shares declined to $623 after trading as high as $705 back on Sept 21st. The 100-day average at $621 was close enough for the bulls to jump in and the stock rebounded +17 intraday but faded at the close to end at $636. After an $80 decline the 100-day average was a clear support level and the iPad Mini is just around the corner.

Apple Chart

Crude oil rallied $3 to $92.30 on rising tensions between Syria and Turkey and news that Israeli PM Netanyahu had called for early elections and would probably dismiss the parliament. NATO head, Anders Fogh Rasmussen, warned on Tuesday about the increased danger of conflict between Syria and Turkey after both countries traded fire across their common border.

Netanyahu said the parliament had not been able to reach agreement on a budget and called for quick elections in three months rather than wait until the end of 2013. This is seen as a play to consolidate his support for his position on Iran and by cutting the lead time on the elections from 8 months to 3 months it gives his opponents less time to garner support. It also suggests there will not be any attack on Iran over the next three months but oil prices still rose.

On Saturday Israel shot down an unmanned drone over Israel and preliminary indications are that it came from Iran. It was probably launched locally by Hezbollah to gain intelligence on Israel.

Crude prices rallied on the news above despite the IMF warning of slowing global growth and comments by Saudi Oil Minister Ali al-Naimi. His comments at a ministerial meeting in Saudi Arabia were bearish on crude. He repeated the often said, "We will give the market whatever it needs. We will work to moderate prices." He warned that rising oil prices would further slow economic growth, mainly in developing countries.

WTI Crude Oil Chart

Brent Crude Chart

Tuesday was the five year anniversary of the 2007 market highs. The S&P closed at 1565.15 and the Dow at 14,164.53. The next day began a two month decline that would knock -150 points off the S&P and -1440 points off the Dow. Eventually after chopping around for a few months the financial crisis took hold and the rest as they say is history. The S&P declined to 666.79 in March 2009.

I sincerely hope that we are not in for another bout of market volatility anywhere close to what we saw after the highs in 2007. Just because equity funds have seen outflows for 15 of the last 16 months and half the world is in recession is no reason to drop -150 points on the S&P. Unfortunately, that could very well push us into a repeat of the 2007 drop as evidenced by the Goldman Sachs call for a return to 1250 by year end and Morgan Stanley's forecast of 1167.

Eventually fundamentals will matter. Even if the Fed were to up its injection of QE3 cash there is only so much the Fed can do as we rush towards the fiscal cliff. Unless the Fed starts using that money to buy stocks instead of bonds the cliff dive fears should weaken the market by year end. Was today the beginning? Who knows? That kind of analysis is best done long after the fact.

The S&P lost -14 points today to close at 1441. That is still +11 points over critical support although the futures are in dive mode tonight as a result of the WFC news, Alcoa and Cummins. There is still a lot of darkness before morning and the futures were crazy volatile last night. High volatility means increased indecision and uncertainty and that is not good for the market.

Support is 1430 and 1440 followed by 1400.

S&P Chart

The Dow lost -110 points but remains above critical support at 13,400. The WFC and CMI news will be bearish for the Dow on Wednesday. The CMI news will impact Caterpillar and the WFC news will impact all the financials in the Dow. Alcoa was neutral but with CMI trash talking the mining sector we could see Alcoa trade down as well.

You never know what news headline will break the back of a rally. Also, one daily drop does not change the trend. Until the Dow trades under 13,400 the bulls will keep the faith. Once the critical support levels begin to get hit we could see a run for the exits.

Dow Chart

Apple lost only $2.82 and was barely a speed bump for the Nasdaq. Unfortunately there were other big losers. GOOG -16, PCLN -13, ISRG -12, AMZN -8, NFLX -8, BIDU -8. The large cap safe deposit boxes for fund managers to store cash were all being emptied on Tuesday. The Nasdaq lost -45 points at the open and never recovered. We just can't blame Apple today.

Support at 3100 and 3085 did not even slow the morning dip as tech stocks headed south at a high rate of speed after the double downgrade of Intel. Nasdaq 3050 is the next support level and it is not far off. A break there takes us to 3000 and we don't want to even think about a break of the 3000 level.

The Nasdaq 100 fell below the 50-day average at 2776 for the first time since July 25th.

