Option Investor

Daily Newsletter, Thursday, 12/8/2011

Table of Contents

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

Market Wrap

Preview of Coming Attractions

by Jim Brown

Click here to email Jim Brown
The markets got a preview of what we can expect on Friday when headlines from Europe showed an increasingly fractured coalition and slim chance of a grand plan emerging on Friday.

Market Statistics

The grand plan is slowly fraying at the edges. Nearly every headline out of Europe this morning outlined a different component of the rumored resolution that was deviating from expectations. The first crack in the anticipated plan came from the head of the ECB, Mario Draghi, when he said the bank would NOT be buying a large amount of bonds and it would NOT be lending money to the IMF so the IMF could loan it to needy countries. Draghi said lending to the IMF for that purpose would be illegal according to the current rules.

Last week the ECB head made comments suggesting the ECB could be ready to come to the rescue with a large and aggressive buying program if the top six credits in the euro zone were to agree to a new fiscal pact. It was also rumored the ECB could be ready to loan from 250 to 350 billion euros to the IMF so they could loan it to Italy, Spain and other needy countries. Neither rumor is true according to Draghi. He also said he was surprised to see the market misunderstood his earlier comments regarding aggressive bond buying. The markets always expect the best. Expectations are like yeast to the market.

The ECB did cut interest rates by 25 basis points to 1.0% and they announced three year loans for EU banks. They lowered the rules on the collateral they would accept for those loans. They also lowered the collateral they would require for holding sovereign debt. In any normal week those would be big moves for the ECB but they were ignored today.

While on the subject of the EU banks the EU Banking Regulator said today the banks need to raise an additional 115 billion euros in capital. That is larger than the 106 billion in the last estimate in October.

The grand plan being discussed over the last couple of weeks suggested the stronger countries wanted a fiscal pact with teeth where budgets would be approved by the European Commission. That appeared to falter on Thursday as multiple countries objected to unelected bureaucrats in another country telling everyone how they could spend their money. We knew this was not going to fly. I have said so many times. Why it would come as a shock to the market is confusing. It is that hopium drug again.

The fiscal pact portion of the EU summit may eventually happen but it will be a very long process. The chances it would happen in some form at this 15th EU summit on the debt crisis were slim to begin with and they went downhill from there. Sarkozy reiterated the need to change the taxation rules on euro zone countries and change the labor laws as part of the fiscal process. Don't hold your breath there. Merkel changed her tone from "we must get something done this week" to "the current discussions are just one step in a very long process." While the EU leaders are open to looking at some changes to the treaty the first drafts of the new language have now been targeted for March. Once the final draft is complete it could take up to two years to get all EU countries to approve it. That assumes they will approve it and I have serious doubts that many countries will cede budget power to the EU commission.

Another buildup of expectations suggested the European Financial Stability Fund (EFSF) and the new European Stability Mechanism (ESM) would operate simultaneously. The ESM will have 500 billion euros to use for bailouts. That fund was supposed to start in 2013 but they said today it would be moved forward to July 2012. Unfortunately Germany rejected the idea of operating both side by side and that plan went down in flames. That means the EFSF will end in July when the ESM begins. It also cuts nearly in half the available funds at that time.

They are talking about a change to the new ESM fund to allow action with only 85% of the members voting for approval to spend the money. This is fallout from Finland holding up the Greek bailout and wanting collateral for their loans. I am assuming they will need 100% to approve the new rules to act on an 85% vote in the future. Will that 100% vote pass since the dissenters will be essentially losing their vote in future matters?

Lastly Germany vetoed the idea of making the ESM a bank so they could borrow from the ECB. That further cripples the future capabilities of the ESM.

The euro zone is a monetary union not a fiscal union. That means countries like Greece can spend ten times the money of other countries and still benefit from the common currency. There is no risk their overspending and massive debt will tank their currency since they are essentially using the common currency to mask their spending. That was the past. Sarkozy and Merkel are now lobbying for a balanced budget clause in the new fiscal pact that would limit budget deficits to 3% of GDP and carry automatic penalties for failure to stick to that budget. If your welfare state always spends more than that and you know that is not likely to change then why would you vote to penalize yourself and impose limits you can never reach?

