Capping Off the Week

Plus: Your Last and Final Special Offer Reminder

By Bryan Bottarelli
Friday, July 13, 2007 12:14 PM EDT
Fri, 13 Jul 2007 16:14:00 GMT

Dear Bottarelli Research Member,

What an incredible week of trading! Over the last five trading days, we’ve witnessed the Dow sell off 148-points, which was one of the largest sell-offs of the year. And in the same week, we also witnessed the Dow rally 282 points, which was one of the largest rallies of the last five years. And through it all, we used this incredible volatility to successfully trade CAT, VLO, ICE, MA, and CMG, improving our recent track to winners on 29 out of our last 31 plays. So take a moment to pat yourself on the back for a job well done. Great “lock and load” trading, my friend!

Now let’s get into today’s action. As you can clearly see from the Dow chart below, the Double-Bottom versus Triple-Top battle that I’ve been commenting on for weeks has now made a decisive move. Yesterday’s 282-point rally has officially busted the Dow above the recent Triple-Top formation, which means the bulls are still in control of this market. Therefore, I’ll continue to bias our trading positions to the upside.

INDU

One stock in particular that we could play early next week is McDermott International (MDR – NYSE).They’re involved in the heavy construction industry — providing offshore oil and gas construction along with various governmental services like including uranium processing and environmental site restoration. I’m sure you know that heavy machinery stocks have been on fire lately, and the chart indicates that MDR could be on the verge of making its next upside push very soon. While I don’t typically like to enter new options plays on Friday (due to the pending weekend of time decay, and especially on Friday the 13th!), let’s keep an eye on MDR. Come next Monday, the August calls could be “in play.”

MDR

Looking at our current positions, I’m still comfortable holding Tesoro (TSO – NYSE), especially with oil once again making a run at $73.50 per barrel. While I do admit that the stock has been stubborn lately, the August expiration will certainly help us out. If TSO can pop above the 50-day moving average (and recent price history tells us that it very well should), then we’ll be in prime position for another great winner. Therefore, hold your TSO August 62.5 Calls (TSO HU).

TSO

I’m also comfortable holding our position in The J. M. Smucker Company (SJM – NYSE).As you can see by the chart, yesterday’s massive rally did little to break the stock above its recently-set ceiling at $64.00, so I still think the downside should be the stronger bias on this one. Continue to hold your SJM August 65 Puts (SJM TM).

SJM

On that note, have a good weekend, and I look forward to another great week of trading next week! But before I go, don’t miss out on our special membership extension. If you have yet to lock in this rate, this will be your last and final opportunity, so don’t miss it!

*YOUR ABSOLUTE LAST CHANCE! This will be your last and final opportunity to take advantage of our special 9-month membership extension. This offer officially expires this Sunday, so this will be the last reminder notice that you’ll ever receive. If you’ve enjoyed our latest 29 out of 31 winning streak, and you want to lock in the best membership prices we’ve offered all year, then use your email and password to log in and access the special renewal page now! This will be the last reminder note you’ll ever receive, so act now while it’s fresh in your mind.

https://www.bottarelliresearch.com/renew/?service=opt&offer=37Z5Q8W462

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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