Nasdaq Composite Chart

S&P futures are down -3 points at 9:PM. So far that is just a hiccup on the WFC, AA, CMI news. If the futures don't get any worse then the bulls have a chance to resurrect the upward trend. Once news from Europe begins to hit the tape overnight we could see some positive sentiment return if the EU Finance Ministers are in can kicking mode.

This is the week I was expecting a decline in the markets so I am watching carefully for signs of additional weakness or underlying strength. As long as the big caps are being sold there is only one direction. Eventually those same fund managers will put that money back to work before month end so we need to look for signs of a bottom being made.

Until then, enter passively, exit aggressively!

Jim Brown

Send Jim an email


New Plays

Cutting Estimates

by James Brown

Click here to email James Brown

Editor's Note:

Additional Trading Ideas:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Many of these need to see a break past key support or resistance:

(bullish ideas) SEMG, STI, CTAS, FRP, BBG, OFC, CRK, VNR

(bearish ideas) BRE, LECO, NTAP, JDSU,


NEW BEARISH Plays

Sohu.com - SOHU - close: 39.58 change: -1.12

Stop Loss: 41.40
Target(s): 36.00
Current Gain/Loss: unopened

Entry on October 10 at $ xx.xx
Listed on October 9, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 472 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
On Monday the World Bank cut their growth estimates on Asia. Today it was the IMF who lowered their forecast for China's growth. Naturally Chinese stocks are under pressure with these headlines. We did see Chinese Internet stock SOHU breakdown under support near $40.00 and its 50-dma.

I have to warn you that SOHU can be a volatile stock so we need to limit our position size to reduce our risk or consider trading the options. I am suggesting small bearish positions at the open tomorrow with a stop loss at $41.40. Our target is $36.00. More aggressive traders could aim for the $34.00 area.

*Small Positions*

Suggested Position: short SOHU stock @ (the open)

- (or for more adventurous traders, try this option) -

buy the Nov $37.50 PUT (SOHU1211w37.5) current ask $1.85

Annotated chart:




In Play Updates and Reviews

Near the Lows

by James Brown

Click here to email James Brown

Editor's Note:
The market delivered a widespread sell-off today and the major indices closed near their lows for the session. That does not bode well for tomorrow morning.

I am removing GHDX as a candidate.

Current Portfolio:


BULLISH Play Updates

AGCO Corp. - AGCO - close: 47.13 change: -0.87

Stop Loss: 45.95
Target(s): 52.50
Current Gain/Loss: - 2.1%

Entry on October 4 at $48.15
Listed on September 29, 2012
Time Frame: exit prior to the late October earnings
Average Daily Volume = 1.1 million
New Positions: see below

Comments:
10/09/12: AGCO spent the day retreating lower and lost -1.8% by the closing bell. The combination of Thursday's reversal lower and today's drop doesn't look so hot for AGCO. More conservative traders may want to abandon ship. I am not suggesting new positions.

current Position: Long AGCO stock @ $48.15

- (or for more adventurous traders, try this option) -

Long NOV $50 call (AGCO1211k50) Entry $1.25

10/04/12 triggered @ 48.15



American Intl. Group - AIG - close: 35.45 change: -0.45

Stop Loss: 33.90
Target(s): 39.75
Current Gain/Loss: - 1.5%

Entry on October 9 at $36.00
Listed on October 8, 2012
Time Frame: exit prior to earnings on Nov. 1st
Average Daily Volume = 44 million
New Positions: Yes, see below

Comments:
10/09/12: AIG opened higher at $36.00 and then quickly succumbed to profit taking. Shares lost -1.25% by the closing bell. I cautioned readers yesterday that you might want to wait for a dip into the $35.25-35.00 zone and that certainly seems like where AIG is headed.

Our target is $39.75 but we'll plan on exiting prior to the early November earnings report. FYI: The Point & Figure chart for AIG is bullish with a $42.50 target.

Current Position: Long AIG stock @ $36.00

- (or for more adventurous traders, try this option) -

Long Nov $37 call (AIG1211k37) entry $0.76



Bio-Reference Labs - BRLI - close: 30.96 change: -0.55

Stop Loss: 29.90
Target(s): 34.75
Current Gain/Loss: + 2.3%

Entry on October 03 at $30.25
Listed on October 2, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 232 thousand
New Positions: see below

Comments:
10/09/12: Just as expected shares of BRLI dipped toward $30.00. Shares hit $30.28 and its 10-dma before paring its losses.

