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us stock market, trade stock
Begin part 2 of 3
THE PLAYS:
Again looking both directions while the Treasury fix plays out.
Upside: Definite defensive flavor this evening.
Play Date: 09/22/2008
MASI (Masimo--$40.01; -1.01; optionable): Medical appliances
http://biz.yahoo.com/p/m/masi.html
EARNINGS: First week November
STATUS: Cup w/handle. First big base for MASI as it sets up the past 5 weeks in the market ups and downs, forming the handle to its 10 month base. This is MASI's first big base since going public in August 2007. Nice handle forming at the 50 day EMA (38.65) with that big reach lower Thursday a good shakeout to clear the way for a new run higher. Excellent action in a weak market and just waiting for a strong upside breakout to show us the buy point on this stock that is doing its own thing in the market.
Volume: 582.144K Avg Volume: 620K
BUY POINT: $41.68 Volume=950K Target=$47.95 Stop=$39.55
POSITION: MQS LH - Dec. $40c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/masi.html
Play Date: 09/22/2008
MMSI (Merit Medical Systems--$19.80; -0.84; optionable): Medical instruments
http://biz.yahoo.com/p/m/mmsi.html
EARNINGS: Third week of October
STATUS: Double bottom w/handle. Forming a neat 6 week base over the 50 day EMA (19.13) after a big breakout and surge in July, clearing a 3 year base. After that surge it is taking a rest, consolidating to set the foundation for the next move. Strong volume Thursday and Friday, very low volume Monday as it faded back, tapping all the way down at the 50 day EMA on the low before rebounding. Good shakeout and the low volume shows no selling. May take another couple of sessions before it makes the break higher, but when it goes we will be ready to make the move. Strong money flow is leading the way higher. Very solid.
Volume: 200.726K Avg Volume: 293.105K
BUY POINT: $20.69 Volume=525K Target=$23.95 Stop=$19.24
POSITION: RMQ AD - Jan. $20c (51 delta, 48 OI) &/or Stock
http://www.investmenthouse.com/cd/mmsi.html
Play Date: 09/22/2008
XTO (XTO Energy--$52.44; -1.81; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Third week of October
STATUS: Double bottom. Strong break higher last week, clearing the 'hump' in its pattern that started with the July selloff in commodities. Nice double bottom and breakout, testing back to form something of a handle to the base. May come back a bit more to test and form a handle to the base, but with energy setting up and money flow surging higher ahead of price we want to be ready to move in as XTO continues the break higher.
Volume: 10.766M Avg Volume: 14.461M
BUY POINT: $53.55 Volume=20M Target=$64.75 Stop=$51.11
POSITION: XTO KJ - Nov. $50c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
Downside:
Play Date: 09/22/2008
APD (Air Products & Chemicals--$80.28; -3.17; optionable): Machinery, chemicals
http://biz.yahoo.com/p/a/apd.html
EARNINGS: Third week of October
STATUS: Put. Looking for the air to come out of Air Products once more as it rebounded last week but stalled at the 10 day EMA (83) and turned down Monday. APD is continuing its downtrend after peaking in June, and is primed for another move down in this downtrend. Money flow is heading lower ahead of price and we are looking for APD to fall after it. A move to the target lands us a 44%ish gain.
Volume: 2.322M Avg Volume: 1.925M
BUY POINT: $79.91 Volume=2.8M Target=$75.05 Stop=$81.77
POSITION: APD VP - Oct. $80p (-32 delta)
http://www.investmenthouse.com/ci/apd.html
Play Date: 09/22/2008
JOYG (Joy Global--$53.16; -1.62; optionable): Farm and construction machinery
http://biz.yahoo.com/p/j/joyg.html
EARNINGS: Early December
STATUS: Put. Imploded to start September, crashing through the 200 day SMA (68.48) on disappointing earnings. Tried to hold that level all August but when it broke it broke big. Rebounded the past two weeks, making it up to the 18 day EMA (54.60) Friday but unable to push further Monday. Looking for JOYG to call no joy at this point and turn lower. Looking for it to break below the 10 day EMA (52.36) on some solid trade to give us an entry point. A move to the target lands us a 45%ish gain.
Volume: 2.797M Avg Volume: 3.011M
BUY POINT: $52.28 Volume=3.5M Target=$46.22 Stop=$55.11
POSITION: JQY WK - Nov. $55p (-48 delta)
http://www.investmenthouse.com/ci/joyg.html
Play Date: 09/22/2008
SDS (UltraShort S&P500 ETF--$70.20; +3.17; optionable)
STATUS: Downside. As SP500 turns down from the 50 day EMA SDS starts back up as it moves inversely to SP500. If SP500 continues the move lower we are looking to move in for another ride on SDS.
Volume: 26.829M Avg Volume: 27.436M
BUY POINT: $70.55 Volume=35M Target=$75.75 Stop=$68.78
POSITION: SDS KR - Nov. $70c (57 delta)
http://www.investmenthouse.com/ci/sds.html
End part 2 of 3
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