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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 08/28/2008
CAT (Caterpillar--$71.68; +2.12; optionable): Heavy machinery
http://biz.yahoo.com/p/c/cat.html
EARNINGS: Announced 7-22-08
STATUS: Cup. CAT dove lower from May to the July low and then held fast at the January 2007/January 2008 up trendline the past two months. Then it bounced Thursday, gapping higher on the solid GDP that saw a lot of export activity. Now CAT may be just reacting to the excitement on the GDP, but if it shows strong volume on a continued move this pattern can give us a nice run up to 75-76 as a first move and then if it holds after a test there, on up to 82ish.
Volume: 5.521M Avg Volume: 7.199M
BUY POINT: $71.92 Volume=8M Target=$82.95 Stop=$69.65
POSITION: CAT KN - Nov. $70c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/cat.html
Play Date: 08/28/2008
CPWR (Compuware--$11.58; +0.10; optionable): Application software
http://biz.yahoo.com/p/c/cpwr.html
EARNINGS: 7-23-08
STATUS: Test 18 day EMA. Broke out on earnings in late July, clearing a 12 month reverse head and shoulders base. Rallied close to the 2007 high and then started this test, moving laterally with the market, but holding over high support at the 18 day EMA (11.38), using the market's action to consolidate. We made some money on the last move, and now we look to capture some more as it makes the next break higher from this lateral consolidation.
Volume: 2.065M Avg Volume: 3.544M
BUY POINT: $11.68 Volume=4M Target=$14.00 Stop=$11.14
POSITION: CWQ KB - Nov. $10c (81 delta) or CWQ AB - Jan. $10c (78 delta) &/or Stock
http://www.investmenthouse.com/ci/cpwr.html
Play Date: 08/28/2008
DTSI (DTS, Inc.--$33.19; +1.00; no options): Electronic equipment
http://biz.yahoo.com/p/d/dtsi.html
EARNINGS: Announced 8-7-08
STATUS: Double bottom w/handle. Making another run at DTSI as it comes off its deeper test to the 50 day EMA earlier in the week, and bangs up against the top of its handle in the 12 week base. Nice use of the key 200 day SMA as support on the two bottoms. Much better trade on the Wednesday bounce higher, and looking for solid volume again if DTSI can give us the breakout move.
Volume: 125.549K Avg Volume: 210.958K
BUY POINT: $33.77 Volume=315K Target=$40.85 Stop=$31.41
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/dtsi.html
Play Date: 08/28/2008
OTEX (Open Text--$35.85; +1.51; optionable): Enterprise content management
http://biz.yahoo.com/p/o/otex.html
EARNINGS: Announced 8-19-08
STATUS: Cup w/handle. Volume has been mostly positive the past three weeks, i.e. rising on upside sessions as OTEX forms the handle to its 16 week base that is perched just below an all-time high, setting OTEX for the breakout and run. Volume spiked above average Thursday for the first time this week as OTEX rallied to the highs in its lateral handle consolidation. Money flow is taking off to the upside as it readies for the breakout. Looks ready to move in as it makes the breakout. Very nice indeed.
Volume: 931.542K Avg Volume: 650.691K
BUY POINT: $36.11 Volume=725K Target=$41.95 Stop=$34.22
POSITION: QFT AG - Jan. $35c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/otex.html
Good Investing!
Jon L. Johnson and your IH Alerts 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. Good Investing!
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trade stock
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