Russell Reconstitution 2010 Entire List of Changes

Hey guys sorry it's been a while since I've posted anything. I have been extremely busy. Here is a (long) list of companies which were rebalanced during the Russell Reconstitution yesterday. I have split the list into two categories; additions and deletions from the index. If you were wondering about the huge volume spike on these names, this will explain it.

Added to the Index

Company	Symbol	Sector
1ST UNITED BANCORP INC	FUBC	Financial Services
A H BELO CORP	AHC	Consumer Discretionary
ABRAXAS PETE CORP	AXAS	Energy
ACCENTURE PLC IRELAND	ACN	Producer Durables
ACCRETIVE HEALTH INC	AH	Health Care
ACE LTD	ACE	Financial Services
ALCON INC	ACL	Health Care
ALEXZA PHARMACEUTICALS	ALXA	Health Care
ALIMERA SCIENCES INC	ALIM	Health Care
ALPHA & OMEGA SEMICON	AOSL	Technology
AMERICAN DG ENERGY INC	ADGE	Utilities
AMERICAN OIL & GAS INC	AEZ	Energy
ANTARES PHARMA INC	AIS	Health Care
ANTHERA PHARMACEUTICALS	ANTH	Health Care
AOXING PHARMACEUTICAL CO	AXN	Health Care
APPLIED ENERGETICS INC	AERG	Producer Durables
ARCTIC CAT INC	ACAT	Consumer Discretionary
ARLINGTON ASSET INVT	AI	Financial Services
ARTHROCARE CORP	ARTC	Health Care
ASPEN TECHNOLOGY INC	AZPN	Technology
ASPENBIO PHARMA INC	APPY	Health Care
ASTA FDG INC	ASFI	Financial Services
AVAGO TECHNOLOGIES LTD	AVGO	Technology
AVEO PHARMACEUTICALS INC	AVEO	Health Care
AXCELIS TECHNOLOGIES INC	ACLS	Technology
AXT INC	AXTI	Technology
BALLANTYNE STRONG INC	BTN	Producer Durables
BALTIC TRADING LIMITED	BALT	Producer Durables
BARRY R G CORP OHIO	DFZ	Consumer Discretionary
BEASLEY BROADCAST GROUP	BBGI	Consumer Discretionary
BELL MICROPRODUCTS INC	BELM	Technology
BERKSHIRE HATHAWAY INC	BRK.B	Financial Services
BIOSANTE PHARMACEUTICALS	BPAX	Health Care
BIOTIME INC	BTIM	Health Care
BOFI HLDG INC	BOFI	Financial Services
BON-TON STORES INC	BONT	Consumer Discretionary
BRIDGFORD FOODS CORP	BRID	Consumer Staples
CALIPER LIFE SCIENCES	CALP	Health Care
CALIX INC	CALX	Technology
CALLON PETROLEUM CO	CPE	Energy
CAMAC ENERGY INC	CAK	Energy
CAMBIUM LEARNING GRP INC	ABCD	Consumer Discretionary
CAPITAL GOLD CORP	CGC	Materials & Processing
CAPSTONE TURBINE CORP	CPST	Energy
CASELLA WASTE SYSTEMS	CWST	Consumer Discretionary
CASUAL MALE RETAIL GROUP	CMRG	Consumer Discretionary
CDC CORP	CHINA	Technology
CENTER FINANCIAL CORP	CLFC	Financial Services
CERUS CORP	CERS	Health Care
CHATHAM LODGING TR	CLDT	Financial Services
CHICAGO BRIDGE & IRON	CBI	Producer Durables
CIT GROUP INC	CIT	Financial Services
CNH GLOBAL N V	CNH	Producer Durables
CODEXIS INC	CDXS	Health Care
COLEMAN CABLE INC	CCIX	Producer Durables
COMBINATORX INC	CRXX	Health Care
COMMERCIAL VEH GROUP INC	CVGI	Producer Durables
COMPX INTERNATIONAL	CIX	Materials & Processing
CONEXANT SYSTEMS INC	CNXT	Technology
CONVIO INC	CNVO	Technology
COOPER INDUSTRIES PLC	CBE	Producer Durables
CORCEPT THERAPEUTICS INC	CORT	Health Care
CORE LABORATORIES N V	CLB	Energy
COVIDIEN PLC	COV	Health Care
CULP INC	CFI	Materials & Processing
CUMULUS MEDIA INC	CMLS	Consumer Discretionary
CYTRX CORP	CYTR	Health Care
DELTA APPAREL INC	DLA	Consumer Discretionary
DEX ONE CORP	DEXO	Consumer Discretionary
DIGIMARC CORPORATION	DMRC	Technology
DISCOVERY COMMUNICATNS	DISCA	Consumer Discretionary
DOUGLAS DYNAMICS INC	PLOW	Producer Durables
DYNAVAX TECHNOLOGIES	DVAX	Health Care
DYNAVOX INC	DVOX	Technology
EMPIRE RESORTS INC	NYNY	Consumer Discretionary
ENCORE BANCSHARES INC	EBTX	Financial Services
ENERGY PARTNERS LTD	EPL	Energy
ENERGY XXI (BERMUDA) LTD	EXXI	Energy
ENTERCOM COMMUNICATIONS	ETM	Consumer Discretionary
ENTRAVISION COMM	EVC	Consumer Discretionary
EURAND N V	EURX	Health Care
EVOLUTION PETROLEUM CORP	EPM	Energy
EXACT SCIENCES CORP	EXAS	Health Care
EXCEL MARITIME CARRIERS	EXM	Producer Durables
EXCEL TR INC	EXL	Financial Services
EXPRESS INC	EXPR	Consumer Discretionary
FEDERAL AGRIC MTG CO	AGM	Financial Services
FIBERTOWER CORP	FTWR	Utilities
FINANCIAL ENGINES INC	FNGN	Financial Services
FINISAR CORP	FNSR	Technology
FIRST INTST BANCSYSTEM	FIBK	Financial Services
FIVE STAR QUALITY CARE	FVE	Health Care
FSI INTL INC	FSII	Technology
GASTAR EXPL LTD	GST	Energy
GENERAL GROWTH PPTYS INC	GGP	Financial Services
GEORGIA GULF CORP	GGC	Materials & Processing
GERBER SCIENTIFIC INC	GRB	Producer Durables
GERDAU AMERISTEEL CORP	GNA	Materials & Processing
GEROVA FINANCIAL GROUP	GFC	Financial Services
GLOBAL GEOPHYSICAL SVCS	GGS	Energy
GLOBALSTAR INC	GSAT	Utilities
GLOBE SPECIALTY METALS	GSM	Materials & Processing
GOLDEN STAR RES LTD CDA	GSS	Materials & Processing
GOLUB CAP BDC INC	GBDC	Financial Services
GRAY TELEVISION INC	GTN	Consumer Discretionary
GREEN BANKSHARES INC	GRNB	Financial Services
GUIDANCE SOFTWARE INC	GUID	Technology
HALLADOR ENERGY CO	HNRG	Energy
HANMI FINANCIAL CORP	HAFC	Financial Services
HEALTHTRONICS INC	HTRN	Health Care
HFF INC	HF	Financial Services
HOKU CORPORATION	HOKU	Energy
HOUSTON AMERICAN ENERGY	HUSA	Energy
HUDSON HIGHLAND GROUP	HHGP	Producer Durables
HUDSON VALLEY HOLDING	HUVL	Financial Services
HUTCHINSON TECHNOLOGY	HTCH	Technology
HYPERCOM CORP	HYC	Technology
ICO GLOBAL COMM HLDGS	ICOG	Utilities
IDT CORP	IDT	Utilities
IKANOS COMMUNICATIONS	IKAN	Technology
INGERSOLL-RAND PLC	IR	Producer Durables
INHIBITEX INC	INHX	Health Care
INOVIO PHARMACEUTICALS	INO	Health Care
INTEGRATED SILICON S	ISSI	Technology
IRIDIUM COMMUNICATIONS	IRDM	Utilities
JAGUAR MNG INC	JAG	Materials & Processing