The hope for a sixth comprehensive plan to come out of the 15th EU debt summit was misplaced. The market reaction today is likely a preview of coming attractions. At this point I don't see any possibility of a grand plan being announced on Friday. Just before the market closed there was a leaked draft of the EU post meeting announcement. There was little in the way of material changes and definitely some serious disagreements. The market plunged to the lows of the day as the details were made public. This was a "leaked draft" so anything can change on Friday but it would take a major shift in positions and the addition of multiple new talking points before the market will get excited again.

Sarkozy said late today, "If we don't have a material agreement by tomorrow, we are out of time" meaning they would be unable to avoid a further significant worsening of the crisis.

The next challenge is the S&P downgrades. They warned they could downgrade 15 euro zone countries, the EFSF, the EU in general and the entire European banking system if a material agreement was not reached. It appears there is no real agreement and certainly nothing material in the form S&P was expecting. How long will it take S&P to follow through on their threats?

U.S. banks were crushed today as traders shorted every financial institution in sight. They have banned shorting of financial institutions in Europe so the only way to protect yourself against declines in Europe is to short U.S. banks. JPM fell -5%, Citi -7% and Morgan Stanley -8%.

In the U.S. there was some good economic news that spiked the futures before the open. The weekly jobless claims dropped sharply to 381,000 and the lowest level since February. Last week's 402,000 number was revised only slightly higher to 404,000. These numbers do have seasonal adjustments to account for the holidays and hiring patterns so they can be volatile. I would not put too much faith in a -23,000 decline in claims in one week. However, even if the number is revised higher next week it should still be well under 400,000 and a step in the right direction.

Jobless Claims Chart

Wholesale trade for October rose a whopping +1.6% compared to estimates of +0.3% and a decline of -0.1% in the prior month. Sales rose +0.9% compared to +0.3% in the prior month. Durable goods inventories rose +0.8% and nondurable goods rose +2.8%. Inventories rose in nine out of ten categories. The rise in inventories should be a strong support for Q3 GDP gains.

Moody's Inventory Chart

The economic calendar for Friday only has a couple reports but they will be ignored because of the EU summit meeting in progress.

Economic Calendar

Stock news was mostly ignored because the EU summit and the grilling of Corzine monopolized the headlines. Jon Corzine was interrogated by Congress about the missing $1.2 billion at MF Global. He did not take the Fifth Amendment and tried to answer the questions asked without getting into too much trouble. Since he was a former senator he knew the drill. Talk slowly, admit nothing, claim no knowledge and be polite.

When asked repeatedly if he authorized anyone to use customer segregated funds for company purposes he said he did not "intend" to give anyone instructions that would have put customer money at risk. "Intent" is a key word. Without intent to commit wrong it is hard to prosecute for the wrongdoing. It ends up being a series of unfortunate events. He was asked to describe a scenario where someone may have misunderstood his instructions. He said it was possible he told underlings to "fix it, we have to fix it" on the night he found out the company was insolvent. Obviously, this will eventually boil down to a "he said, they said" argument in court on who may have done what and when. That will be months down the road. Corzine did say repeatedly he expected the money to be found. He said I was as shocked as you when I heard the money was missing. Time will tell if that was a true statement.

There could be as many as 10,000 accounts still frozen or worse investors holding insufficient checks for their withdrawals. Investors began to close accounts and flee MF Global several days before the company filed bankruptcy. If your account was still open then your funds were supposedly safe and would be returned to you in the bankruptcy process. If you closed your account in advance and received a check for the balance and that check bounced as thousands have then you have a claim in the bankruptcy for your unpaid check. While the two claims may sound the same the resolution may be entirely different.

A NSF check is just a debt while segregated funds are not a part of the bankruptcy at least in theory. Obviously lawyers will argue that the checks were segregated funds as well but it is one more layer of legal standing that must be proved. Lastly MF must have funds to distribute. If they really comingled funds and those funds are gone then that presents another complication to the bankruptcy court. You could end up the "victim" of a fraud and only receive a portion of recovered funds. Those whose checks actually cleared could be forced to return a portion of those funds to compensate victims who received nothing. This is not a pretty picture and it has seriously impacted trading in the commodities markets. The most logical scenario is that MF was hit by major margin calls in the final days as the company imploded and funds were moved among accounts to cover those margin calls.

