Add AGU and X Calls

Plus, Maintain AMGN and DUG

By Bryan Bottarelli
Wednesday, December 17, 2008 12:43 PM EST
Wed, 17 Dec 2008 17:43:00 GMT

PLAY: Buy the AGU January 35 Calls (AGU AG) at or under $3.00, good for the day. Place a protective stop limit at $1.40 and place a pre-determined sniper sell at $5.00.

PLAY: Buy the X January 45 Calls (X AX) at or under $3.70, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.50.

Dear Bottarelli Research Member,

I’m not going to lie: We’ve got a really, really strange market right now.

First off, the Fed comes out yesterday and basically concedes that they will continue spending unfathomable amounts of dollars to stem the financial and economic crisis — and the market responds with a major end-of-day rally. Then today, OPEC announces a 4.2 million barrel per day cut (in an effort to raise oil prices) but oil continues moving down. And on top of all this, we’re dealing with the biggest financial fraud cases in history. In response to all of this, the Dow has made an attempt to break the 9,000 level. Check it out:

INDU

What’s my take? Well, quite simply, I feel that nobody knows anything right now. For this very reason, I want us all to remain positioned on both sides of the market. As it stands now, we’re holding the DUG January 31 Calls (DZG AE) and the AMGN January 60 Calls (YAA AL).Looking at DUG, I continue to feel that we could see a substantial pop at any time. Therefore, maintain your calls.

DUG

Looking at Amgen, we’ve now broken into profitability on our calls, so maintain this position as well.

AMGN

In terms of new trades, I’d like to ride the stock sectors that have been experiencing the most momentum lately, and that brings us to the fertilizer and steel names. As you know, we played MOS calls recently — and we experienced some initial volatility. As a result, we had to close this play out. But I received numerous e-mails from members who held onto the calls, and as you can see below, MOS has in fact rallied, as I expected. For those to held the calls, nice trading!

MOS

In an effort to ride this trend, I think we have an opportunity in shares of Agrium (AGU – NYSE). Similar to POT and MOS, AGU produces agricultural nutrients and industrial products worldwide. And if shares follow the pattern of POT and MOS, they’ll break aggressively past the 50-day moving average (which has just began recently). Therefore, I’d like to carefully add AGU calls to our ledger to further take advantage of this upside momentum.

AGU

PLAY: Buy the AGU January 35 Calls (AGU AG) at or under $3.00, good for the day. Place a protective stop limit at $1.40 and place a pre-determined sniper sell at $5.00.

At the same time, I’m also liking the current chart formation in U.S. Steel (X – NYSE). As you can see below, X has broken through its 50-day moving average, and toady’s up-tick points to continued upside movement going forward. In addition to our AGU play, let’s ride this momentum trade as well.

X

PLAY: Buy the X January 45 Calls (X AX) at or under $3.70, good for the day. Place a protective stop limit at $2.10 and a pre-determined sniper sell at $5.50.

Also, I hope that you’re enjoying the recent blast-off in many of the picks contained in my special report, “The 5 Best Stocks Under $5.00.” As you can see below, AKS, DRYS, and SLW have all exploded higher, so be sure to lock in profits as these companies continue to advance.

AKS

DRYS

SLW

And finally, if you haven’t already done so, be sure to take advantage of our special “End of Year” renewal offer. You only have 48 hours left to lock in this reduced-rate, so act now!

https://www.bottarelliresearch.com/renew/?service=opt&offer=312SDD28I6

And as always…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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