JAMBA INC	JMBA	Consumer Discretionary
JAZZ PHARMACEUTICALS INC	JAZZ	Health Care
JOES JEANS INC	JOEZ	Consumer Discretionary
JOHNSON OUTDOORS INC	JOUT	Consumer Discretionary
KEITHLEY INSTRS INC	KEI	Producer Durables
KENNEDY-WILSON HLDGS INC	KW	Financial Services
KERYX BIOPHARMACEUTICALS	KERX	Health Care
KID BRANDS INC	KID	Consumer Discretionary
KIT DIGITAL INC	KITD	Technology
KMG CHEMICALS INC	KMGB	Materials & Processing
KODIAK OIL & GAS CORP	KOG	Energy
KRATOS DEFENSE & SEC SOL	KTOS	Producer Durables
L & L ENERGY INC	LLEN	Energy
LACROSSE FOOTWEAR INC	BOOT	Consumer Discretionary
LADENBURG THALMAN FIN	LTS	Financial Services
LEAR CORP	LEA	Consumer Discretionary
LECG CORP	XPRT	Producer Durables
LEE ENTERPRISES INC	LEE	Consumer Discretionary
LIBBEY INC	LBY	Consumer Discretionary
LIFETIME BRANDS INC	LCUT	Consumer Discretionary
LIMONEIRA CO	LMNR	Consumer Staples
LIONS GATE ENTMNT CORP	LGF	Consumer Discretionary
LOCAL COM CORP	LOCM	Technology
LTX-CREDENCE CORP	LTXC	Technology
LYDALL INC	LDL	Producer Durables
MAGMA DESIGN AUTOMATION	LAVA	Technology
MAGNUM HUNTER RES CORP	MHR	Energy
MARINEMAX INC	HZO	Consumer Discretionary
MARLIN BUSINESS SVCS	MRLN	Producer Durables
MATTSON TECHNOLOGY INC	MTSN	Technology
MAXLINEAR INC	MXL	Technology
MCCLATCHY CO	MNI	Consumer Discretionary
MEDIA GENERAL INC	MEG	Consumer Discretionary
MERU NETWORKS INC	MERU	Technology
METALS USA HLDGS CORP	MUSA	Materials & Processing
MGP INGREDIENTS INC	MGPI	Consumer Staples
MIDWESTONE FINL GROUP	MOFG	Financial Services
MILLER PETE INC	MILL	Energy
MINDSPEED TECHNOLOGIES	MSPD	Technology
MOSYS INC	MOSY	Technology
MPG OFFICE TRUST INC	MPG	Financial Services
NANOMETRICS INC	NANO	Technology
NATIONAL AMERN UNIV	NAUH	Consumer Discretionary
NATURES SUNSHINE PRODS	NATR	Consumer Staples
NEOSTEM INC	NBS	Health Care
NETWORK ENGINES INC	NENG	Technology
NEURALSTEM INC	CUR	Health Care
NEWCASTLE INVT CORP	NCT	Financial Services
NEXSTAR BROADCASTING GRP	NXST	Consumer Discretionary
NORANDA ALUM HLDG CORP	NOR	Materials & Processing
NYMOX PHARMACEUTICAL	NYMX	Health Care
OCCAM NETWORKS INC	OCNW	Technology
OCLARO INC	OCLR	Technology
ONE LIBERTY PROPERTIES	OLP	Financial Services
P A M TRANSN SVCS INC	PTSI	Producer Durables
PARK OHIO HOLDINGS CORP	PKOH	Producer Durables
PDF SOLUTIONS INC	PDFS	Technology
PDI INC	PDII	Producer Durables
PEREGRINE PHARMA INC	PPHM	Health Care
PGT INC	PGTI	Materials & Processing
PHARMACYCLICS INC	PCYC	Health Care
PILGRIMS PRIDE CORP NEW	PPC	Consumer Staples
PINNACLE AIRL CORP	PNCL	Producer Durables
PRESSTEK INC	PRST	Producer Durables
PRIMERICA INC	PRI	Financial Services
PROSPECT MEDICAL HLDGS	PZZ	Health Care
PURE BIOSCIENCE	PURE	Health Care
QUALITY DISTRIBUTION INC	QLTY	Producer Durables
RADIO ONE INC	ROIAK	Consumer Discretionary
RAM ENERGY RESOURCES INC	RAME	Energy
REACHLOCAL INC	RLOC	Consumer Discretionary
RENTECH INC	RTK	Materials & Processing
RESOLUTE ENERGY CORP	REN	Energy
RETAIL OPPORTUNITY INVTS	ROIC	Financial Services
RICHARDSON ELECTRONICS	RELL	Technology
ROADRUNNER TRNSN SVCS	RRTS	Producer Durables
RODMAN & RENSHAW CAP GP	RODM	Financial Services
RURAL/METRO CORP	RURL	Health Care
SANFILIPPO JOHN B & SON	JBSS	Consumer Staples
SANMINA SCI CORP	SANM	Technology
SCORPIO TANKERS INC	STNG	Producer Durables
SELECT COMFORT CORP	SCSS	Consumer Discretionary
SENOMYX INC	SNMX	Materials & Processing
SENORX INC	SENO	Health Care
SHILOH INDUSTRIES INC	SHLO	Materials & Processing
SIRIUS XM RADIO INC	SIRI	Consumer Discretionary
SOLTA MEDICAL INC	SLTM	Health Care
SOMAXON PHARMACEUTICALS	SOMX	Health Care
SONIC SOLUTIONS	SNIC	Technology
SPANSION INC	CODE	Technology
SPECTRUM BRANDS HOLDINGS	SPB	Consumer Staples
SPS COMM INC	SPSC	Technology
SS&C TECHNOLOGIES HLDGS	SSNC	Technology
STAAR SURGICAL CO	STAA	Health Care
STREAM GLOBAL SVCS INC	SGS	Producer Durables
SUMMER INFANT INC	SUMR	Consumer Discretionary
SUPERMEDIA INC	SPMD	Consumer Discretionary
SXC HEALTH SOLUTIONS	SXCI	Health Care
SYNERON MEDICAL LTD	ELOS	Health Care
TARGACEPT INC	TRGT	Health Care
TAYLOR CAPITAL GROUP INC	TAYC	Financial Services
TELENAV INC	TNAV	Technology
TESCO CORP	TESO	Energy
TESSCO TECHNOLOGIES INC	TESS	Technology
THERMADYNE HLDGS CORP	THMD	Producer Durables
THL CR INC	TCRD	Financial Services
THOMAS PROPERTIES GROUP	TPGI	Financial Services
THOMPSON CREEK METALS	TC	Materials & Processing
THOMSON REUTERS CORP	TRI	Financial Services
TPC GROUP INC	TPCG	Materials & Processing
TRANSATLANTIC PETROLEUM	TAT	Energy
TRANSCEPT PHARM INC	TSPT	Health Care
TWO HBRS INVT CORP	TWO	Financial Services
TYCO INTERNATIONAL LTD	TYC	Producer Durables
U S ENERGY CORP	USEG	Materials & Processing
ULTRA CLEAN HOLDINGS INC	UCTT	Technology
ULTRA PETROLEUM CORP	UPL	Energy
UNILIFE CORP NEW	UNIS	Health Care
UQM TECHNOLOGIES INC	UQM	Producer Durables
VERSO PAPER CORP	VRS	Materials & Processing
VIASYSTEMS GROUP INC	VIAS	Technology
VIRGINIA COMM BANCORP	VCBI	Financial Services
VIRNETX HOLDING CORP	VHC	Technology
VISTAPRINT N V	VPRT	Consumer Discretionary
VONAGE HLDGS CORP	VG	Utilities
WABASH NATIONAL CORP	WNC	Producer Durables
WARNER CHILCOTT PLC	WCRX	Health Care
WAVE SYSTEMS CORP	WAVX	Technology
WEATHERFORD INTL	WFT	Energy
WEST COAST BANCORP	WCBO	Financial Services
WESTWOOD ONE INC	WWON	Consumer Discretionary
WINMARK CORP	WINA	Consumer Discretionary
XERIUM TECHNOLOGIES INC	XRM	Producer Durables
XYRATEX LTD	XRTX	Technology
ZIOPHARM ONCOLOGY INC	ZIOP	Health Care

