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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 08/18/2008
FMC (FMC Corp.--$73.79; +0.15; optionable): Chemicals
http://biz.yahoo.com/p/f/fmc.html
EARNINGS: Announced 7-29-08
STATUS: Double bottom w/handle. Moved higher on the earnings, but then sold back to start August but held the 90 day SMA and bounced. Now FMC is easing back on low volume to the 50 day SMA and 10 day EMA (72.90), showing a nice tight candlestick chart doji on Monday. Kind of an up and down 13 week base, but that is what a double bottom is: up and down. Strong money flow. Love how it has held up and done its own thing as it forms up its base.
Volume: 395.707K Avg Volume: 912.078K
BUY POINT: $75.11 Volume=1.2M Target=$86.75 Stop=$72.77
POSITION: FMC AO - Jan. $75c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/fmc.html
Play Date: 08/18/2008
HLEX (Healthextras--$33.52; -0.46; optionable): Insurance brokers
http://biz.yahoo.com/p/h/hlex.html
EARNINGS: Announced 8-5-08
STATUS: Test breakout. Earnings were solid and shot HLEX higher, clearing a 9 month base on base pattern. Strong volume on the surge and now a nice, easy test of the move, coming back to the 10 day EMA (33.13), tapping it on the Monday low and popping back u to cut the losses. Nice test that is going to give us a buy point. May take another day or two to complete the test but we will be patient, let it finish, then move in.
Volume: 273.612K Avg Volume: 354.325K
BUY POINT: $34.28 Volume=500K Target=$40.95 Stop=$33.13
POSITION: HUE LF - Dec. $30c (76 delta) &/or Stock
http://www.investmenthouse.com/ci/hlex.html
Play Date: 08/18/2008
MSCC (Microsemi--$27.15; -0.72; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mscc.html
EARNINGS: Announced 7-24-08
STATUS: Breakout test. Nice surge last week on rising volume that took MSCC out of a short 9 week reverse head and shoulders pattern. This is the tail end of an 11 month base on base pattern where two bases are juxtaposed; they really work to weed out the sellers. After this low volume test that saw MSCC tap the 18 day EMA on the low (26.84) we are looking for volume to increase as MSCC bounces off this near support and continue the breakout move. Very nice.
Volume: 672.171K Avg Volume: 1.103M
BUY POINT: $27.82 Volume=1.4M Target=$31.95 Stop=$26.55
POSITION: QMS LE - Dec. $25c (69 delta, 94 OI) &/or Stock
http://www.investmenthouse.com/ci/mscc.html
Downside:
Play Date: 08/18/2008
BAC (Bank of America--$29.30; -1.40; optionable): Big Bank
http://biz.yahoo.com/p/b/bac.html
EARNINGS: Announced 7-21-08
STATUS: Put. BAC enjoyed a nice bounce in the July recovery, has moved laterally at 34 through last week, then started to falter. Fell to the 50 day SMA (28) on high volume Wednesday, bounced but volume faded. Made it to the 18 day EMA but started rolling over again Monday on some rising though still below average volume. Looking for it to continue lower and test that prior low; has to go down there to form its base, likely a double bottom, but that move can make us some nice downside volume. A move to the initial target lands a 45%ish gain.
Volume: 59.555M Avg Volume: 81.323M
BUY POINT: $29.09 Volume=85M Target=$25.55 Stop=$30.31
POSITION: BAC VF - Oct. $30p (-47 delta)
http://www.investmenthouse.com/ci/bac.html
Play Date: 08/18/2008
MS (Morgan Stanley--$39.59; -1.29; optionable): Investment brokerage
http://biz.yahoo.com/p/m/ms.html
EARNINGS: Announced 6-18-08
STATUS: Put. Similar to BAC, MS surged in July, making it all the way to the 200 day SMA before stalling last week. It fell to the 50 day EMA (40) on high volume, then slid laterally to end the week, trying to get its feet under it. Started to slide lower Monday on rising though still below average volume, falling below the 50 day EMA. Looking for MS to continue lower and make that test of the prior lows. Our initial target is the late July low, but it can go lower to the July low. A move to the initial target lands a 46%ish gain.
Volume: 13.122M Avg Volume: 20.988M
BUY POINT: $39.11 Volume=24M Target=$35.05 Stop=$40.65
POSITION: MS VH - Oct. $40p (-47 delta)
http://www.investmenthouse.com/ci/ms.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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stock recommendation
stock investment information
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