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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Some more plays to catch an upside turn.
Upside:
Play Date: 10/08/2008
FCX (Freeport McMoran--$42.60; +3.91; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
EARNINGS: 10-21-08
STATUS: Trend reversal. Strong volume on Monday when FCX tested lower and rebounded. Faded Tuesday, but then rebounded Wednesday as FXC logged a gain after testing the 2004 to mid-2005 base. This action indicates FCX is setting up for a recovery bounce from this very harsh selling from 75 to 37 over the past two weeks. The bounce from that kind of selling can be sharp and make us some good rebound money.
Volume: 33.601M Avg Volume: 15.263M
BUY POINT: $43.88 Volume=22M Target=$52.95 Stop=$40.81
POSITION: FCX AH - Jan. $40c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/fcx.html
Play Date: 10/08/2008
MA (MasterCard--$163.54; +4.99; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: 11-3-08
STATUS: Trend reversal. You may ask yourself why, why are we looking at MA when consumer credit came in so weak on Tuesday. It sure did but MA held up very well, keeping the lateral move of the past week, avoiding the market selling. Wednesday volume surged as MA rallied, tapping the 10 day EMA (171.71) on the high before fading some. It has dropped down to support at 150 from a base formed July to October 2007 that helped set off a big run. Again, like how it has held the line and moved laterally as the market sold and bad news came out about the sector.
Volume: 7.864M Avg Volume: 4.369M
BUY POINT: $164.21 Volume=6.5M Target=$182.75 Stop=$158.89
POSITION: MAL AL - Jan. $160c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/ma.html
Play Date: 10/08/2008
SNDK (Sandisk--$17.93; -0.10; optionable): Semiconductor memory chips
http://biz.yahoo.com/p/s/sndk.html
EARNINGS: Third week of October but unconfirmed
STATUS: Test 50 day EMA. SNDK formed a double bottom in July and September then gapped higher in mid-September as Samsung made an offer to buy it. It has come back to test that gap over the past three weeks, closing at the August and early September peaks. Strong money flow is leading the way higher as SNDK hangs in and sets up one of the better patterns to rally off of. Looking for some solid volume as SNDK breaks higher off of this test.
Volume: 10.057M Avg Volume: 11.938M
BUY POINT: $19.22 Volume=18M Target=$22.95 Stop=$17.87
POSITION: SWQ AS - Jan. $19c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/sndk.html
Play Date: 10/08/2008
SPY (S&P Depository Receipts--$97.51; -2.52; optionable)
STATUS: Trend reversal. Looking to catch SPY as SP500 makes its break off of the harsh selling the past two weeks. Gapped lower Monday and gapped lower Wednesday, showing a hammer doji on the candlestick chart. This is pure rebound play given the market action Wednesday and all of the indicators, technical and sentiment.
Volume: 725.788M Avg Volume: 323.532M
BUY POINT: $98.89 Volume=500M Target=$108.45 Stop=$96.75
POSITION: SWG LS - Dec. $97c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/spy.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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