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us stock market, stock recommendation
Begin part 3 of 3
Due to the approaching storm and the need to complete preparations we are only including new plays in this evening's report. We anticipate a full report on Wednesday after Edouard passes on by.
THE PLAYS:
NEW PLAYS:
Upside:
Play Date: 08/04/2008
CFX (Colfax Corporation--$27.62; +1.20; optionable): Fluid handling products (pumps, valves, etc.)
http://biz.yahoo.com/p/c/cfx.html
STATUS: Ascending base. Looking up CFX' old address again as it prepares to breakout from its second base since going public in May. Nice little 4 week base using the 50 day EMA (24.99) on the lows as support. Volatile, but trending higher and moving Monday on stronger, average volume. Strong money flow is leading the stock higher. Looking to move in as CFX makes its move higher. Very solid fundamentals growth rates to go along with the nice pattern.
Volume: 563.87K Avg Volume: 871.985K
BUY POINT: $27.78 Volume=650K Target=$33.45 Stop=$25.84
POSITION: CFX LE - Dec. $25c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/cfx.html
Play Date: 08/04/2008
CHT (Chunghwa Telecom--$25.39; +0.42; optionable): Chinese telecom
http://biz.yahoo.com/p/c/cht.html
EARNINGS: No date provided yet
STATUS: Cup w/handle. Forming a 4 month shallow cup, fading back late last week to test and make a higher low given Monday's bounce higher off the 90 day SMA. This base formed after CHT rallied January to late March for a 30% gain. This current base is consolidating the gain and laying the lines for the next breakout and run higher. Looking for it to move over the April to late July down trendline in the base, and looking for a bit of volume as it makes the move. That is our cue to move in for the next run higher.
Volume: 809.888K Avg Volume: 1.106M
BUY POINT: $25.81 Volume=1.5M Target=$30.95 Stop=$24.69
POSITION: CHT LE - Dec. $25c (56 delta, 135 OI) &/or Stock
http://www.investmenthouse.com/ct/cht.html
Play Date: 08/04/2008
JNJ (Johnson & Johnson--$68.98; +0.88; optionable): Drugs and such
http://biz.yahoo.com/p/j/jnj.html
EARNINGS: 10-14-08
STATUS: Ascending triangle. JNJ is moving in a large 3.5 year triangle, a very solid foundation for a breakout and sustained run higher. This kind of base does not set up very often, and when it does you move in when it makes the breakout and then just let it go. JNJ may not run 10% in a day on its moves, but a breakout from this can propel it to a very nice initial gain that will make us money on the options and then we let the stock position just continue to work for us longer term. That is what a strong breakout from one of these bases can initiate. Volume is solid as it bumps up at the breakout; want to see it turn a bit stronger as it makes the break.
Volume: 13.695M Avg Volume: 11.78M
BUY POINT: $69.44 Volume=17M Target=$78.00 Stop=$67.71
POSITION: JNJ JN - Oct. $70c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/jnj.html
Play Date: 08/04/2008
PETS (PetMed Express--$14.14; -0.16; optionable): Mail order pet medicines
http://biz.yahoo.com/p/p/pets.html
EARNINGS: Announced 7-21-08
STATUS: Test breakout. PETS broke out from a 12 month double bottom with handle in July after its earnings announcement and rallied to 15. on the move. Testing back during the market selling the past few sessions, tapping at the 18 day EMA (13.94) on the low and rebounding to flat on rising, above average volume. That keeps the breakout move alive and the test is one of our favorite spots to enter. Looking for the continued move higher on solid trade.
Volume: 406.351K Avg Volume: 298.428K
BUY POINT: $14.66 Volume=450K Target=$17.65 Stop=$13.71
POSITION: TRQ LC - Dec. $15c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/pets.html
Play Date: 08/04/2008
UTHR (United Therapeutics--$113.75; -0.65; optionable): Drugs
http://biz.yahoo.com/p/u/uthr.html
EARNINGS: Announced 7-31-08
STATUS: Breakout test. UTHR exploded higher on the earnings, breaking out from a nicely formed 8 month cup with handle. Strong volume as it surged last Thursday, gained a bit more Friday, and then closed basically flat Monday after testing lower and rebounding. It may come back more toward 110 before it decides to move higher; it was a strong breakout session and it may want to put in a quick test before moving once more. As the market has already made a 3-day pullback, however, UTHR likely breaks higher once more if the market does. In that instance we pick up part of the position and then wait for it to come back and make the full test before adding more positions to complete the buy. Very nice.
Volume: 611.398K Avg Volume: 558.828K
BUY POINT: $114.54 Volume=800K Target=$129.95 Stop=$110.57
POSITION: FUH KC - Nov. $115c (49 delta) &/or Stock
http://www.investmenthouse.com/ct/uthr.html
New buy point on a current position:
Play Date: 08/04/2008
NSC (Norfolk Southern--$70.15; -0.47; optionable): Railroads
http://biz.yahoo.com/p/n/nsc.html
EARNINGS: Announced 7-22-08
STATUS: Breakout test. Great breakout on its earnings, gapping out of a 7 week cup with handle base on strong volume and rallying to 75 on the high. Tested back in this selling the past three sessions, holding the 10 day EMA on the Monday close. Excellent action from an excellent leader and looking for it to bounce up off of this selling to give us a new entry point on this leader.
Volume: 3.815M Avg Volume: 3.864M
BUY POINT: $71.45 Volume=4.2M Target=$85.45 Stop=$69.21
POSITION: NSC LN - Dec. $70c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/nsc.html
Good Investing!
Jon L. Johnson and your Technical Traders Report Team
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
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us stock market
stock recommendation
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