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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: quote 007 who wrote (6202)	6/27/2002 10:14:58 PM
From: SusieQ1065	Respond to of 17639

another 3 letter idea... Play of the Day - Put, Thursday, 06/27/2002 -------------------------------------------------------------------------------- ZLC - Zale $37.18 +0.24 (-1.22 this week) Zale Corporation, and with its wholly owned subsidiaries, is a specialty retailer of fine jewelry. As of July 31, 2001, the Company operated 2,344 specialty retail jewelry stores and kiosks located primarily in shopping malls throughout the United States, Canada and Puerto Rico. The Company principally operates under six brand names including Zales Jewelers, Zales the Diamond Store Outlet, Gordon's Jewelers, Bailey Banks & Biddle Fine Jewelers, Peoples Jewelers and Piercing Pagoda. Zales Jewelers provides jewelry to a broad range of customers. Most Recent Update Well it finally came, now what? ZLC broke down below its 200-dma during yesterday's session and confirmed the breakdown with a decline below the $37 level. But the stock rebounded in today's session, so what gives? No stock moves down in a straight line, plus the rebound in the broader market most certainly gave relief to ZLC during today's session. But the important thing is that the stock gave the confirmation yesterday, which definitely shifted the stock into a bearish position, and forecast further downside over the short term. From here, we like entries on rollovers from the now overhead 200-dma very much. The level is right below the $38 mark now, and should be met by the declining 10-dma in the next session or two. A crossover of the 10-dma and 200-dma should help to accelerate the selling in ZLC. Look for that crossover as a potential entry point into new put plays. Comments ZLC didn't respond with the gusto that was seen in the market averages. In fact, the bulls might have considered ZLC's feeble rally attempt a let down today. Since confirming the trend with the break below the 200-dma yesterday, the stock is suspect to further downside. Its failure to put in a good day today confirmed as much. Look to enter new put plays on a rollover from the 200-dma in tomorrow's session, or on a break below relative lows. BUY PUT JUL-40*ZLC-SH OI=58 at $2.30 SL=1.50 BUY PUT JUL-35 ZLC-SG OI=46 at $0.40 SL=0.00 Average Daily Volume = 253 K