Tesla Motors (TSLA) was downgraded by Morgan Stanley to underweight from overweight and the price target slashed -37% or -$26 to $44. TSLA shares fell -10% to $31 on the downgrade. MS analyst Adam Jonas said although there was increased interest in electric vehicles they were not yet ready for prime time and would be slow to catch on with drivers. Tesla only sells one car, the Roadster, for $109,000. The Model S, four door sedan, is expected to be launched this summer. Jonas said that would allow Tesla to ramp up revenue over the following year but sales would be slower than investors expect. He said the market for electric vehicles would likely be only 4-5% of the total market through 2025. That was down from his prior prediction of 8.6%. He cut his estimates because of improvements in gasoline engine technology, disappointing sales of electric cars in general and the prospects for a weak European economy.

Tesla Chart

Texas Instruments (TXN) warned after the close the weak global economy had cut demand for its chips. The company said it saw "broadly lower demand across a wide range of markets, customers and products" except for wireless application processors used in smartphones and tablets. In Q4 the company said it now expects to earn 21-25 cents compared to an earlier forecast of 28-36 cents. Analysts were expecting 35-cents. TXN shares were hit hard after the close but the warning came so late there was little time for traders to react. I would expect further declines on Friday.

Texas Instruments Chart

The S&P rallied this week exactly to strong resistance at the 200-day average at 1265. After four days of bumping against that strong resistance while we waited for the political theater to play out in Europe, traders finally gave up hope and the S&P declined -26 points today.

In the end there was simply not enough conviction there would be a successful resolution in Europe to push the markets higher. Without a stunning change of events overnight I would expect traders to lose interest and I worry the normal December rally is in jeopardy.

I have said several times I was skeptical the EU leaders could pull a rabbit out of their collective hat and actually come up with a solution. There is too much disagreement because there are marked differences in governments and societies in each of the euro zone countries. We have seen this movie before with 15 debt crisis summits and five comprehensive solutions and we are not much closer to a solution than we have been in the past.

I believe the potential for further gains over 1265 in the near future is going to be slim. I could be totally wrong and anything is possible but we need to be aware of the possibility of a decline and it could be a steep decline. The flurry of warnings like we saw from Texas Instruments tonight are a sign the global economy is slowing. Shipments from Asia to Europe are down -20%. Europe is falling into an austerity recession. China has posted troubling declines in manufacturing and services activity. The U.S. is the only major growth area today and our pace is at crawl speed. I think these factors will become more of a drag on the markets now that Europe has failed a critical test.

The S&P closed at 1234 but there is no real support until those same levels we struggled with on the way up at 1225, 1200, 1185, 1160. I would certainly hope we don't have to retest those lows but what is the market going to use for hopium in the days ahead?

Strangely the S&P futures are up +4 points tonight.

S&P Chart

The Dow declined to 12,000 at the close and what is seen as round number support. A break there should be an express elevator ride back to 11,600. The financials are a major component of the Dow and they will not likely recover if Europe fails to produce a credible plan. The energy stocks are also a major component and without a plan European oil demand would be expected to decline. Tech stocks are a major component and the warning from Texas Instruments should weigh on them on Friday.

I would be very surprised to see a material rebound from here.

Dow Chart

The Nasdaq closed down -53 points even though Apple was positive on some iPhone sales news. The Nasdaq closed under 2600 and the warning by TXN after the close should weigh heavily on tech stocks on Friday. I fear we are going lower unless something changes quickly. Support is 2600 so the open will be a key indicator.

Nasdaq Chart

In case I have not made myself clear in past commentaries. I viewed the European outcome as questionable at best and remained skeptical the market would move higher after the announcement. I recommend only small positions and tight stops if traders had to be in the market. Those fears appear to be coming true and once past Friday we need to find something else to focus on for market sentiment.

The next milestone to pass is the FOMC meeting on Tuesday. With the improvement in U.S. economics they might not want to change policy with an eye towards further easing. However, if the market implodes on another failed EU summit they may try to head off a new bear market by announcing some new program. At least that is what the market will be hoping for after Friday.

Trade the trend and take profits early.

Have You Renewed Yet?

Every December we offer the best prices of the year on a renewal package of our top newsletters. If you have been a subscriber for several years you know this is the best price and the best deal of the year.

