FWLT Starting to Move!

Take Profits Now!

By Bryan Bottarelli
Thursday, October 25, 2007 10:17 AM EDT
Thu, 25 Oct 2007 14:17:00 GMT

Dear Bottarelli Research Member,

First and foremost, I’d like to congratulate you on sticking out this volatile market. The last eight trading days (starting October 15th) have been particularly challenging, but I applaud you for sticking to your guns and trading this market in the best possible way.

I truly feel that every single one of our current positions will eventually turn a profit, so let’s continue to keep a level head and make trading decisions based on technical parameters that have a long and proven track record of success — and avoid making gut or emotion-based decisions (like we often see with the majority of investors today). Like I said, I’ve studied the charts of every position we have, and I continue to like the directional bias that we have with every one of them. Of course, we may encounter some momentary bumps in the road, but once things settle down, I think we’ll come out ahead. Case in point, check out today’s action in Foster Wheeler (FWLT – NASDAQ).

FWLT

The stock is up nearly $6.00 today, and this has pushed our FWLT November 155 Calls (UFG KK) up to a high of $7.50, which puts this position into the black. Let’s take those profits off the table now!

PLAY: Sell your FWLT November 155 Calls (UFG KK) at or above $7.20, good for the day.

Also, I’m still bullish on Freeport-McMoRan Copper & Gold (FCX – NYSE). As I mentioned earlier this week, I don’t feel that the stock was rewarded nearly enough for their latest earnings report, so we should have another upside push on the horizon. The FCX November 115 Calls (FCX KC) that we’re holding with a $4.77 break-even point have traded as high as $4.50 today, so we’re just about to break into the black on this one as well. Hold for more gains.

FCX

I’m also willing to give Mastercard (MA – NYSE) the time it needs to fully establish its support level, so let’s continue holding the MA November 155 Calls (MAL KK).

MA

And just to be protected against another sudden downside move, let’s also maintain our put plays on United States Steel (X – NYSE) and Bear Stearns Companies (BSC – NYSE).If it’s time to make any further moves on any of these positions, you’ll be the first to know. Until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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