FYI: The Point & Figure chart for BRLI is bullish with a $49.50 target.

current Position: Long BRLI stock @ $30.25

10/04/12 new stop loss @ 29.90
10/03/12 new stop loss @ 29.25
10/03/12 triggered @ 30.25



Colfax Corp. - CFX - close: 36.72 change: -0.18

Stop Loss: 34.95
Target(s): 39.90
Current Gain/Loss: - 0.8%

Entry on October 01 at $37.00
Listed on September 29, 2012
Time Frame: 4 to 8 weeks
Average Daily Volume = 753 thousand
New Positions: see below

Comments:
10/09/12: CFX slowly drifted lower and is nearing its rising 10-dma. Both the 10-dma and 20-dma could offer some short-term technical support for CFX. I am not suggesting new positions at this time.

The plan was to keep our position size small to limit our risk. FYI: The Point & Figure chart for CFX is bullish with a long-term $59 target.

*Small Positions*

Suggested Position: Long CFX stock @ $37.00

10/01/12 triggered @ 37.00



Sun Hydraulics Corp. - SNHY - close: 27.06 change: -0.39

Stop Loss: 25.95
Target(s): 31.00
Current Gain/Loss: - 2.1%

Entry on October 03 at $27.65
Listed on October 1, 2012
Time Frame: exit prior to earnings in November
Average Daily Volume = 54 thousand
New Positions: see below

Comments:
10/09/12: SNHY fell -1.4%. The stock is testing short-term support near $27 and its 10-dma but there is no guarantee it will hold this level. I am not suggesting new positions at this time. More conservative traders may want to raise their stops!

Don't forget that we want to limit our position size to reduce our risk. SNHY could be volatile thanks to its lack of volume.

FYI: The Point & Figure chart for SNHY is bullish with a $38 target.

*Small Positions*

current Position: Long SNHY stock @ $27.65

10/03/12 triggered @ 27.65



Trex Co. Inc. - TREX - close: 33.24 change: -0.73

Stop Loss: 33.85
Target(s): 39.00
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 6, 2012
Time Frame: exit prior to the late October earnings report
Average Daily Volume = 251 thousand
New Positions: Yes, see below

Comments:
10/09/12: Hmm... we may have to give up on TREX as a trade. Shares are down sharply over the last two days. It's unlikely that TREX will breakout past resistance near $35.00 soon. We'll give it one more day to try and recover. Otherwise we'll probably drop it as a candidate.

Earlier Comments:
I am suggesting a trigger to open bullish positions at $35.15. If triggered we'll use a stop loss at $33.85. Our target is $39.00.

Trigger @ 35.15

Suggested Position: buy TREX stock @ (trigger)



BEARISH Play Updates

Centene Corp. - CNC - close: 35.62 change: -0.52

Stop Loss: 38.05
Target(s): 31.50
Current Gain/Loss: + 3.1%

Entry on September 20 at $36.75
Listed on September 19, 2012
Time Frame: exit prior to earnings on Oct. 23rd.
Average Daily Volume = 693 thousand
New Positions: see below

Comments:
10/09/12: CNC is finally breaking down and closing under support near $36 and its 100-dma. This is good news for the bears and offers a new entry point for bearish positions.

current Position: short CNC stock @ $36.75

- (or for more adventurous traders, try this option) -

Long Oct $35 PUT (CNC1220v35) Entry $1.20

10/02/12 new stop loss @ 38.05



Con-way Inc. - CNW - close: 27.98 change: -0.24

Stop Loss: 29.05
Target(s): 25.05
Current Gain/Loss: + 1.6%

Entry on September 20 at $28.44
Listed on September 19, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 787 thousand
New Positions: see below

Comments:
10/09/12: CNW erased yesterday's 24-cent gain and closed on its lows of the session. That doesn't bode well for tomorrow if you're bullish. Today's performance appears to be a failed rally near the bottom of the gap down on Sept. 20th. I am not suggesting new positions at this time.

Our target is $25.05. More aggressive traders could aim lower. The Point & Figure chart for CNW is bearish with a $20 target.

current Position: short CNW stock @ $28.44 (gap down)

- (or for more adventurous traders, try this option) -

Long Oct $27.50 put (CNW1220v27.5) Entry $1.00*

10/06/12 more conservative traders will want to seriously consider an early exit now to avoid a loss
09/25/12 new stop loss @ 29.05
09/20/12 new stop loss @ 29.55
09/20/12 entry on gap open lower at $28.44
*option entry price is an estimate since the option did not trade at the time our play was opened.



