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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Upside: A series of those early cycle stocks moving higher as well as a rebound play in the commodities
Play Date: 09/11/2008
CELG (Celgene--$70.67; +2.62; optionable): Biotechnology
http://biz.yahoo.com/p/c/celg.html
EARNINGS: 10-23-08
STATUS: Test 200 day SMA. CELG is back at it. It broke higher from a 9 month base in late June and rallied to a new high over 75. It struggled hard, however, in August to early September, testing down close to the 200 day SMA intraday last Friday then reversing furiously. It held steady through Wednesday and then Thursday took off on rising, average volume. Looks ready to continue higher and ready to move in as CELG continues the renewed rally off of this test.
Volume: 4.897M Avg Volume: 4.734M
BUY POINT: $70.91 Volume=5.5M Target=$80.95 Stop=$67.94
POSITION: LQH AN - Jan. $70c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/celg.html
Play Date: 09/11/2008
HCBK (Hudson City Bancorp--$18.99; +0.83; optionable): Savings & Loans
http://biz.yahoo.com/p/h/hcbk.html
EARNINGS: Announced 7-23-08
STATUS: Cup w/handle. Somewhat of a ragged pattern, but we are looking at HCBK again as it sets up once more and continues to act as a leader in the financial sector. It is working on an 18 week base, showing a big doji on the candlestick chart at the 50 day EMA (18.01) Wednesday, rebounding to hold above that key support level. Thursday it was all business, surging off the 50 day EMA on some very strong, above average volume. Strong volume since the Treasury action. Being patient, letting it show us a strong break over 19 to give us the entry point.
Volume: 13.41M Avg Volume: 9.8M
BUY POINT: $19.22 Volume=14M Target=$21.45 Stop=$17.91
POSITION: KHQ AW - Jan. $17.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/hcbk.html
Play Date: 09/11/2008
MT (Arcelor Mittal--$63.40; +1.96; optionable): Steel and iron
http://biz.yahoo.com/p/m/mt.html
EARNINGS: 11-5-08
STATUS: Trend reversal. MT was crushed in the hedge fund liquidation, falling from 80 the last day of August to 58 Tuesday. It held just above the January low and bounced Thursday on huge volume. It has that gap lower to start September, and it many just try a sharp bear market rally to fill that gap or give a run at it as in late July. Unlike many in its sector, MT showed huge upside volume and that shows it ahs some upside potential that we can ride as a rebound move up toward a series of price points at the 75ish range then get out of Dodge.
Volume: 9.491M Avg Volume: 4.77M
BUY POINT: $63.76 Volume=3.2M Target=$74.85 Stop=$59.77
POSITION: MT LL - Dec. $60c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/mt.html
Play Date: 09/11/2008
TOL (Toll Brothers--$25.04; +0.33; optionable): Homebuilder
http://biz.yahoo.com/p/t/tol.html
EARNINGS: Announced 9-4-08
STATUS: Breakout test. One of the early cycle stocks, TOL formed a 15 week cup with handle base and broke out Monday with a sharp gap on the Treasury takeover of the mortgage market, comrade. It fell right back to test, but held the 18 day EMA (23.87) on the intraday lows and then Thursday it was moving back up on very strong, above average volume. Strong money flow is leading the way higher as it clears those higher highs hit in April to May, giving it some open field to run up to 34ish, the January 2007 highs. Our initial target is not that ambitious, but will give us a very nice return.
Volume: 8.766M Avg Volume: 4.69M
BUY POINT: $25.72 Volume=6M Target=$30.85 Stop=$23.92
POSITION: TEP LEq - Dec. $25c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/tol.html
Play Date: 09/11/2008
WHR (Whirlpool--$88.00; +1.10; optionable): Durable goods, appliances
http://biz.yahoo.com/p/w/whr.html
EARNINGS: Announced 7-23-08
STATUS: Reverse head and shoulders. Strong break higher Monday on the Treasury takeout, clearing the right shoulder to a 7.5 month base. Reversed immediately on Tuesday. Managed to hold the 10 day EMA (83.88) and bounced Wednesday. Repeated that action Thursday but gained ground on rising, above average volume. Ready to move in as it continues the break higher. Strong money flow is higher ahead of the stock. Another early cycle stock and ready to move in as WHR bounces after this test.
Volume: 1.879M Avg Volume: 1.629M
BUY POINT: $88.54 Volume=2.2M Target=$99.90 Stop=$83.77
POSITION: WHR LQ - Dec. $85c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/whr.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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