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us stock market, trade stock
Begin part 3 of 3
THE PLAYS:
Play Date: 10/20/2008
AKS (AK Steel Holding--$15.10; +2.44; optionable): Steel and iron
http://biz.yahoo.com/p/a/aks.html
EARNINGS: 10-21-08 before the open
STATUS: Double bottom. Good volume on the upside sessions the past week as AKS set a short double bottom along with the indices. Strong upside trade Monday, well above average and rising. AKS moved through the 10 day EMA (14.80), near resistance. AKS has been knocked around hard in this selling, but the upside volume shows buying, and with earnings Tuesday morning we can see how it reacts. If it continues higher we look for an opening as it tests that initial move. We look for it to hold on a test and then rebound once more. That is when we move in.
Volume: 13.054M Avg Volume: 7.85M
BUY POINT: $15.34 Volume=10M Target=$19.68 Stop=$14.27
POSITION: ASC AC - Jan. $15c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/aks.html
Play Date: 10/20/2008
AMR (AMR Corp.--$11.06; -0.25; optionable): Airline
http://biz.yahoo.com/p/a/amr.html
EARNINGS: Reported 10-15-08
STATUS: Trend reversal. AMR reported earnings last Wednesday after the close and jumped higher Thursday on solid, above average volume. It cleared the 200 day SMA (9.76) on that move after giving it up in early October in the market selling. AMR surged off the lows in July, again on earnings. It cleared the 200 day and has since worked more or less laterally on both sides of that key level. Money flow is running sharply higher head of price. It may take another day or two to rest after the move higher on earnings, but as it continues the move we are looking to move in as it can give us a very nice percentage return with little movement. Don't like airlines as a general rule, but as seen on the weekend report with ALK, they are putting in good patterns that can deliver us great returns even if we don't want to marry them longer term.
Volume: 12.653M Avg Volume: 23.256M
BUY POINT: $11.39 Volume=30M Target=$14.88 Stop=$10.22
POSITION: AMR AM - Jan. $11c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/amr.html
Play Date: 10/20/2008
DIG (Oil & Gas Ultra ETF--$36.83; +6.75; optionable): Energy stock index
STATUS: Double bottom. This is a compilation of some of the big names in oil and gas services. Volume has been surging through the roof the past two weeks as DIG bounced up and down, putting in a short term bottoming pattern. Strong move higher Monday up to the 10 day EMA (37). Looking for another strong volume break through that level to show the buyers still want it, and that is when we move in and ride the recovery up toward the tap down point near 50 from early October.
Volume: 18.443M Avg Volume: 5.571M
BUY POINT: $37.12 Volume=14M Target=$46.75 Stop=$35.45
POSITION: DPB LK - Dec. $37c (52 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/dig.html
Play Date: 10/20/2008
HAL (Halliburton--$20.80; +2.54; optionable): Oil and gas service company
http://biz.yahoo.com/p/h/hal.html
EARNINGS: Announced 10-20-08 before the open
STATUS: Double bottom. If you prefer, you can look at an individual oil and gas service stock versus DIG. HAL already has earnings out of the way; have to like that. It gapped higher on the news but filled much of the gap intraday, closing at the 10 day EMA. Might pause a day or two here but we feel it will not take long for HAL to continue the move off of this short double bottom formed after that rather cataclysmic fall from 55 to 15 in just over 3 months. Primed for a relief/recovery bounce and earnings are the catalyst.
Volume: 31.497M Avg Volume: 20.822M
BUY POINT: $21.64 Volume=26M Target=$25.95 Stop=$20.13
POSITION: HAL AD - Jan. $20c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/hal.html
Play Date: 10/20/2008
LHCG (LHC Group--$29.15; +2.04; optionable): Home health care
http://biz.yahoo.com/p/l/lhcg.html
EARNINGS: 10-29-08 after the close
STATUS: Double bottom with handle. Picking up LHCG again as it has set back up after a fast drop and recovery in the early October selling. The move puts LHCG back in the 10 week handle to a large 19 month double bottom with handle base. Strong money flow is leading the way higher as LHCG makes its bounce. After coming public in mid-2005 this is LHCG's second big base, and this move has set it up to make the breakout to a new all-time high.
Volume: 252.271K Avg Volume: 289.57K
BUY POINT: $29.48 Volume=435K Target=$33.95 Stop=$27.65
POSITION: HQC LF - Dec. $30c (48 delta, 122 OI) &/or Stock
http://www.investmenthouse.com/ci/lhcg.html
Play Date: 10/20/2008
STLD (Steel Dynamics--$10.19; +1.44; optionable): Steel and iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: Announced 10-15-08 after the close
STATUS: Double bottom. Another steel stock, this one with earnings already in the bank. It bounced Thursday on tremendous volume after earnings and then continued the move Monday on a strong shot of volume, clearing the 10 day EMA (9.88) on the move. That also took STLD over the hump in the short two week base, an important resistance point. Money flow has taken a strong turn to the upside and STLD looks ready to give us a solid upside run toward 15 where it formed a brief shelf of consolidation in late September before the sharp October selloff.
Volume: 13.165M Avg Volume: 7.728M
BUY POINT: $10.33 Volume=10M Target=$15.22 Stop=$9.54
POSITION: RQL AB - Jan. $10c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/stld.html
Good Investing!
Jon L. Johnson and your IH Alerts Team
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 in 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. Good Investing!
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