J.C.Penney Co. - JCP - close: 24.39 change: +0.46

Stop Loss: 25.05
Target(s): 20.25
Current Gain/Loss: - 3.5%

Entry on October 3 at $23.57
Listed on October 2, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 8.9 million
New Positions: see below

Comments:
10/09/12: I've recently expressed concern about our bearish JCP trade. The stock has not been cooperating. Shares moved against us today with a +1.9% gain and a bullish breakout above the 10-dma and 100-dma. If there is any follow through higher tomorrow we could see JCP hit our stop at $25.05. More conservative traders may want to exit early now. I am not suggesting new positions.

Earlier Comments:
I consider this a somewhat aggressive, higher-risk trade. We want to limit our risk by keeping our position size small.

*Small Positions*

current Position: short JCP stock @ $23.57

- (or for more adventurous traders, try this option) -

Long Oct $23 PUT (JCP1220v23) entry $0.65



Synaptics Inc. - SYNA - close: 23.20 change: -0.50

Stop Loss: 24.51
Target(s): 22.15
Current Gain/Loss: + 6.4%

Entry on September 26 at $24.79
Listed on September 25, 2012
Time Frame: 3 to 6 weeks
Average Daily Volume = 439 thousand
New Positions: see below

Comments:
10/09/12: SYNA underperformed the market with a -2.1% decline. It looks like shares are about to breakdown from their recent sideways consolidation.

Our target is $22.15 but more aggressive traders could aim lower.

Earlier Comments:
I do consider this a higher-risk, more aggressive trade because SYNA has already seen a big move down. We want to limit our risk and keep our position size small.

*Small Positions*

current Position: short SYNA stock @ $24.79

- (or for more adventurous traders, try this option) -

(exit on Oct 2nd, at the open)
Oct $25 PUT (SYNA1220v25) Entry $1.15 exit $1.65 (+43.4%)

10/06/12 new stop loss @ 24.51
10/02/12 planned exit to close our put option at the open
10/01/12 new stop loss @ 24.70, plan on exiting our October puts at the opening bell tomorrow
09/29/12 new stop loss @ 26.05, adjust exit target to $22.15



Titanium Metals - TIE - close: 12.39 change: -0.06

Stop Loss: 13.05
Target(s): 11.00
Current Gain/Loss: + 0.2%

Entry on October 4 at $12.41
Listed on October 3, 2012
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: see below

Comments:
10/09/12: There was no follow through on yesterday's bounce and TIE drifted lower. I would still consider new bearish positions at current levels.

*Small Positions*

current Position: short TIE stock @ $12.41



Veeco Instruments - VECO - close: 28.42 change: -0.59

Stop Loss: 30.15
Target(s): 26.25
Current Gain/Loss: + 4.5%

Entry on October 08 at $29.75
Listed on October 6, 2012
Time Frame: exit prior to the Oct 22nd earnings report
Average Daily Volume = 740 thousand
New Positions: see below

Comments:
10/09/12: The sell-off in VECO continues with a -2.0% decline on Tuesday. I am lowering our stop loss down to $30.15.

Earlier Comments:
A lot of investors are already bearish on this stock so there is a risk of a short squeeze should it unexpectedly move higher. The most recent data listed short interest at 29% of the 38.7 million share float. Thus you may want to use put options to limit your risk instead of shorting the stock.

current Position: short VECO stock @ $29.75

- (or for more adventurous traders, try this option) -

Long Nov $30 PUT (VECO1211w30) Entry $2.20

10/09/12 new stop loss @ 30.15
10/08/12 new stop loss @ 30.55



CLOSED BULLISH PLAYS

Genomic Health - GHDX - close: 34.01 change: -1.43

Stop Loss: 35.40
Target(s): 39.90
Current Gain/Loss: unopened

Entry on October xx at $ xx.xx
Listed on October 4, 2012
Time Frame: 4 to 6 weeks
Average Daily Volume = 205 thousand
New Positions: Yes, see below

Comments:
10/09/12: GHDX has continued to retreat from resistance near $37.00. The stock is now down three days in a row and breaking down through technical support. Our trade has not opened yet and I am removing GHDX as a candidate.

Trade did not open.

10/09/12 removed as a candidate

chart: