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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 08/09/2008
ARO (Aeropostale--$34.40; +2.00; optionable): Teen apparel stores
http://biz.yahoo.com/p/a/aro.html
EARNINGS: 8-21-08
STATUS: Cup. Another one of the leading retailers, ARO is coming off the bottom of a solid 12 week base formed after the April breakout and run higher from a longer 10 month base. Interestingly, during the July selling and worries about the economy and consumer, it sold all the way down to 28 intraday, completely testing the breakout from that prior base, then it shot back up to close within the confines of its pattern. It continued forming up and Friday was breaking nicely higher though volume slipped back below average as it did. With the great performance in the leading retailers last week we are looking for ARO to show us the breakout this week and move to an all-time high of its own.
Volume: 2.816M Avg Volume: 2.866M
BUY POINT: $34.77 Volume=4M Target=$41.95 Stop=$32.34
POSITION: ARO JG - Oct. $35c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/aro.html
Play Date: 08/09/2008
CRM (Salesforce.com--$69.59; +1.97; optionable): Sales force management software, services
http://biz.yahoo.com/p/c/crm.html
EARNINGS: 8-20-08
STATUS: Double bottom w/handle. CRM is always one of our favorite stocks to play because it moves so darn well. After a volatile run higher March to June it fell into the current 7 week base, testing the 200 day SMA in the July selling, rebounding, then forming the second bottom in late July. Started this month well, tested, and then Friday was back at it on the best volume in three weeks. Looking for CRM to continue the move this week and that will be our cue to move in.
Volume: 2.078M Avg Volume: 1.776M
BUY POINT: $70.22 Volume=2.5M Target=$79.95 Stop=$66.77
POSITION: CRM KN - Nov. $70c (47 delta) &/or Stock
http://www.investmenthouse.com/ci/crm.html
Play Date: 08/09/2008
CYBS (Cybersource--$18.52; +0.50; optionable): Electronic payment for internet sellers
http://biz.yahoo.com/p/c/cybs.html
EARNINGS: Announced 7-24-08
STATUS: Reverse head and shoulders. CYBS has made us some money in the past and it has set up once more to make another run higher with the current 9 week accumulation base. Great volume Tuesday as CYBS leapt higher but then it sold back to the 10 day EMA where it reloaded and was up again Friday though on lower trade. Nice pattern and it is in position to give us a nice breakout and move beyond a 7 year high.
Volume: 633.344K Avg Volume: 941.663K
BUY POINT: $19.32 Volume=1.4M Target=$23.32 Stop=$17.97
POSITION: CXQ JW - Oct. $17.50c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/cybs.html
Play Date: 08/09/2008
EDU (New Oriental Education & Tech--$74.26; +0.51; optionable): Chinese training services
http://biz.yahoo.com/p/e/edu.html
EARNINGS: Announced 7-17-08
STATUS: Cup w/handle. Something of a ragged cup but a definite pattern as EDU works on a four week handle to its 12 week base. Got a bit wild to start the month, but held the 50 and 200 day SMA that are basically coincident, then jumped higher the last half of the week. EDU is well-positioned to move higher, and when it does it can run like the wind. Low volume of late, and looking for stronger volume as it makes the break through resistance and clears this base. A top stock in terms of earnings growth rate.
Volume: 235.16K Avg Volume: 648.083K
BUY POINT: $76.88 Volume=975K Target=$88.75 Stop=$72.11
POSITION: EDU JO - Oct. $75c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/edu.html
Play Date: 08/09/2008
UTHR (United Therapeutics--$109.71; +0.74; optionable): Drugs
http://biz.yahoo.com/p/u/uthr.html
EARNINGS: Announced 7-31-08
STATUS: Breakout test. Announced earnings to end July and that shot it out of a nicely formed 8 month cup with handle base. Surged on the news, but then the market sold and it lost its momentum, fading back Wednesday and Thursday with the market. It held near support at the 18 day EMA, however, and started to bounce some Friday. Very strong and looking for UTHR to find its footing here at the 18 day (108.35) and resume the breakout move. As it does that is when we move in.
Volume: 960.1K Avg Volume: 559.548K
BUY POINT: $110.88 Volume=800K Target=$124.95 Stop=$108.11
POSITION: FUH KB - Nov. $110c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/uthr.html
Good Investing!
Jon L. Johnson and The Daily Staff
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 of 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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