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Long Play Updates

US Bancorp - USB - close: 35.06 change: -1.25 stop: 32.99

Investors look like they're starting to panic and global markets suffered a meltdown today. Asian markets, European markets were sharply lower and that led many U.S. stocks to gap down at the open. Shares of USB gapped down at $33.73 and slipped to $33.07 before bouncing back. We came very close to being stopped out. Extreme fear has pushed the VIX to multi-year highs, which should be forecasting some type of bottom soon. Aggressive traders might want to buy this bounce in USB. The safest bet will be to sit back and wait. Our first target is $39.95. Our second target is $42.20.

Picked on October 01 at $36.68
Change since picked: - 1.63
Earnings Date 10/21/08 (confirmed)
Average Daily Volume: 22.7 million
 

Short Play Updates

Coca-Cola Enterp. - CCE - cls: 15.08 chg: -0.83 stop: 16.85

CCE continued Friday's decline. The stock fell to $14.49 intraday before bouncing back into the closing bell. Readers can look for the bounce to fail under $16.00 as a new entry point for bearish positions. Our first target is $14.05 and we suggest readers take most of their money off the table here. We are adding a second target at $12.50. FYI: We do not want to hold over the late October earnings report.

Picked on October 05 at $15.91
Change since picked: - 0.83
Earnings Date 10/23/08 (unconfirmed)
Average Daily Volume: 2.7 million

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MarthaStewardLivingOmni - MSO - cls: 7.67 chg: -0.11 stop: 8.75

MSO opened up under its 200-dma and plunged to $7.27 before paring its losses. The stock ended the day with a mild 1.4% loss. Broken support in the $7.85 zone should be new resistance. Watch for the bounce to roll over before forming new positions. We have two targets. Our first target is $7.05. Our second target is $6.15.

Picked on October 05 at $ 7.78
Change since picked: - 0.11
Earnings Date 11/03/08 (unconfirmed)
Average Daily Volume: 496 thousand

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Starbucks - SBUX - close: 12.97 change: -0.69 stop: 15.01

There were no surprises here. SBUX continued to sink. The stock hit $12.49 intraday before bouncing back to a mere 5% loss. A failed rally under $14.00 can be used as a new entry point for bearish positions. We have two targets. Our first target is $12.05. Our second, multi-week target is $10.25.

Picked on October 05 at $13.66
Change since picked: - 0.69
Earnings Date 11/10/08 (unconfirmed)
Average Daily Volume: 12.2 million

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AT&T Inc. - T - close: 26.86 change: -1.26 stop: 29.55

Shares of T were sent to a new two-year low at $26.00 this afternoon. The market's bounce back managed to pare the stock's losses to just 4.4%. Watch for a failed rally in the $28-29 zone as a new entry point for bearish positions. Our target is $25.05.

Picked on October 05 at $28.12
Change since picked: - 1.26
Earnings Date 10/22/08 (confirmed)
Average Daily Volume: 29.1 million
 

Closed Long Plays

Wells Fargo - WFC - close: 33.64 change: -0.92 stop: 32.95

Any relative strength in WFC failed intraday. The stock traded from a high of $38.95 on Friday to a low of $31.92 today. That is an 18% range. Traders did buy the dip near WFC's rising 50-dma around $32.00 but it was too late for us. The stock hit our stop loss at $32.95. Concerns over the ongoing credit crisis in addition to uncertainty surrounding the potential deal with WB was too much for WFC shareholders.

Picked on September 30 at $ 37.53 /stopped out 32.95
Change since picked: - 3.89
Earnings Date 10/16/08 (unconfirmed)
Average Daily Volume = 54.5 million
 

Closed Short Plays

None
 

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