This year we are offering Option Investor, Premier Investor, Leap Trader, Option Writer and our new newsletter starting in January, Ultimate Investor.

Please follow the link below to see for yourself the EOY subscription special for 2011. You will not be disappointed!

Jim Brown

Send Jim an email

New Plays

Rolling Over

by James Brown

Click here to email James Brown


PACCAR Inc. - PCAR - close: 38.74 change: -1.03

Stop Loss: 40.55
Target(s): 32.50
Current Gain/Loss: + 0.0%
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
It looks like PCAR is falling back into a bearish pattern of lower highs and lower lows. Shares just saw their oversold bounce stall and now PCAR is breaking down through all its key moving averages. If the EU summit tomorrow disappoints then stocks are likely to accelerate lower.

I am suggesting small bearish positions tomorrow morning with a stop loss at $40.55. More conservative traders could lower their stop closer to $40.00 while more aggressive traders could place their stop above $41.30 instead. There is possible support near $36.75, near its November low, but we're aiming for $32.50.

NOTE: Readers may want to use the put options to limit your risk just in case the Europeans deliver good news tomorrow and the market rallies.

(Small Positions)

Suggested Position: short PCAR stock @ the open

- or -

buy the 2012Jan $36 PUT (PCAR1221M36) ask $1.15

Annotated chart:

Entry on December xx at $ xx.xx
Earnings Date 02/01/12 (unconfirmed)
Average Daily Volume = 2.7 million
Listed on December 08, 2011

In Play Updates and Reviews

Cautious Outlook on Europe

by James Brown

Click here to email James Brown

Editor's Note:
Investors remain nervous about Europe and stocks sank on Thursday ahead of the next EU summit. U.S. markets experienced a widespread decline. We had two trades (EXPE and JJC) get stopped out.


Current Portfolio:

BULLISH Play Updates

AutoNation Inc. - AN - close: 35.71 change: -0.54

Stop Loss: 34.75
Target(s): 39.50
Current Gain/Loss: + 3.6%
Time Frame: 6 to 8 weeks
New Positions: see below

12/08 update: The widespread market declines pulled AN to a -1.5% drop. Shares look poised to test the $35.00 level soon. If we see a bounce near $35.00 I'd buy it (with our stop loss at $34.75).

Earlier Comments:
Our multi-week target is $39.50. More conservative traders may want to exit in the $37.75 region instead.

current Position: Long AN stock @ $34.45

- or -

Long Jan $35 call (AN1221A35) Entry $1.95

12/03/11 new stop loss @ 34.75
11/30/11 new stop loss @ 33.45

Entry on November 22 at $34.45
Earnings Date 02/02/12 (unconfirmed)
Average Daily Volume = 1.3 million
Listed on November 21, 2011

Activision Blizzard, Inc. - ATVI - close: 11.93 change: -0.34

Stop Loss: 11.59
Target(s): 13.45
Current Gain/Loss: - 3.0%
Time Frame: 4 to 8 weeks
New Positions: see below

12/08 update: It was a rough day for ATVI with shares falling -2.7%. The stock has closed under what could have been potential support near $12.00. Now it looks like ATVI might be headed for its November lows near $11.60. More conservative traders may want to abandon ship now. I am not suggesting new positions at this time.

current Position: Long ATVI stock @ $12.30

- or -

Long FEB $13 call (ATVI1218B13) Entry $0.42

11/30/11 trade open. ATVI gaps higher at $12.30
11/29/11 ATVI gapped open lower. Trade not open yet.

Entry on November 30 at $12.30
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 14.9 million
Listed on November 28, 2011

Brocade Communications - BRCD - close: 5.36 change: -0.20

Stop Loss: 4.98
Target(s): 6.45
Current Gain/Loss: + 2.1%
Time Frame: 8 to 12 weeks
New Positions: see below

12/08 update: BRCD erased a big chunk of our unrealized gains with today's -3.6% pull back. The stock closed just pennies below its 10-dma and simple 200-dma. If the market continues to drop tomorrow we could see BRCD retrace toward the $5.00 level. I'd wait for a bounce near $5.20 or $5.00 before considering new positions.