Deleted from the index

Company	Symbol	Sector
ACTIVIDENTITY CORP	ACTI	Technology
ADOLOR CORP	ADLR	Health Care
AGFEED INDUSTRIES INC	FEED	Consumer Staples
AMERICAN CARESOURCE HLDG	ANCI	Health Care
AMERICAN DAIRY INC	ADY	Consumer Staples
AMERICAN ORIENTAL BIOENG	AOB	Health Care
AMERICAN REALTY INVESTOR	ARL	Financial Services
AMICUS THERAPEUTICS INC	FOLD	Health Care
AMPAL AMERICAN ISRAEL	AMPL	Financial Services
AMREP CORP	AXR	Consumer Discretionary
ARYX THERAPEUTICS INC	ARYX	Health Care
ASCENT SOLAR TECH INC	ASTI	Energy
ASIAINFO HOLDINGS INC	ASIA	Technology
AUBURN NATL BANCORP	AUBN	Financial Services
BANK KY FINL CORP	BKYF	Financial Services
BANNER CORP	BANR	Financial Services
BAR HBR BANKSHARES	BHB	Financial Services
BENIHANA INC	BNHNA	Consumer Discretionary
BIODELIVERY SCIENCES	BDSI	Health Care
BOLT TECHNOLOGY CORP	BOLT	Energy
BOVIE MEDICAL CORP	BVX	Health Care
BRONCO DRILLING CO INC	BRNC	Energy
BROOKLYN FEDERAL BANCORP	BFSB	Financial Services
CALLIDUS SOFTWARE INC	CALD	Technology
CAPE BANCORP INC	CBNJ	Financial Services
CARDIAC SCIENCE CORP	CSCX	Health Care
CARDIOVASCULAR SYS INC	CSII	Health Care
CARDIUM THERAPEUTICS INC	CXM	Health Care
CELL THERAPEUTICS INC	CTIC	Health Care
CENTER BANCORP INC	CNBC	Financial Services
CENTRAL PACIFIC FINL	CPF	Financial Services
CHASE CORP	CCF	Materials & Processing
CHEVIOT FINANCIAL CORP	CHEV	Financial Services
CHICOPEE BANCORP INC	CBNK	Financial Services
CHINA AUTOMOTIVE SYSTEMS	CAAS	Consumer Discretionary
CHINA BAK BATTERY INC	CBAK	Producer Durables
CHINA FIRE & SEC GROUP	CFSG	Producer Durables
CHINA GREEN AGRICULTURE	CGA	Consumer Staples
CHINA HOUSING & LAND DEV	CHLN	Financial Services
CHINA INFORMATION SEC	CPBY	Technology
CHINA PRECISION STEEL	CPSL	Materials & Processing
CHINA SEC & SURVE TECH	CSR	Producer Durables
CHINA SKY ONE MED INC	CSKI	Health Care
CHINA TRANSINFO TECHNLGY	CTFO	Technology
CHINA-BIOTICS INC	CHBT	Consumer Staples
CHINACAST EDU CORP	CAST	Consumer Discretionary
CITIZENS HLDG CO MISS	CIZN	Financial Services
COGO GROUP INC	COGO	Technology
COMMUNICATIONS SYSTEMS	JCS	Technology
CREDO PETROLEUM CORP	CRED	Energy
CTC MEDIA INC	CTCM	Consumer Discretionary
CUBIC ENERGY INC	QBC	Energy
DISCOVERY COMMUNICATIONS	DISCK	Consumer Discretionary
DISCOVERY LABORATORIES	DSCO	Health Care
DOVER DOWNS GAMING & ENT	DDE	Consumer Discretionary
DUOYUAN PRINTING INC	DYP	Producer Durables
DYNAMICS RESEARCH CORP	DRCO	Technology
EASTERN CO	EML	Materials & Processing
EASTERN INSURANCE HLDGS	EIHI	Financial Services
ELOYALTY CORP	ELOY	Technology
EMCORE CORP	EMKR	Technology
ENGLOBAL CORP	ENG	Producer Durables
ENTEROMEDICS INC	ETRM	Health Care
ENTERPRISE BANCORP INC	EBTC	Financial Services
EVERGREEN ENERGY INC	EEE	Energy
FARMERS CAPITAL BK CORP	FFKT	Financial Services
FIRST ACCEPTANCE CORP	FAC	Financial Services
FIRST CALIFORNIA FINL GR	FCAL	Financial Services
FIRST DEFIANCE FINANCIAL	FDEF	Financial Services
FIRST FINL NORTHWEST	FFNW	Financial Services
FIRST FINL SVC CORP	FFKY	Financial Services
FRISCHS RESTAURANTS INC	FRS	Consumer Discretionary
FUQI INTERNATIONAL INC	FUQI	Consumer Discretionary
FUSHI COPPERWELD INC	FSIN	Materials & Processing
GENERAL STEEL HOLDINGS	GSI	Materials & Processing
GEOKINETICS INC	GOK	Energy
GRAMERCY CAPITAL CORP	GKK	Financial Services
GRAN TIERRA ENERGY INC	GTE	Energy
GREAT WOLF RESORTS INC	WOLF	Consumer Discretionary
GSE SYS INC	GVP	Technology
GTX INC	GTXI	Health Care
GUARANTY BANCORP	GBNK	Financial Services
HAMPTON ROADS BANKSHARES	HMPR	Financial Services
HARBIN ELECTRIC INC	HRBN	Producer Durables
HARVARD BIOSCIENCE INC	HBIO	Health Care
HEMISPHERX BIOPHARMA INC	HEB	Health Care
HERITAGE CRYL CLEAN INC	HCCI	Producer Durables
HICKORY TECH CORP	HTCO	Utilities
HQ SUSTAINABLE MARITIM	HQS	Consumer Staples
HURCO COMPANIES INC	HURC	Producer Durables
IDERA PHARMACEUTICALS	IDRA	Health Care
IMERGENT INC	IIG	Technology
INCONTACT INC	SAAS	Utilities
INDEPENDENCE HOLDING CO	IHC	Financial Services
INFORMATION SERVICES GRP	III	Financial Services
INNODATA ISOGEN INC	INOD	Producer Durables
INNOSPEC INC	IOSP	Materials & Processing
INSMED INC	INSM	Health Care
INTEGRATED ELECTRICAL SV	IESC	Producer Durables
IPASS INC	IPAS	Consumer Discretionary
ISTA PHARMACEUTICALS INC	ISTA	Health Care
JACKSON HEWITT TAX SVC	JTX	Consumer Discretionary
JAVELIN PHARMACEUTICALS	JAV	Health Care
K V PHARMACEUTICAL CO	KV.A	Health Care
KENTUCKY FIRST FEDERAL	KFFB	Financial Services
KOHLBERG CAPITAL CORP	KCAP	Financial Services
LAKES ENTERTAINMENT INC	LACO	Consumer Discretionary
LEGACY BANCORP INC	LEGC	Financial Services
LIHUA INTERNATIONAL INC	LIWA	Producer Durables
LUBYS INC	LUB	Consumer Discretionary
LULULEMON ATHLETICA INC	LULU	Consumer Discretionary
MANNATECH INC	MTEX	Consumer Staples
MATRIXX INITIATIVES INC	MTXX	Health Care
MEMSIC INC	MEMS	Technology
MERCADOLIBRE INC	MELI	Consumer Discretionary
MERCER INS GROUP INC	MIGP	Financial Services
MOLECULAR INSIGHT PHARMA	MIPI	Health Care
MYRIAD PHARMA INC	MYRX	Health Care
NESS TECHNOLOGIES INC	NSTC	Technology
NET 1 UEPS TECHNOLOGIES	UEPS	Financial Services
NIGHTHAWK RADIOLOGY HLDG	NHWK	Health Care
NIVS INTELLIMEDIA TECH	NIV	Consumer Discretionary
NOBEL LEARNING CMNTYS	NLCI	Consumer Discretionary
NORTHEAST CMNTY BANCORP	NECB	Financial Services
NORTHRIM BANCORP INC	NRIM	Financial Services
NORWOOD FINANCIAL CORP	NWFL	Financial Services
NOVAMED INC	NOVAD	Health Care
ODYSSEY MARINE EXPLOR	OMEX	Producer Durables
OHIO VY BANC CORP	OVBC	Financial Services
OILSANDS QUEST INC	BQI	Energy
OLD POINT FINL CORP	OPOF	Financial Services
OLD SECOND BANCORP INC	OSBC	Financial Services
OMEGA PROTEIN CORP	OME	Consumer Staples
ONCOGENEX PHARMAS INC	OGXI	Health Care
ORCHIDS PAPER PRODS COMP	TIS	Consumer Staples
ORION ENERGY SYSTEMS INC	OESX	Materials & Processing
OVERHILL FARMS INC	OFI	Consumer Staples
OXIGENE INC	OXGN	Health Care
PACIFIC CAPITAL BANCORP	PCBC	Financial Services
PAR TECHNOLOGY CORP	PTC	Technology
PARAMOUNT GOLD & SILVER	PZG	Materials & Processing
PARKERVISION INC	PRKR	Technology
PC MALL INC	MALL	Technology
PENNICHUCK CORP	PNNW	Utilities
PEOPLES FINL CORP MISS	PFBX	Financial Services
PERMA-FIX ENVIRONMENTAL	PESI	Producer Durables
PERVASIVE SOFTWARE INC	PVSW	Technology
PHOENIX TECHNOLOGIES LTD	PTEC	Technology
PONIARD PHARMA INC	PARD	Health Care
PORTEC RAIL PRODUCTS INC	PRPX	Producer Durables
PREMIERWEST BANCORP	PRWT	Financial Services
PRIMEENERGY CORP	PNRG	Energy
PROTALIX BIOTHERAPEUTICS	PLX	Health Care
PRUDENTIAL BANCORP INC	PBIP	Financial Services
QC HOLDINGS INC	QCCO	Financial Services
RADNET INC	RDNT	Health Care
RAE SYSTEMS INC	RAE	Producer Durables
RASER TECHNOLOGIES INC	RZ	Energy
READING INTERNATIONAL	RDI	Consumer Discretionary
REPLIGEN CORP	RGEN	Health Care
REPROS THERAPEUTICS INC	RPRX	Health Care
REPUBLIC FIRST BANCORP	FRBK	Financial Services
RESOURCE AMERICA INC	REXI	Financial Services
REWARDS NETWORK INC	DINE	Financial Services
ROCKWELL MEDICAL TECH	RMTI	Health Care
SHENGDA TECH INC	SDTH	Materials & Processing
SHORE BANCSHARES INC	SHBI	Financial Services
SMARTHEAT INC	HEAT	Producer Durables
SMITHTOWN BANCORP INC	SMTB	Financial Services
SOHU COM INC	SOHU	Technology
SOUTH FINANCIAL GROUP	TSFG	Financial Services
STANLEY FURNITURE CO INC	STLY	Consumer Discretionary
STARTEK INC	SRT	Producer Durables
STERLING FINL CORP WA	STSA	Financial Services
SULPHCO INC	SUF	Energy
SUN BANCORP INC NJ	SNBC	Financial Services
SUREWEST COMMUNICATIONS	SURW	Utilities
SUTOR TECH GROUP LTD	SUTR	Materials & Processing
SYMS CORP	SYMS	Consumer Discretionary
TGC INDUSTRIES INC	TGE	Energy
TODD SHIPYARDS CORP	TOD	Producer Durables
TOREADOR RESOURCES CORP	TRGL	Energy
TOWN SPORTS INTL	CLUB	Consumer Discretionary
TRANS1 INC	TSON	Health Care
TRANSCONTINENTAL REALTY	TCI	Financial Services
TREE.COM INC	TREE	Financial Services
U S GEOTHERMAL INC	HTM	Energy
U S GLOBAL INVS INC	GROW	Financial Services
ULTRALIFE CORPORATION	ULBI	Producer Durables
UNITED SECURITY BANC INC	USBI	Financial Services
UNIVERSAL TRAVEL GROUP	UTA	Consumer Discretionary
URANERZ ENERGY CORP	URZ	Materials & Processing
UTAH MED PRODS INC	UTMD	Health Care
VALENCE TECHNOLOGY INC	VLNC	Producer Durables
VALHI INC	VHI	Materials & Processing
WEB.COM GROUP INC	WWWW	Technology
WESTMORELAND COAL CO	WLB	Energy
WILBER CORP	GIW	Financial Services
WILLIS LEASE FINANCE	WLFC	Producer Durables
WONDER AUTO TECH INC	WATG	Consumer Discretionary
YADKIN VALLEY FINL CORP	YAVY	Financial Services
YRC WORLDWIDE INC	YRCW	Producer Durables
ZALE CORP	ZLC	Consumer Discretionary
ZHONGPIN INC	HOGS	Consumer Staples
ZION OIL & GAS INC	ZN	Energy

Sphere: Related Content

Time for A Technical Bounce? Time for A Bullish Option Strategy

Good morning traders, I wanted to take a minute and give you my thoughts on the market. Overall I was very satisfied with Friday's price action and I strongly believe NOW the market is due for a rally. Below you will see some charts, which will support my belief.

