Editor's Note:

I hesitated to add a bunch of new plays ahead of the FOMC decision and statement Wednesday afternoon. That doesn't mean there aren't plenty of candidates. Just a few that caught my eye today are the following: Visa (V) has pulled back toward support in the $60 zone and it's starting to rebound. LMT looks like it's breaking down but today is bounced from round-number support at $80.00. A trigger under $80 could work for put plays. ACL is building up steam for a bullish breakout from its consolidation. Readers may want to use a trigger over $115.00 as a possible entry point. HES has pulled back sharply from its highs near $70 toward key support at $50.00. Aggressive traders could buy this bounce or you could look for another dip near $50.00 with a tight stop. The GLD gold ETF is starting to bounce from the $90.00 level but the short-term trend is still down. I was tempted to buy calls with a tight stop under $90.00 but if the Federal Reserve comes out tomorrow and says inflation is dead and will be dead for a while then gold futures might weaken.


NEW DIRECTIONAL CALL PLAYS

Euro Currency ETF - FXE - close: 140.76 chg: +2.11 stop: 137.90

Why We Like It:
The bounce in the dollar appears to be fading. Just as the dollar is breaking down from its oversold bounce the Euro is breaking out from its three-week consolidation. Arguably the European economy is in worse shape than the U.S. but as the U.S. continues to print record amounts of debt the dollar is weakening.

Traders should note that this might be an aggressive entry point ahead of the FOMC decision on Wednesday at 2:15 p.m. Eastern. More conservative traders may want to wait until Thursday before considering positions. Currently the Euro is poised to move higher. I'm suggesting call positions on the FXE now or on dips near $138.50. Our first target is $144.50. Our second target is $148.50. The P&F chart is bullish with a $168 target.

Suggested Options:
I am suggesting the August calls. Readers may want to consider the September strikes. Strikes are available at $1.00 increments.

BUY CALL AUG 140 FXE-HJ open interest= 42  current ask $3.90
BUY CALL AUG 144 FXE-HN open interest=  1  current ask $2.15
BUY CALL AUG 148 FXE-HR open interest=  0  current ask $1.15

Annotated Chart:

Picked on     June 23 at $140.76
Change since picked:      + 0.00
Earnings Date           00/00/00
Average Daily Volume =       461 thousand    
Listed on  June 23, 2009         


Murphy Oil - MUR - close: 51.51 change: +0.81 stop: 49.90

Why We Like It:
The profit taking in some of the oil stocks has been pretty severe. The dollar is starting to roll over again and that should provide a positive under current crude oil. It may be time to consider some buy-the-dip trades in the oil sector. Shares of MUR have fallen toward support. I'm suggesting call positions now with a stop loss at $49.90. More aggressive traders may want to use a stop under the rising 100-dma currently at $49.17 instead. Our first target is $54.50. Our second target is $58.00.

Suggested Options:
Earnings are expected in late July. I'm suggesting the August calls but we'll plan to exit ahead of earnings.

BUY CALL AUG 50.00 MUR-HJ open interest= 64  current ask $4.80
BUY CALL AUG 55.00 MUR-HK open interest= 40  current ask $2.50

Annotated Chart:

Picked on     June 23 at $ 51.51
Change since picked:      + 0.00
Earnings Date           07/29/09 (unconfirmed)
Average Daily Volume =       1.9 million  
Listed on  June 23, 2009