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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
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NEW: To view the Part 3 plays in a nifty, chart-based HTML REPORT use the following link:
http://www.investmenthouse.com/ihmedia/DailyPlays.htm
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Upside: Ready to play some rebounds from sharp selling and some solid upside patterns.
Play Date: 09/06/2008
AKS (AK Steel Holding--$40.63; +0.15; optionable): Steel and iron
http://biz.yahoo.com/p/a/aks.html
EARNINGS: Announced 7-22-08
STATUS: Rebound. AKS sold off hard last week, breaking down from a three week lateral consolidation at some support at 50. Sharp selling, but volume did not break above average until Thursday. Friday showed the strongest volume of all as it sold then reversed to close with a modest gain. Nice doji reversal on high volume and looking to play it to the upside as it rebounds in a 2 to 3 day market rally. Looking for a move up to the resistance at 50, gauging the strength of the market's move along the way and if we need to close it before then we will.
Volume: 10.961M Avg Volume: 4.891M
BUY POINT: $41.28 Volume=5M Target=$49.00 Stop=$39.91
POSITION: AKS LH - Dec. $40c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/aks.html
Play Date: 09/06/2008
AMTD (Ameritrade--$20.90; +0.51; optionable): Investment brokerage
http://biz.yahoo.com/p/a/amtd.html
EARNINGS: Announced 7-17-08
STATUS: Ascending triangle. AMTD is flirting with the breakout from a 2.5 year base, showing some great upside volume Tuesday and Wednesday before it sold back with the market Thursday, but on volume that dropped back below average. It held the 18 day EMA (20.38) on the closes and after a drop Friday it started an upside rebound to close the week. Very solid. This is one of the financials we noted that is set up very well to move higher, an early leader in the overall sector.
Volume: 3.451M Avg Volume: 4.061M
BUY POINT: $21.12 Volume=4.1M Target=$24.95 Stop=$19.84
POSITION: TQA AD - Jan. $20c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/amtd.html
Play Date: 09/06/2008
FCX (Freeport McMoran--$73.91; -1.02; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
EARNINGS: Announced 7-22-08
STATUS: Double bottom. Okay it is a stretch to call this a double bottom, but it did just undercut the early August low on last week's selling, but then reversed Friday and recovered a loss that reached down near the January intraday low. Volume was the strongest sine that January low when it sold off and reversed just as it did Friday. That started a nice upside run of 20 points before it took a rest. Looking to catch something similar here on a continued rise from here, taking what we can from the move. It will likely come fast.
Volume: 32.285M Avg Volume: 11.538M
BUY POINT: $75.25 Volume=15M Target=$84.00 Stop=$73.35
POSITION: FCX KO - Nov. $75c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/fcx.html
Play Date: 09/06/2008
SGEN (Seattle Genetic--$10.83; +0.06; optionable): Biotechnology
http://biz.yahoo.com/p/s/sgen.html
EARNINGS: Announced 7-22-08
STATUS: Double bottom w/handle/Test 50 day EMA. A big 'W' bottom has formed December through August. The past three weeks SGEN has pulled back on low, below average volume to test the July surge that formed the right side of the base. It held the 50 day EMA (10.76) last week, showing a big doji with tail reversal on Friday as volume started back up. Looking for SGEN to break higher off of this doji and give us a good entry point for a nice run up to the 2007 highs. Like how it sold back to complete its pattern without much volume, indicating not many sellers. Some devoted stockholders.
Volume: 406.362K Avg Volume: 476.023K
BUY POINT: $11.31 Volume=700K Target=$13.45 Stop=$10.57
POSITION: DGQ LB - Dec. $10c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/sgen.html
Play Date: 09/06/2008
WFC (Wells Fargo--$31.20; +1.53; optionable): Big banks
http://biz.yahoo.com/p/w/wfc.html
EARNINGS: Announced 7-16-08
STATUS: Reverse head and shoulders/trend reversal. WFC broke the October/March/May down trendline in July, tested it mid-August, and then started back up. In the selling last week it came back to test, but tapped the 50 day EMA and the 200 day SMA on the Friday low and shot back up on the best volume in three weeks, moving near the top of the 6 week range since the trend reversal. This action has also formed the right shoulder to a 5 month reverse head and shoulders base, putting WFC near the breakout point. Strong money flow is running higher even as WFC goes through these gyrations. With the Treasury 'backstop' also known as bailout of FRE, FNM, the financials will be ready to rally. We will be ready to move into WFC, one of the early leaders for the financials, when it makes its move Monday.
Volume: 52.601M Avg Volume: 54.162M
BUY POINT: $31.78 Volume=55M Target=$37.95 Stop=$29.56
POSITION: WFC AM - Jan. $31c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/wfc.html
CONTINUING PLAYS STILL READY TO MOVE:
Play Date: 09/04/2008
JAS (Jo-Ann Stores--$25.09; -0.42; optionable): Retail
http://biz.yahoo.com/p/j/jas.html
EARNINGS: Announced 8-27-08
STATUS: Ascending base. Just some excellent action last week in the selling, holding near support on the intraday lows. Friday JAS tapped the 18 day EMA on the low (24.28) and rebounded to basically flat, never giving up any ground. Beautiful. Ready to move in as it makes its move. To recap: Got a gap higher on volume last week as JAS announced earnings. It came back and tested the 10 day EMA on the Wednesday low (24.36) and then shot higher on stronger trade. That move takes it out of a 12 week base that finished off a larger 15 month pattern. Excellent run off the low and then this base to consolidate it, and now breaking higher once more. Strong money flow is ready to lead JAS higher.
Volume: 524.524K Avg Volume: 913.595K
BUY POINT: $26.31 Volume=1M Target=$31.45 Stop=$24.11
POSITION: JAS AE - Jan. $25c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/jas.html
Play Date: 09/04/2008
PG (Procter & Gamble--$70.78; +0.34; optionable): Consumer personal products
http://biz.yahoo.com/p/p/pg.html
EARNINGS: Announced 8-5-08
STATUS: Double bottom w/handle. Another solid stock that ignored the selling Thursday and Friday. About all it did was test the 18 day EMA (69.98) on the Friday low and rebounded to positive. Just some more work in the handle. Beautiful and just waiting for this pretty picture to turn into a pretty breakout. To recap: While the market burns and NYSE large caps dive, PG is working on a three week handle to its 9 month base. Love how it is scratching out a solid upside base as the market heads toward the 2008 lows. People have to buy what PG sells even in a weak economy, and thus money is moving Proctor's way. This base has formed over time and that sets a very good foundation for a run higher.
Volume: 11.579M Avg Volume: 13.552M
BUY POINT: $72.11 Volume=16M Target=$80.95 Stop=$69.77
POSITION: PG AO - Jan. $70c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/pg.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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