First up, we'll take a look at the PowerShares QQQ ETF (QQQQ). The candle pattern here is what is known as a piercing pattern and usually signals a bullish reversal. Some key things to note on this chart are: volume on Friday took out the volume Thursday, and the QQQQ ended up closing back above the 200 day moving average.

Click chart to enlarge
Next up is the Dow Jones Industrial Average SPDR ETF (DIA). This chart is almost identical to that of the Q's as it formed the same bullish candle pattern, volume Friday took out Thursday's, and it closed above its 200 day moving average. However another thing to note is that the DIA traded within a quarter of the "Flash Crash" lows before bouncing.

Click chart to enlarge
Now for the last of the major index ETF's, the S&P 500 SPDR (SPY). As with the other two index ETF's outlined above, this also formed the same bullish piercing pattern, however it did not take out the previous days volume nor could it close above the 200 day moving average. One very interesting thing to note is that the ETF bounced after touching the February closing lows. You can see this on the chart with the Fibonacci retracement lines drawn in blue. We can see the ETF retraced 100% of the move from February 8 close to April 28 close and bounced off of the lowest line.

Click chart to enlarge
It's also important to note that I also believe volatility will come in (or trade lower). To most investor's or trader's it is common sense that as the market rallies, fear or volatility trades lower - which is true. So, the chart below of the volatility index [VIX] will also help support my belief. Unlike those bullish piercing patterns on the ETF's outlined above, the candle pattern which has emerged on the Volatility Index [VIX] is a very bearish pattern. The candle pattern which has emerged on this chart is what is known as a bearish engulfing.

Click chart to enlarge
How I'm playing this potential reversal
After looking at hundreds of charts over the weekend, I put together an option strategy using the Financial Select Sector SPDR (XLF). I chose the XLF for two reasons, the main reason being that the XLF formed the most bullish chart pattern of the major SPDR ETF's I analyzed, and the other reason being that implied volatility is highest in this ETF and if overall market volatility decreases as I expect it to, this should greatly benefit my strategy, as I will be net short volatility. Before you read the strategy outlined below you will need to have knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, check out my e-books heres..

Click chart to enlarge
XLF Option Strategy:
Using the September options expiration, I am looking at selling 14 strike put options for a credit of $115 per contract (meaning I receive $115 cash for each contract sold), with the premium received I will then look to open September vertical call spreads by purchasing September 16 call options and selling September 17 call options against them (one for one) for around $35 per call spread. Note I am choosing to sell the September 17 calls only because volatility is so high and I do not want to overpay for call option premiums. However if one is very bullish a higher strike call could be sold or none at all. Based on theoretical prices as of market close Friday May 21, 2010 this entire strategy can be filled for a net credit of $80.

Profit & Loss: My maximum loss using current data is $1320 per custom spread, and that is if the XLF trades and closes on September options expiration at 0 [zero] per share, highly unlikely. This strategy will return the net credit of $80 if shares of the XLF close above 14 but below 16 come September options expiration. If the ETF trades higher and come September options expiration shares of the XLF are at or above 17, the call side of this strategy will return an additional $65 or 186% (less commissions). This strategy will break even as long as the XLF closes and expires above 13.20 per share on September options expiration.

The ideas outlined above are bullish strategies and should not be considered if you think the ETF will sell off in the near future. However if you feel the ETF could move higher in the near future, this strategy could yield a nice gain. Selling puts "naked" is a very risky strategy and should not be considered with stocks one does not plan or want to hold long in their portfolio. To get a better understanding of stock options and different option strategies please check out my Simplified Stock Option Trading E-Books.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

The reason option volumes have surged in the last five years is because they are a great way to hedge your portfolio as well as create income off of your shares (see chart here). Keep in mind when using this strategy it is essential that broker commissions are low enough to profit from the position.

I must state that one thing which makes me skeptical of a coming rally is the fact that so many individual stocks and ETF's have such OBVIOUS bullish potential reversal chart patterns. And as many of you know, the more obvious they are, the less likely they are to work. Also, it is very important to note before I get into the option position outlined above I need to see a follow through of Friday's action. From a technical standpoint I believe we are due for a bounce, however as we all know anything can happen... Happy trading.

Disclosure: No Positions Sphere: Related Content

Potential Reversal in the Works?

Traders, I am showing you a quick chart of the S&P SPDR (SPY). We opened near the February closing lows retracing 100% of the move. Now we need to reverse higher and a close above 108.46 on the SPY would be short term bullish and would signal a potential reversal. Of course the day is far from over, and I need to see volume take out the 647 million shares traded on the "flash crash" day, but at very least Thursday's volume. Below is the chart I have as of 10 AM.

Today will be extremely volatile and I don't underestimate a 500 point range! Keep in mind that close is king and the level to watch on the SPY is 108.46. A Similar level on the QQQQ is 44.76, but it did not test February closing lows at open. Sphere: Related Content

Why Investor's Should Make Friends with Fear

In this post I will give some advice on why I believe investor's should become friends with fear, and explain how it can be done using stock options. I'm certain many of you already know how the markets gauge fear, but for those of you who don't, a simple way to see how fearful the markets are is an indicator called the Volatility Index [VIX]. The entry symbol to track the VIX is different in almost every brokerage I use, so a sure and easy way to track it is the Ipath S&P 500 VIX Short Term ETN (VXX).

Historically anything above 30 on the Volatility Index is high and signals increased levels of fear in the markets, but for those tracking market volatility using the VXX it looks to be the 24-25 level.

So why should investor's make friends with fear? First it is very important to note that fear is friendly only to an investor which is well educated in stock options. Why? A major factor in pricing an option premium (or contract price) is volatility. Keeping all other things constant, higher volatility = higher premium. This means investor's can sell premiums to cost average down a position, or what I like doing in times of market correction... Selling "naked puts" to get into shares I don't mind owning.

With the VIX soaring to new 52 week highs in the past week, I have been selling premiums on out of the money options on stocks which I wouldn't mind owning. I do have to note that in my last post How I'm Buying Into the Market Correction I closed almost all of the positions the following trading day which was Monday May 10, 2010, even after stating I had sold the puts as an investment and not a trade, but a move of 400+ on the Dow signaled TAKE PROFITS and easy ones were taken. With just 2 trading days left until May options expire there is still some "juice" left in many stocks which I wouldn't mind owning if they were put to me Friday. Below is a list of stocks I am looking at selling puts on, the strike prices, and the per contract premium I would receive as of close Wednesday May 19, 2010.

Company/ETF	Ticker	Strike	Premium	Adjusted Price
SPDR Dow Jones Industrial Average ETF	(DIA)	100	$20	$99.80
SPDR S&P 500 ETF	(SPY)	107	$24	$106.76
PowerShares QQQ Trust, ETF	(QQQQ)	44	$8	$43.92
United States Oil Fund LP ETF	(USO)	33	$33	$32.67
Financial SPDR ETF	(XLF)	14	$4	$13.96
Technology SPDR ETF	(XLK)	21	$5	$20.95
SPDR S&P Metals and Mining ETF	(XME)	48	$30	$47.70
Apple Inc.	(AAPL)	230	$20	$229.80
American Express Company	(AXP)	39	$30	$38.70
Bank of America Corporation	(BAC)	15	$4	$14.96
Citigroup Inc.	(C) *	3	$4	$2.96
Caterpillar Inc.	(CAT)	57.5	$26	$57.24
Cisco Systems, Inc.	(CSCO)	24	$18	$23.82
Ford Motor Company	(F)	11	$7	$10.93
General Electric Company	(GE)	17	$13	$16.87
Corning Incorporated	(GLW)	17	$11	$16.89
Google Inc.	(GOOG)	460	$40	$459.60
Goldman Sachs Group, Inc.	(GS)	130	$25	$129.75
Intel Corporation	(INTC)	21	$10	$20.90
The Coca-Cola Company	(KO)	50	$4	$49.96
Pfizer Inc.	(PFE)	15	$3	$14.97
QUALCOMM, Inc.	(QCOM)	35	$10	$34.90
Sirius XM Radio	(SIRI) *	1	$5	$0.95
Visa Inc.	(V)	70	$72	$69.28

*Indicates June options expiration.

