8 Next, page... TAIPAN most expert hands. Rather, I continue to prefer a
shaped index-option portfolio as the ideal vehicle
for converting the risk inherent in this probable
drop into good clean capital. Playing it down Turn the S&P’s triple-digit
loss into triple-digit gains
with August put contracts         We’re presented with a simple
enough scenario. Right now, the
S&P finds itself sitting at 1,133 at the
38.2% line. From here, the high odds
are a move down to support at the
50% line. This will mean a 142-point
drop over the next a 30 to 60 days.
The other (more bloody) scenario is
a carry-on move to 848.18, which
Adam notes would take 90 to 120 days. This would be a 284.82-point down move.        Armed with this ugly forecast, we’d like to reit-
erate our SPX August 1,100 Puts (SPT TT).  Last month, we recommended them for US$25.15 per
contract. Right now, you can get them for even less.
At last check, they were trading for US$15.00 per
contract.         But who knows what the price will be by the
time this clears your mailbox. We’ll therefore be
issuing a special “Taipan Investment Briefing”  with
updated prices the day this issue hits the Web. Stay
tuned to your daily 247profits e-Dispatch  for exact
pricing.         Meanwhile, as a protective measure (something
we failed to emphasize last time), place a stop-loss
at US$9.00 per contract.            If you work in the stock markets,
there is no better time to go on
vacation than the summer. From
now until late August, signals will be
weak and the market will float about
on low volume much like a blue
plastic shopping bag wafting down
the streets of Baltimore, buffeted
this way and that by an old truck or
bicycle.                                               Here we are five months from a
presidential election, on the verge of Greenspan
rate hikes, two weeks from indigenous rule in Iraq,
a month and a half from earnings, and volume on
the NASDAQ is an anemic 1.1 billion shares. Not
exactly a feverish bull market rally.         But it is my job to find stocks that go up, and at
this time of year you have to find the micro-trends
that are defying the market. Allow me to present Graphic Packaging International (GPK:NYSE). Longtime readers will remember that packaging companies rise in the early part of an economic
expansion. This makes sense, as companies that
start to pick up volume need more cardboard
containers. The entire industry is growing         According the packaging industry we are in the
nascent stages of a bull market. The containerboard
industry showed superior growth in April. Box ship-
ments were up 5.1% from a year ago, and three-
month rolling box shipments were up 5.2% from
the same period last year. In May, average weekly
shipments of cardboard boxes were up 6.2% from a
year earlier.         The American Forest & Paper Association
reports that the operating rate for US container-
board facilities stood at 97.5% in May, up from
94.3% in April. That means we are at almost full
production. Disruptive technology GPK has the added benefit of being an innova- tor. These guys had one simple idea: make 12-packs
fit in everyone’s refrigerator. To do this, they
stacked cans 2 by 6 instead of 3 by 4. The container
is longer and thinner. It fits on the second self—
pure brilliance.         GPK provides paperboard-packaging solutions
to the beverage, food and consumer product indus- Double your money with the Fridge Vendor Chris DeHaemer Bryan Bottarelli For updates on this and all our other plays, you might consider signing up for our free daily WaveStrength Market Report: www.247profits.com/Wavestrength/marketreport/signup.html.