Earlier Comments:
Keep in mind that the simple 200-dma near $5.40 could still be technical resistance. I expect this trade to take many weeks to play out but we're aiming for $6.75. We'll make adjustments to our exit strategy as needed.

current Position: Long BRCD stock @ $5.25

- or -

Long 2012JAN $5.50 call (BRCD1221A5.5) Entry $0.37

12/05/11 new stop loss @ 4.98
12/03/11 new stop loss @ 4.84

Entry on November 28 at $5.25
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 8.6 million
Listed on November 26, 2011

Fuel Systems Solutions, Inc. - FSYS - close: 16.97 change: -1.25

Stop Loss: 17.65
Target(s): 20.50
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

12/08 update: Our trade on FSYS is still not open. Shares gapped open lower and then plunged to close down -6.8%. I couldn't find any news to account for the underperformance. Shares look like they are headed for the November lows near $16.40. Nimble traders may want to consider buying a dip near the $16.50 level with a tight stop loss. The newsletter is going to temporarily remove any entry point plans and we'll wait to see how FSYS performs tomorrow.

Earlier Comments:
We want to keep our position size small to limit our risk.

No Entry Point Tonight - Just Wait and Watch

Entry on December xx at $ xx.xx
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 282 thousand
Listed on December 06, 2011

iShares Gold ETF - IAU - close: 16.65 change: -0.33

Stop Loss: 16.85
Target(s): 19.75*
Current Gain/Loss: unopened
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

12/08 update: Hmm.... gold is starting to act like a "risk" asset lately with the price of gold falling as the equity market falls. That's not a good sign if you're looking at gold as a hedge against the stock market. Currently we're still sitting on the sidelines with a trigger to buy a breakout.

We are suggesting a trigger for small bullish positions at $17.25. If triggered at $17.25 we'll set our multi-week target at $19.75. The 2011 highs near $18.50 could definitely prove to be resistance. We want to keep our position size small.

Trigger @ 17.25

Suggested Position: buy the IAU @ 17.25

- or -

buy the April $18 call (IAU1221D18)

*final exit price will be adjusted as the trade progresses.

Entry on December xx at $ xx.xx
Earnings Date --/--/--
Average Daily Volume = 5.0 million
Listed on December 03, 2011

Kodiak Oil & Gas - KOG - close: 8.52 change: -0.45

Stop Loss: 8.20
Target(s): 9.45
Current Gain/Loss: +13.4%
Time Frame: two to three months
New Positions: see below

12/08 update: With the market acting weak traders were quick to lock in gains and KOG lost -5.0%. The stock has paused near short-term support at the $8.50 level. Once again I am suggesting that more conservative traders may want to exit early now to lock in a gain.

We are not suggesting new positions at this time.

current Position: Long the stock @ 7.51

12/05 KOG gapped higher at $9.13. Exit on the March $7.50 calls at $2.15 (+72%)
12/05 new stop loss @ 8.20
12/03 plan to exit our March $7.50 calls @ Monday's open (currently +60%)
12/01 Readers may want to exit now to lock in a gain (+18.3%). I am adjusting our exit target to $9.45
11/30 new stop loss @ 7.75
11/28 new stop loss @ 7.49
11/23 new stop loss @ 7.38
11/15 gap down at 7.41 and hit 7.21 before bouncing.
11/14 new stop loss @ 7.20
11/14 KOG announces plans to sell an additional 37.5 million shares of new stock
11/08 trade opened at $7.51.

Entry on November 08 at $ 7.51
Earnings Date 03/05/12 (unconfirmed)
Average Daily Volume = 6.6 million
Listed on November 5, 2011

NVIDIA Corp. - NVDA - close: 14.69 change: -0.48

Stop Loss: 14.75
Target(s): 19.50
Current Gain/Loss: unopened
Time Frame: 6 to 8 weeks, or more
New Positions: Yes, see below

12/08 update: NVDA continues to retreat and the stock is off -8% from its highs earlier in the week. We will wait to see how NVDA (and the market) performs tomorrow and then re-evaluate our strategy with NVDA.

Earlier Comments:
I am suggesting a trigger to open positions at $16.30. We want to keep our position size small because NVDA can be a volatile stock.