Before selling any puts naked, I always make sure I have enough cash to purchase the shares. I won't be in any rush to sell premiums Thursday because as of 2 AM (EST) futures are slightly under pressure, but once I get the feel of the market I will begin selling premiums on many of the stocks/ETFs outlined in the table above. It is also possible (and likely with the high volatility) that I will be adjusting strike prices according to the market.

The ideas outlined above are bullish strategies and should not be considered if you think the stock will sell off in the near future. However if you feel the stock could move higher or slightly lower in the near future, this strategy could yield a nice gain. Selling puts "naked" is a very risky strategy and should not be considered with stocks one does not plan or want to hold long in their portfolio. To get a better understanding of stock options and different option strategies please check out my Simplified Stock Option Trading E-Books.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

The reason option volumes have surged in the last five years is because they are a great way to hedge your portfolio as well as create income off of your shares (see chart here). Keep in mind when using this strategy it is essential that broker commissions are low enough to profit from the position.

In conclusion I wanted to briefly explain to investor's that something good can be made of fear. Remember fear or volatility brings increased option premiums, therefore if shares fall and are put to an investor on May options expiration, volatility will likely increase or stay the same and option premiums will still be high for June options expiration. Therefore June call options can be written against the shares to sell them at a specific price for an increased option premium as well... But that's an article for another day.

Disclosure: Long BAC, C, F, QCOM, V, GOOG January 300 Calls, Short SIRI June 1 Puts

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How I'm Buying Into the Market Correction

A wise man once said "be fearful when others are greedy and greedy when others are fearful" and this can't be more true in the world of derivatives. When fear or Volatility increases in the market, option premiums soar and easy money can be made. In this post I will explain how I am taking advantage of the increased levels of fear in the market to make some money. First, I'll give a quick fact... The S&P 500 is down about 9% from the high on April 26, and the Volatility Index (VIX) has soared almost 240% in that same period. As I stated money can easily be made selling option premium, but it can also be lost just as easy. However I'm a bit more conservative and I choose to sell put options 5% - 10% lower on stocks or market ETF's I'm willing to take shares of. This is the reason I hold a ton of cash on the sidelines at all times so I can take the shares if I am wrong without going into margin. I began selling put options on stocks and ETF's I am willing to take shares of on Friday, after realizing the SPY bounced off of the 200 day moving average. I mainly sold put options on companies which have been beaten up after good earnings, but also sold put options on a few of my favorite companies. I have put (no pun intended) together a short list of stocks below which I have sold puts on, or will be selling puts on in the week ahead for the May options expiration. The data below is as of market close Friday May 7, 2010.

Company/ETF	Ticker	Strike	Premium	Adjusted Price
SPDR Dow Jones Industrial Average ETF	(DIA)	99	$150	97.50
SPDR S&P 500 ETF	(SPY)	106	$190	104.10
PowerShares QQQ Trust, ETF	(QQQQ)	43	$73	42.27
United States Oil Fund LP ETF	(USO)	35	$76	34.24
SPDR S&P Metals and Mining ETF	(XME)	49	$135	47.65
Apple Inc.	(AAPL)	210	$240	207.60
American Express Company	(AXP)	37	$67	36.33
Bank of America Corporation	(BAC)	15	$40	14.60
Citigroup Inc.	(C)	3	$2	2.98
Ford Motor Company	(F)	11	$34	10.66
General Electric Company	(GE)	15	$21	14.79
Corning Incorporated	(GLW)	16	$21	15.79
Google Inc.	(GOOG)	450	$410	445.90
QUALCOMM, Inc.	(QCOM)	33	$25	32.75
Visa Inc.	(V)	75	$55	74.45

The ideas outlined above are bullish strategies and should not be considered if you think the stock will sell off in the near future. However if you feel the stock could move higher or slightly lower in the near future, this strategy could yield a nice gain. Selling puts "naked" is a very risky strategy and should not be considered with stocks one does not plan or want to hold long in their portfolio. To get a better understanding of stock options and different option strategies please check out my Simplified Stock Option Trading E-Books.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

The reason option volumes have surged in the last five years is because they are a great way to hedge your portfolio as well as create income off of your shares (see chart here). Keep in mind when using this strategy it is essential that broker commissions are low enough to profit from the position.

Disclosure: Short May AAPL 220 Put Options, AXP 38 Put Options, BAC 16 Put Options, F 12 & 13 Put Options, GLW 16 & 18 Put Options, GOOG 450 & 510 Put Options, QCOM 36 & 38 Put Options, V 75 Put Options, XME 50 Put Options

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How I'm Playing Qualcomm

I know it's been a while since I've posted on my blog, but I have been extremely busy with my business. However, I wanted to write a quick post about Qualcomm (QCOM), as I am very confident about an option strategy which I will detail later in this post. First I will note that in my early days as an investor I got BURNED buying shares of Qualcomm and vowed never to purchase or play the stock ever again. It was close to the turn of the new millennium and Qualcomm was really heating up, hitting new highs daily, so I had to jump on the bandwagon. But as we all know nothing lasts forever and "down she came" in the first 6 months of 2000. I didn't jump ship though hoping it would come back, after all many of my other stocks were picking up the slack. But again, nothing lasts forever and the entire market underwent the tech bubble burst. Between Qualcomm and a few other high flying tech stocks such as Corning (GLW) my portfolio dropped over 90% from the peak in 2000 to year end 2001. A painful lesson, but one of the most valuable lessons I've ever learned. Enough about the past though, time to look at the present.

As stated I vowed never to play Qualcomm again, but a lot changes in ten years and a company can go from highly speculative to highly valuable, and in my opinion Qualcomm is highly valuable, and has become even more valuable after selling off over 10% since earnings. I would like to accumulate shares of QCOM on weakness not only because they are presently a smart, safe, and sound company, but looking to the future projected earnings put a forward PE of around 15 on this company, not to mention if and when a device similar to the iPhone from Apple (AAPL) comes to Verizon (VZ), Qualcomm will benefit greatly.

Click chart to enlarge

However I do not want to catch a falling knife because I feel more downside is likely, especially if the market heads lower. It is also worth noting that QCOM formed a bearish engulfing candle pattern on Friday, a potential signal of short-term weakness in the stock, which makes the following option strategy all the more attractive.

Qualcomm Option Strategies: First I'll state that this option strategy may strike you as bearish, and it is, but just for a short time (which is the reason I stated it will benefit from the bearish candle pattern short-term). Overall it is bullish as I am willing to take shares of the stock if it reaches a certain price. I am currently looking to open positions on both the May and June options expiration (half of my desired shares for each expiration). It looks like Qualcomm is trying to form a base around 38 per share, so I will use that as my first level of support. Additional levels of support come in around 37 and 35.50.

