EOT Position Update – November 25, 2009

November 25, 2009

Market Snapshot

Happy Thanksgiving!

It’s a shortened trading week for the Thanksgiving holiday.  I hope you’re able to enjoy the time off with friends and family.  I know I’m looking forward to eating way too much and watching some football!

As usual, short weeks lead to low trading volumes.  So don’t read too much into any price movements this week.

We have a bit of good news from the economic data.  Most notable, the unemployment picture continues to improve and personal spending has risen for two consecutive months.  That’s great news for our view of continued economic recovery!

Now for the updates…

Position Updates

Just a quick note:  Remember, we won’t update every open position every week.  I try to focus on the positions that have some significant news or price movement.

  SBUX Apr 2010 $22 CALLS (SSUDV)
SBUX is a new trade we sent out yesterday.  Check out the trade alert or the website for more details.  Resistance is at $23.50 and $26.  Support is at $18.50 and $17.

  VIT Feb 2010 $17.50 CALLS (VITBW)
The market’s ho-hum reaction to VIT’s stellar quarterly earnings report was a bit disappointing.  There were clearly some investors expecting even better results.  I was particularly impressed by VIT’s expansion of their China-based business.  As economic recovery spurs more R&D work in developed countries, VIT should see a rebound in revenue from US and European partners.  Hold tight for now.  Resistance is at $21 and $22.50.  Support is at $14.50 and $12.65.

  MOT Apr 2010 $10 CALLS (MOTDB)
Speculation about MOT selling their Home and Network Mobility segment could be weighing on investors’ minds.  Will they sell or won’t they?  It’s still uncertain.  And markets hate uncertainty… Once the sale resolves itself either way, we should see shares start heading higher again.  Hold tight for now.  Resistance is at $10 and $12. Support is at $7.75 and $7.

  MCRS Mar 2010 $30 CALLS (MFKCF)
The nice two week rally in MCRS shares cooled off this week.  The company is well positioned as the leader in the hotel and retail sectors.  Any good news for those industries should spark a rally in MCRS’s stock.  We still have plenty of time, hold tight for now.  Resistance is at $30.50 and $33.  Support is at $25 and $22.50.

  MMM Jan 2010 $75 CALLS (MMMAO)
3M continues riding support of its uptrend higher.  It should continue to rally into the end of the year along with the rest of the market.  Aggressive traders should hold out for the next leg higher.  The next resistance is at $80.  Support is at $65 and $60.

Category: EOT Update