Call It a Week

Target RIG and FDG For Next Week

By Bryan Bottarelli
Friday, May 09, 2008 3:01 PM EDT
Fri, 9 May 2008 19:01:00 GMT

Dear Bottarelli Research Member,

The Dow opened the session down 117 points right out of the gate, and not much has changed over the last five hours. Despite the fact that oil and gold are each trading higher, it seems like every stock across the board is trading in the red today, even the metals, energy, and oil service plays (which typically rally as gold and oil prices move higher). It looks like hedge fund managers are simply taking their April profits off the table in every sector — and therefore I’d like to call if a week and patiently watch the last hour of trading from the sidelines.

The only strong stock on my screen today is Fording Coal (FDG – NYSE) which hit a new 52-week high and maintained these gains throughout the session. Going into next week, this could offer us a nice upside breakout call play.

FDG

Also showing an interesting tick today is Transocean (RIG – NYSE). While RIG’s counterparts (like DO and WFT) are trading higher today, RIG is experiencing a large downside move. If shares hit their 50-day moving average around the $145.00 level, I think we’ll have another strong call buying opportunity, so I’ll keep a close eye on this one for a potential play early next week as well.

RIG

Until then, let’s close it down and call it s week. Have an enjoyable weekend, and we’ll be in touch for another exciting week of trading next Monday. And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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