May Expiration Strategy: I will structure a ratio put spread using these levels of support. First I'll look to purchase May 38 strike put option contracts, and against each of these contracts I am long, I will sell two May 37 strike put option contracts. This can all be done for a theoretical net credit of $8. This means I receive $8 cash for every one of these positions I am long. For example, If I am willing to get long 500 shares of Qualcomm, I will purchase 5 of the May 38 put contracts, and sell 10 of the May 37 put contracts.

May P&L Info: If Qualcomm closes at or above 38 per share on May options expiration (May 21, 2010) and assuming this strategy is left open, this strategy will return the net credit of $8 per position (less any commissions). If Qualcomm closes at or below 37 per share at expiration and assuming the strategy is left open, this strategy will be profitable down to the break even point of 35.92 per share, but will result in purchasing 100 shares of Qualcomm at 37 for each ratio spread position. The profit max for this strategy at expiration is shares of Qualcomm at exactly 37 per share, which would result in a profit of $108 per ratio position.

June Expiration Strategy: I will employ the same option strategy but slightly different strike prices. I will look to purchase June 37 put contracts and sell two June 36 put contracts against each contract I am long. I decided to structure the June option strategy for a slight lower entry level in case Qualcomm sells off beyond our lowest level of support listed, not to mention I don't like entering shares of any stock all at once (or for the same price). This strategy can be done for a theoretical net credit of $39 per spread.

June P&L Info: If Qualcomm closes at or above 37 per share on June options expiration (June 18, 2010) and assuming this strategy is left open, this strategy will return the net credit of $39 per position (less any commissions). If Qualcomm closes at or below 36 per share at expiration and assuming the strategy is left open, this strategy will be profitable down to the break even point of 34.61 per share, but will result in purchasing 100 shares of Qualcomm at 36 for each ratio spread position. The profit max for this strategy at expiration is shares of Qualcomm at 36 per share, which would result in a profit of $139 per ratio position.

The ideas outlined above are bullish strategies and should not be considered if you think the stock will sell off in the near future. However if you feel the stock could move higher in the near future, this strategy could yield a nice gain. To get a better understanding of stock options and different option strategies please check out my Simplified Stock Option Trading E-Books.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

The reason option volumes have surged in the last five years is because they are a great way to hedge your portfolio as well as create income off of your shares (see chart here). Keep in mind when using this strategy it is essential that broker commissions are low enough to profit from the position.

Disclosure: Long AAPL May 220 Put Options, GLW May 19 Put Options, QCOM, Short AAPL May 230 Put Options, GLW May 20 Put Options

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Monday's Hot Stocks on Heavier Volume

Today's breakout report is for Monday April 5, 2010. If this is your first time reading one of my breakout reports you'll want to read the section below, however if you are familiar with my daily breakout report you should skip ahead to the list of stocks.

To reiterate previous blog posts like this, the first thing I do is scan the list for familiar names, such as stocks I am quite familiar with or ones which have appeared on similar scans multiple times in the past week or two (most of these names are unfamiliar so it saves a lot of time). This indicates there may be some real momentum behind the stock, and that it could trade higher/lower in following sessions as well. Then (if and when any of the stocks I find are familiar to me), I make sure the stock has options available to trade, and then take a look at the chart(s) to see if I can structure a potential option trade. The list in this post includes 22 stocks which traded higher on heavier volume, and 3 stocks which traded lower on heavier volume Monday April 4, 2010. Many times I find an option strategy I plan on opening if I am convinced some money can be made.

The tables below show the company, ticker, per share % increase, and volume increase (% increased compared to 50 day average). The first table is a list of potential bullish stocks, the second table is a list of potential bearish stocks. For your convenience I have ranked both tables in order from greatest to least volume % change.

Breakout Bull
Company	Ticker	Price Change	Volume Change
GeoMet, Inc.	(GMET)	20.44%	1460.55%
Symyx Technologies, Inc.	(SMMX)	22.15%	676.45%
Antares Pharma, Inc.	(AIS)	4.58%	663.89%
POZEN Inc.	(POZN)	8.93%	523.40%
GeoResources, Inc.	(GEOI)	8.62%	521.70%
Anooraq Resources Corporation	(ANO)	6.45%	484.42%
CARDIOME PHARMA CORP	(CRME)	7.70%	470.69%
Microvision, Inc.	(MVIS)	18.54%	407.07%
Axcelis Technologies, Inc.	(ACLS)	7.07%	385.59%
Overstock.com, Inc.	(OSTK)	10.53%	366.65%
Cerus Corporation	(CERS)	14.84%	309.17%
Reliance Steel & Aluminum	(RS)	7.83%	297.00%
Eastman Kodak Company	(EK)	13.19%	292.16%
KMG Chemicals, Inc.	(KMGB)	8.05%	283.07%
AerCap Holdings N.V.	(AER)	7.05%	194.38%
Joe's Jeans Inc.	(JOEZ)	11.31%	191.86%
Harley-Davidson, Inc.	(HOG)	10.54%	183.33%
First BanCorp.	(FBP)	14.35%	181.19%
Cree, Inc.	(CREE)	9.96%	169.51%
Ruth's Hospitality Group, Inc.	(RUTH)	8.82%	164.60%
Aixtron	(AIXG)	4.47%	134.76%
Louisiana-Pacific Corporation	(LPX)	9.11%	109.31%
Breakout Bear
Company	Ticker	Price Change	Volume Change
Lender Processing Services, Inc.	(LPS)	-4.12%	302.06%
Global Payments Inc.	(GPN)	-2.08%	104.51%
Lindsay Corporation	(LNN)	-3.49%	101.79%

From the bullish list of stocks above, one stock which has had some serious momentum lately is KMG Chemicals, Inc. (KMGB). I caught nearly a double in this stock almost three years ago, when many chemical stocks were near their all time highs. As we know most of these stocks including KMGB came crashing back down to earth, however KMGB has been on a tear the last week, and it is starting to remind me of summer 2007. Although I usually write an option strategy on stocks I am bullish on, I will not be able to today, because KMGB is not an optionable stock, however I did not want to pass up the opportunity to let my readers know about this potential bullish breakout. As always I will first give a summary of KMGB from Google Finance and a 6 month daily chart below.

KMG Chemicals, Inc. manufacture, formulate and globally distribute specialty chemicals. The Company has acquired and operates segments engaged in the electronic chemicals, industrial wood preserving and animal health businesses. The electronic chemicals segment provides wet process chemicals to the semiconductor industry, primarily to clean and etch silicon wafers in the production of semiconductors. The Company is a supplier of wet process chemicals to the semiconductor industry in the United States, and has presence in Europe. The Company’s wood preserving chemicals, pentachlorophenol, or penta, and creosote, are sold to industrial customers who use these preservatives primarily to extend the useful life of utility poles and railroad crossties. Its animal health pesticides are used on cattle, swine and poultry to protect these animals from flies and other pests.

Click image to enlarge

KMG Chemicals traded in a tight range for most of March and looks as if it may have formed a base near the 15-16 area before breaking to the upside. Short term it looks as if KMGB is a bit over extended, however I certainly won't be shorting it here. To play the momentum I would purchase shares on any weakness and set a tight trailing stop loss of about 4% - 7%. On weakness, I would need to see KMGB hold the 17.50 level two consecutive days in order to purchase shares.

