By: Zev Spiro

3-21-2011+Chart+1+HES.png

Major market indices are bouncing as anticipated, although the speed is slightly quicker than expected. The S&P 500 index is close to major resistance, therefore, a halt to the rally is expected if the markets are to continue lower. Monitor selling opportunities and short positions already initiated. If resistance is violated in the major market indexes, protective stops will likely trigger in individual names. Outlined below is a potential setup in Hess Corporation (HES).

The end of the uptrend in HES was signaled by a break of the 50-day simple moving average and a break of the intermediate up trend line. There is a potential bearish head and shoulders forming which could trigger with a break of the neckline at $76. It is important to note that a head and shoulders pattern will only be formed if there is an actual break of the neckline. Trigger: confirmed break of the neckline, at 76 dollars. Target: minimum expected objective is $65, obtained by measuring the height of the pattern, Protective Stop: will trigger if there is a confirmed move back above the neckline.

3-21-2011+Chart+1+HES.png

UPDATES:
Hershey Co. (HSY): Market Letter 2/28/11 – Protective stops may be trailed to a close below the recent pivot low at $52.22.

If you are interested in receiving Zev Spiro’s market letter, please email zevspiro@oripsllc.com subject “T3”

*DISCLOSURE: Long HSY; Short HES

This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.

di
di

T3LiveTrading?d=yIl2AUoC8zA T3LiveTrading?i=PwhZfnCu_CA:QsxkYyDuJ1Y: T3LiveTrading?d=qj6IDK7rITs T3LiveTrading?i=PwhZfnCu_CA:QsxkYyDuJ1Y:

PwhZfnCu_CA