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stock recommendation, stock pick
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 08/20/2008
ADBE (Adobe Systems--$44.28; +0.55; optionable): Software
http://biz.yahoo.com/p/a/adbe.html
EARNINGS: 9-16-08
STATUS: Breakout test. Big surge on nice volume two weeks back sent ADBE out of its 8 week cup with handle pattern that is part of a larger 10 month reverse head and shoulders base. A perennially strong stock, ADBE is set up very nicely to make the next break higher and give us a nice entry point for a strong run higher.
Volume: 4.018M Avg Volume: 6.435M
BUY POINT: $44.48 Volume=8M Target=$51.31 Stop=$42.88
POSITION: AEQ AV - Jan. $42.50c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/adbe.html
Play Date: 08/20/2008
DGX (Quest Diagnostics--$54.15; +0.10; optionable): Medical labs
http://biz.yahoo.com/p/d/dgx.html
EARNINGS: Announced 7-22-08
STATUS: Test 18 day EMA. DGX surged out of a 6.5 month reverse head and shoulders base in mid-July, a pattern you often see at the bottom of a cup base. Indeed that is the case here as DGX has formed an 11 month cup and could be on the handle phase right now where the last sellers from the surge are shaken out. Nice low volume test and a tight range over near support at the 18 day EMA (53.71). Solid pattern and this stock has been a winner for us in years past and now looks to be reasserting itself and ready for that role again.
Volume: 986.489K Avg Volume: 1.228M
BUY POINT: $54.88 Volume=1.8M Target=$63.32 Stop=$53.45
POSITION: DGX KJ - Nov. $50c (76 delta) &/or Stock
http://www.investmenthouse.com/ci/dgx.html
Play Date: 08/20/2008
GENZ (Genzyme--$81.29; -0.89; optionable): Biotechnology
http://biz.yahoo.com/p/g/genz.html
EARNINGS: 10-22-08
STATUS: Test breakout. Nice breakout last week as GENZ cleared the handle to an 8 month double bottom with handle base, moving on strong volume. During this week's selling it has come back to test on lighter volume, holding the 10 day EMA (80.83) on the Thursday low. Strong move to a new high after a great base, and this test is giving us the perfect entry point for the run out of this base. Nice.
Volume: 3.039M Avg Volume: 2.954M
BUY POINT: $82.42 Volume=4M Target=$94.95 Stop=$80.44
POSITION: GAA JP - Oct. $80c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/genz.html
Play Date: 08/20/2008
XTO (XTO Energy--$50.28; +3.48; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Announced 7-22-08
STATUS: Trend reversal. A great leader in the energy rally and made us some nice green on that run then an ugly plunge in July from 74 to 44. It leveled out in a tight range and then gapped higher Thursday on strong volume. Looking to pick off the stock as it makes a further run higher to resistance at 60. A nice gain, particularly with the options, and if it leads to more, great.
Volume: 20.685M Avg Volume: 11.857M
BUY POINT: $50.88 Volume=14M Target=$58.45 Stop=$47.97
POSITION: XTO KJ - Nov. $50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.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 pick
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