PCU Follow-Up

$3.20 Triggers this Morning

By Bryan Bottarelli
Thursday, December 28, 2006 10:02 AM EST
Thu, 28 Dec 2006 15:02:00 GMT

Dear Bottarelli Research Member,

I received a few e-mails from charter members saying that their $3.20 sell price on the PCU February 55 Calls (PCU BK) did not trigger yesterday. If this situation ever arises, then maintain your sell orders into the open of trading the next day – and you’ll most likely get your sell price. Take this morning, for example. After 15 minutes of trading, the PCU February 55 Calls (PCU BK) were priced between $3.20 and $3.30, so anyone who wasn’t able to sell for $3.20 yesterday should have certainly got filled at the open of trading today.

PCU

In terms of the PCU chart, I still like the upside potential of the stock going into February – which means we could very well re-enter the same February 55 Calls on any dips. But tactically speaking, right now is not the best time to enter any new trades. You see, I expect today and tomorrow to be very low-volume days as traders leave the floor in preparation for the New Years holiday. Then on Monday, the market is closed for New Years Day – and there are even rumors floating around that the markets will also be closed on Tuesday in observation of President Ford’s funeral. As a result, any trades that we enter today will most likely be much cheaper come Wednesday of next week. So the smart thing to do is close down our trading for 2006 – and scout out the best new trading opportunities to open come next week.

As you know, some of the names topping my list are Allergan (AGN – NYSE), the maker of botox, Cameco (CCJ – NYSE) and BHP Billiton (BHP – NYSE) as pure uranium plays, Norfolk Southern (NSC – NYSE) as a bearish play in the transport sector, and Apple Computer (AAPL – NASDAQ), which was able to turn their opening-session loss of $4.00 into an end-of-the-day gain – which actually strengthened by support level argument that I highlighted in a past alert. Today AAPL is back down another $1.80, so the extreme volatility continues.

Another name I’d like to add to the 2007 watch list is CNOOC (CEO – NYSE). CNOOC engages in the exploration, development, and production of crude oil, natural gas, and other petroleum products in China — and as you can see by the chart — the stock just shot up to a new 52-week high. As we head into 2007, this could serve as a great 2-3 month upside call play. So stay tuned!

CEO

As always, I’ll continue to scour the market for the best trading opportunities — but tactically speaking, I don’t expect any further trades until 2007. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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