One New Upside Play

Play CMI Calls Now

By Bryan Bottarelli
Tuesday, October 02, 2007 3:00 PM EDT
Tue, 2 Oct 2007 19:00:00 GMT

Dear Bottarelli Research Member,

We have a number of tempting set-ups which I’ll get into momentarily. But first, I’d like to initiate a new upside play on Cummins (CMI – NYSE).

As you can see by the chart below, the global engine manufacturer looks poised to make a decisive run at its latest 52-week high above the $140.00 level, especially leading up to their October 25th earnings announcement. I’d like to participate in any forthcoming upside using October calls, so here’s the play:

CMI

PLAY: Buy the CMI October 140 Calls (CDM JH) at or under $3.30, good for the day. Current bid/ask spread is $2.90 to $3.20. Place a protective stop limit at $1.80.

Also looking attractive is the parabolic move of Las Vegas Sands (LVS — NYSE). As amazing as it sounds, the chart below indicates that the stock looks positioned to move even higher, so I’ll continue to monitor LVS for an attractive entry opportunity.

LVS

Along those same lines, we could have an even better opportunity in shares of MGM Mirage (MGM – NYSE). While LVS and WYNN have gathered all the attention, MGM has continued to quietly move higher in the background — and this could set up a very nice “catch up” rally in MGM shares. Let’s keep an eye on this one for a call entry as well.

MGM

Also catching my eye is Ctrip International (CTRP – NASDAQ).As you can see below,the stockis setting a new 52-week high as we speak, and they could continue to attract momentum players as we get closer and closer to the 2008 summer Olympic games.

CTRP

We also have shares of Garmin (GRMN – NASDAQ) touching their 50-day moving average right at the $100.00 level. If the stock establishes support here, you can expect a very nice call opportunity.

GRMN

And finally, let’s certainly not forget about DryShips (DRYS – NASDAQ), which has once again turned an intra-day loss into a new 52-week high.

DRYS

The moment it’s time to strike on any of these call opportunities, you’ll be the first to know. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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