JEF Short

Good Morning:

Jefferies Group Inc. (JEF) closed last night at $9.84, this is in the target range that we suggested less than one month ago (see below as well as the attached PDF). This is a return of over 36% in one month!

As we have seen in this market financial names continue to be taken out back and beaten over and over again. We are suggesting to our trading accounts that they install a tight stop on their JEF short. All indications are that the melt could continue, and we would like to keep the profits rolling. However, the $9-$10 range was our initial target and we would not want to give back too much of a great return.

Best

*These recommendations are given to our institutional clients