BOUGHT +2 TCK 100 NOV 08 5 CALL @1.00

[caption id="attachment_775" align="aligncenter" width="500" caption="Teck Cominco Ltd."][Teck Cominco Ltd.][][/caption]

[caption id="attachment_776" align="aligncenter" width="500" caption="Commodity Index"][Commodity Index][][/caption]

Just a plethora of horrible news for TCK lately. Last week on 11/11, Financial Post published an article about it. TCK gapped down on 11/12. Even the Motley Fool has an article titled "What the Heck, Teck?"

TCK share price seem to be settling in \$5 - \$6. So why the heck am I long now? Ignoring the hypes, the fundamentals of TCK still stand. See the Motley Fool article. It has \$2.7 cash/share and 0.17 debt/equity ratio. Granted, it took on \$9.8 billion of debt recently, about 4 times its current market cap.!

The technicals though, are looking good. On the daily chart, the VW-MACD is showing a positive divergence. The CO has reached an unprecedented low and is just heading back up.

Furthermore, the commodities are showing signs of a positive divergence too.

Upside: In addition to the above, Max Pain is at \$30 (\$10 for CBOE data) for November! Yes, \$30!

Resistance: \$6

Downside: Same reasons why TCK has dropped from \$30 to \$5. Possibility of defaulting on massive loan.

Support: \$5

Bottom line: Max pain at \$30 when we're just below \$6! TCK is a diversified miner, a value producing company. TCK and ABB are now my top choices in this struggling economy.

[Teck Cominco Ltd.]: http://traderpau.files.wordpress.com/2008/11/2008-11-17-tck.png [Commodity Index]: http://traderpau.files.wordpress.com/2008/11/2008-11-17-dbc.png