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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: Looking at potential leaders in financial, health services. All are good and just seeing which ones go first.
Play Date: 10/02/2008
BRKL (Brookline Bancorp--$11.96; -0.56; no options): Savings & Loans
http://biz.yahoo.com/p/b/brkl.html
EARNINGS: Mid-October
STATUS: Double bottom w/handle. BRKL formed a 14 month base at the bottom of a 32 month base. Strong break higher a week back on strong volume, clearing the base and then working laterally this week on very low, below average volume, bumping against the 2205/2006 down trendline. Came to rest Thursday at the 18 day EMA on very low trade, holding near support in all of the selling as well as holding its breakout. Money flow is surging higher ahead of price even as it works laterally. Nice low volume test, setting up the next break higher. Just looking for some volume as it makes the break over the trendline at 12.70.
Volume: 222.224K Avg Volume: 723.46K
BUY POINT: $12.77 Volume=1M Target=$15.65 Stop=$11.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/brkl.html
Play Date: 10/02/2008
CFR (Cullen Frost Bankers--$58.22; -2.83; optionable): Regional southwest banks
http://biz.yahoo.com/p/c/cfr.html
EARNINGS: Third week October
STATUS: CFR is in a 2 year base. Has moved up to the top of the pattern this past month, surging on the bailout proposal and then coming back. Tough session Monday, recovered Tuesday, and is back on track, making a higher low Thursday as it tapped the 18 day EMA and bounced modestly even though it closed lower on the session. Very low trade so no dumping, just a pullback to support in a weak stock market. Money flow is surging higher ahead of price. CFR is perched on the edge of an all-time high and this base gives it a solid foundation to start a new run as a market leader. The spread on the options is wide and we will have to see if they improve.
Volume: 332.789K Avg Volume: 770.114K
BUY POINT: $61.11 Volume=1M Target=$69.95 Stop=$57.11
POSITION: CFR AL - Jan. $60c (45 delta, 116 OI wide sprd) &/or Stock
http://www.investmenthouse.com/ci/cfr.html
Play Date: 10/02/2008
LHCG (LHC Group--$30.15; +1.15; optionable): Home health care
http://biz.yahoo.com/p/l/lhcg.html
EARNINGS: 10-30-08
STATUS: Flat base. Volume jumped up above average Thursday as LHCG jumped up to the top of its 9 week flat base, coming off the 50 day EMA (27.92). LHCG broke higher in late July out of a 16 month double bottom with handle, surging on strong volume. This flat base has allowed it to consolidate and it is ready to make the next break higher and a run at a new all-time high. The option spreads are very wide so looking at stock positions unless spreads improve.
Volume: 340.664K Avg Volume: 269.375K
BUY POINT: $30.69 Volume=400K Target=$36.95 Stop=$28.54
POSITION: HQC LF - Dec. $30c (54 delta, 112 OI, wide sprd) &/or Stock
http://www.investmenthouse.com/ci/lhcg.html
Play Date: 10/02/2008
WTNY (Whitney Holding Corp.--$24.55; -0.15; optionable): Southeastern regional banks
http://biz.yahoo.com/p/w/wtny.html
EARNINGS: 10-16-08
STATUS: Test breakout. WTNY blasted through its 26 month downtrend on the bailout proposal news. After that surge WTNY has come back to test, holding support at the 18 day EMA (24.49), moving laterally the past three sessions on very low trade. Another financial with strong money flow leading the way higher. Looking for a new break higher on a surge of volume for the buy. The spread is pretty wide on the options.
Volume: 213.106K Avg Volume: 1.108M
BUY POINT: $25.11 Volume=1.5M Target=$29.95 Stop=$23.65
POSITION: UVK LE - Dec. $25c (50 delta, $1 spread) &/or Stock
http://www.investmenthouse.com/ci/wtny.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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trade stock
stock recommendation
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