Correction

JOE Unfortunately Stopped

By Bryan Bottarelli
Friday, September 29, 2006 2:23 PM EST
Fri, 29 Sep 2006 19:23:00 GMT

Dear Bottarelli Research Member,

In my haste to bash the homebuilder longs, I mistakenly overlooked the fact that the JOE October 55 Puts (JOE VK) hit our adjusted stop loss of $2.70. I find this rather unfortunate because as soon as the markets begin their sell-off (which could happen as early as next week), I think we’ll witness broad-based weakness in the homebuilding sector that could push JOE back to at least $51.00 a share.

JOE

Quite frankly, the recent pop will be seen as an opportunistic chance to short the companies once again. Perhaps I was too early to the party, but I wanted to be sure that we all participated in the coming weakness. Maybe we’ll get a second opportunity once we begin to witness the selling pressure in October, but for now, we must adhere to our trading rules and call the position closed. Not to worry, there’s a very good chance that we’ll make up for this loss once the homebuilder sector begins falling.

Until next week,

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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