Trigger @ 16.30 (small positions)

Suggested Position: buy NVDA stock @ 16.30

- or -

buy the 2012Jan $17.50 call (NVDA1221A17.5)

Entry on December xx at $ xx.xx
Earnings Date 02/16/12 (unconfirmed)
Average Daily Volume = 18.5 million
Listed on December 03, 2011

Piper Jaffray Companies - PJC - close: 20.99 change: -0.96

Stop Loss: 20.75
Target(s): 25.75
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

12/08 update: Financial stocks were weak as investor fret about tomorrow's EU summit. PJC gave up -4.3%. We are still waiting for a breakout higher.

I am suggesting a trigger to open positions at $22.55, which is just above the late October highs. There is potential resistance at $24.00 but we're setting our multi-week target at $25.75. FYI: The Point & Figure chart for PJC is bullish with a $31.50 target.

I would keep position size small to limit our risk.

Trigger @ 22.55 (small positions)

Suggested Position: buy PJC stock @ $22.55

- or -

buy the Jan $22.50 call (PJC1221A22.5)

Entry on December xx at $ xx.xx
Earnings Date 01/25/12 (unconfirmed)
Average Daily Volume = 207 thousand
Listed on December 07, 2011

BEARISH Play Updates

Broadcom Corp. - BRCM - close: 29.77 change: -1.05

Stop Loss: 31.55
Target(s): 26.00
Current Gain/Loss: + 2.4%
Time Frame: 6 to 8 weeks
New Positions: see below

12/08 update: There was no follow through on BRCM's bullish reversal from yesterday. The stock spiked to $31.14 this morning and then reversed to close down -3.4%. I would consider new positions here.

Our target is $26.00 although more aggressive traders could aim lower. FYI: The Point & Figure chart for BRCM is bearish with a $21.00 target.

Suggested Position: short BRCM stock @ $30.53

- or -

Long 2012Jan $28 PUT (BRCM1221M28) Entry $0.88

12/05/11 BRCM gapped open higher at $30.53.

Entry on December 05 at $ 30.53
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 8.2 million
Listed on December 03, 2011

AT&T Inc. - T - close: 28.86 change: -0.54

Stop Loss: 30.05
Target(s): 24.25 or 22.75
Current Gain/Loss: + 1.8%
Time Frame: 6 to 9 weeks or more
New Positions: Yes, see below

12/08 update: Our new bearish play on T is off to a good start. I would still consider new positions now.

current Position: short T stock @ 29.40

- or -

Long 2012Jan $27.50 PUT (T1221M27.5) Entry $0.31

- or -

Long Mar $26 PUT (T1217O26) Entry $0.42

Entry on December 07 at $29.40
Earnings Date 01/26/12 (unconfirmed)
Average Daily Volume = 23.4 million
Listed on November 26, 2011


Expedia Inc. - EXPE - close: 28.04 change: -1.17

Stop Loss: 27.90
Target(s): 32.00
Current Gain/Loss: - 3.7%
Time Frame: 3 to 6 weeks
New Positions: see below

12/08 update: EXPE underperformed the market today thanks to an analyst downgrade. Shares closed down -4.0% yet the stock saw an intraday dip to $27.71. Our stop loss was hit at $27.90.

(Small Positions)

closed Position: long EXPE stock @ $29.00, exit $27.90 (- 3.7%)

- or -

2012Jan $30 call (EXPE1221A30) Entry 0.95 exit $0.45 (-52.6%)

12/08/11 EXPE hit our stop loss at $27.90


Entry on December 06 at $29.00
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 3.7 million
Listed on December 05, 2011

Ipath Copper ETN - JJC - close: 44.80 change: -0.90

Stop Loss: 44.75
Target(s): 48.90
Current Gain/Loss: - 1.2%
Time Frame: 4 to 8 weeks
New Positions: see below

12/08 update: Copper prices followed stocks lower and the JJC lost -1.9%. This ETF hit an intraday low of $44.73 and our stop loss happened to be $44.75.

closed Position: Long JJC (ETF) @ $45.30, exit $44.75 (-1.2%)

- or -

JAN $45 call (JJC1221A45) Entry $3.30, exit $2.15 (-34.8%)

12/08/11 stopped out at $44.75
12/03/11 new stop loss @ 44.75
11/30/11 JJC gaps higher at $45.30. Adjusting stop loss to $42.90 and moving exit target to $48.90.


Entry on November 30 at $45.30
Earnings Date --/--/-- (unconfirmed)
Average Daily Volume = 148 thousand
Listed on November 29, 2011