This is a bullish strategy and should not be considered if you think the stock will sell off in the near future. However if you feel the stock could move higher in the near future, this strategy could yield a nice gain.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

Disclosure: No Positions

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Economic Recession Unfolds in 10 Minutes

I made some changes to my original video and re-uploaded it to Youtube. It is much better quality and I really wanted the video to have the original music tracks: Money Talks by AC/DC, When the Levee Breaks by Led Zeppelin, Gimme Shelter by The Rolling Stones, You Ain't Seen Nothing Yet by Bachman-Turner Overdrive, Low Budget by The Kinks, and Blurry by Puddle of Mudd. Youtube hasn't disabled the sound yet (knock on wood) so watch it while you can and let me know what you think. The various songs used in this video are reserved by original artists. The pictures and news articles used in this video are reserved by original sites. Please comment rate and subscribe to my videos! Also if you'd please share this video I'd greatly appreciate it!

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Happy Easter & Thanks Again

I thought I'd take a minute and thank all of my readers again for the great growth my blog has experienced over the past year. I Hope and plan to bring as many posts of interest in the months ahead. Thanks again, and happy Easter! Sphere: Related Content

It's a Crude Summer: 3 Energy ETF's, 3 Option Plays

The major indices traded higher across the board Thursday, helped manly by basic materials and energy. Natural gas and crude oil futures traded higher to close the session by 6.33% and 1.85% respectively. In this article I will outline why I believe it is time to get long some black gold and discuss how I will play the move using options.

United States Oil Fund (USO)
Before I get into any details, I would like to give an ETF summary from Google Finance and the 6 month (daily) chart below.

United States Oil Fund, LP [USOF] is a limited partnership. USOF is a commodity pool that issues limited partnership interests [units] traded on the NYSE Arca, Inc. (the NYSE Arca). The Company’s general partner is United States Commodity Funds LLC (the General Partner) and is responsible for the management of USOF. The investment objective of USOF is for the changes in percentage terms of its units’ net asset value [NAV] to reflect the changes in percentage terms of the spot price of light, sweet crude oil delivered to Cushing, Oklahoma, as measured by the changes in the price of the futures contract on light, sweet crude oil traded on the New York Mercantile Exchange (the NYMEX).

Click chart to enlarge
As we can see from the chart above USO has successfully broken and closed two consecutive days above the triangle pattern drawn in blue which is a bullish signal. Some resistance may come in around 41.50 - 42 per share, but I honestly believe we could easily see $100 per barrel by mid July so I think we will clear resistance setting new 52 week highs on this ETF.

USO Option Play: As stated I think we could see oil futures trade higher by 15 points or roughly 18% by mid July, therefore with the USO I am looking at opening July Vertical Call Spreads. Yes my prediction on crude oil translates into the ETF trading near 47-48 per share, however I must leave room for error. I would look at purchasing in-the-money July 40 Call options and immediately selling July 45 Call Options against them. As of current market data this spread could be opened for a theoretical price of $202 (plus any commissions) per call spread. This spread is currently in-the-money by 1.24 points so the premium paid for this spread is $78 or 78¢ per share; not too much considering there is over 100 days until the spread expires. If I were to get this spread I would look to take my first wave of profits if and when oil traded to $90 per barrel, then $95, and then $100. I would most likely take losses and stop out if oil trades near $78 and then $75 and try again if and when oil reestablishes an uptrend. If oil hits my target of $100 per barrel earlier than I expect such as by mid June, and we get a flashback of summer 2008 and every analyst on the street is slapping $150 - $200 price targets on oil, I would adjust my profit takes slightly, but remember three words we never hear an analyst say are: I was wrong...

ProSharesUltra DJ-AIG Crude Oil (UCO)
This is a leveraged ETF and should not be held for a long period of time, see my post Double and Triple Leveraged ETFs Revisited: The Real Decay to get a better understanding. Before I get into how I am looking at playing this ETF using options for a continued crude rally, I will give a summary of this ETF from ProShares and the chart below.

ProShares Ultra DJ-UBS Crude Oil seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Dow Jones—UBS Crude Oil Sub-Index

Click chart to enlarge
UCO Option Play: Even though these leveraged ETF's decay with increased levels of volatility, I don't have a problem taking a bet on this ETF, because as stated multiple times already, I believe the trend for crude oil is up until mid July. As we can see from the chart above this ETF too has broken above the triangle pattern (drawn in blue) and closed two consecutive days. This chart predicts UCO trading to 15 and change in a very short period, therefore I have decided to structure a shorter term bet which will get me into this ETF for very slight premium. I would look at opening Vertical Call Spreads for the May option expiration. I would purchase May 13 strike call options and sell May 15 strike call options against them. Based on current market data this spread can be opened for a theoretical price of $80 per spread (plus any commissions). This ETF is currently trading at 13.65 which puts a premium of just over 1% on this spread. The best case scenario would be for this ETF to close and expire above 15 per share on May 21, 2010 which would result in a gain of 150% on the investment, however I rarely wait until expiration to close positions, therefore I would look to lighten up if and when crude works its way up to $90, and then $95 per barrel, and would most likely stop out and take losses if and when crude settled below $80 per barrel.

Energy Select Sector SPDR (XLE)
This ETF is one of the most liquid energy related ETF's out there, and does not invest directly in commodities, but oil and gas related companies. For those unfamiliar with this fund, I have listed the top ten holdings and the chart below.

Company	Ticker
ExxonMobil Corporation	(XOM)
Chevron Corporation	(CVX)
Schlumberger, Ltd.	(SLB)
Occidental Petroleum Corporation	(OXY)
ConocoPhillips	(COP)
Apache Corporation	(APA)
Anadarko Petroleum Corp.	(APC)
Devon Energy Corporation	(DVN)
Halliburton Company	(HAL)
XTO Energy, Inc.	(XTO)

Click chart to enlarge
XLE Option Play: We can see from the chart above that a similar triangle pattern has emerged but has not yet been broken. Although the XLE has not broken and closed above it, I strongly believe it is only a matter of time before it follows the trend of the previous two ETF's discussed. I would like to see the XLE break and close two days above 59 per share, if and when it does, I will be looking at purchasing the June 30, 2010 60 strike call options (note these are the later of the two options which expire in June). Based on current market data the theoretical price is $180 per contract. This is actually the least volatile of the three ETF's discussed in this article, so although the speculation is the cheapest, the probability of having these calls payoff is also the lowest. If the triangle pattern is broken to the upside, the chart projects the XLE up to 63 per share on a short term basis. If I happen to get into these calls, I would look to cover some of my position by selling the 63 call options for the same expiration against the 60's (making the position into a vertical call spread) first if XLE traded to 60.50, then 61.50, and then to 63.

The ideas outlined above are bullish strategies and should not be considered if you think the ETF's will sell off in the near future. However if you feel the ETF's could move higher in the near future, this strategy could yield a nice gain. To get a better understanding of stock options and different option strategies please check out my Simplified Stock Option Trading E-Books.

These are just examples and are not recommendations to buy or sell any security; if you're more bullish/bearish, you’ll want to adjust the strike price and expiration accordingly.

The reason option volumes have surged in the last five years is because they are a great way to hedge your portfolio as well as create income off of your shares (see chart here). Keep in mind when using this strategy it is essential that broker commissions are low enough to profit from the position.

Disclosure: Long UCO April 10 Calls, XLE June 59 Calls, Short UCO April 12 Calls, UCO April 13 Calls, XLE April 56 Puts

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