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us stock market, trade stock
Begin part 3 of 3
Full report issues Tuesday
THE PLAYS:
New Plays:
New Post-Split Play:
Play Date: 10/27/2008
FINL (Finish Line--$7.44; +0.34; optionable): Sports apparel stores
http://biz.yahoo.com/p/f/finl.html
EARNINGS: Announced 9-25-08
STATUS: Double bottom. FINL is making its first test of the trend reversal that started at the beginning of 2008. Nice reversal and rally through August, then selling back September to early October, finding support at the key 200 day SMA (7.14). It held and has worked laterally the past three weeks, forming something of a double bottom at that level. After falling off to below average during that test, volume has started to swell the past three sessions. Strong money flow is out ahead of price and working higher as it tests. Very positive divergence and FINL looks ready to leave the starting blocks.
Volume: 1.065M Avg Volume: 1.342M
BUY POINT: $7.92 Volume=2M Target=$10.00 Stop=$7.08
POSITION: IUL BU - Feb. $7.50c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/finl.html
Leader Plays:
Play Date: 10/27/2008
RAH (Ralcorp Holdings--$64.33; -1.52; optionable): Processed & packaged food, beverages
http://biz.yahoo.com/p/r/rah.html
EARNINGS: 11-11-08
STATUS: Test 50 day EMA. RAH broke out from a 16 month base in September, rallying nicely into the start of October. That is when the market selling hit and RAH faded with the market. It fell to the 200 day SMA (58.27) and bounced, just to come back last week to test again intraday and bounce to hold the 50 day EMA (63.76). Nice double bottom test of the 200 day SMA and holding the 50 day Monday, setting up for the continued move higher off this support. Low volume for the past 2.5 months since the breakout, so looking for some trade to show up as RAH makes its next move higher.
Volume: 756.943K Avg Volume: 1.568M
BUY POINT: $66.77 Volume=2M Target=$75.95 Stop=$63.55
POSITION: RAH LM - Dec. $65c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/rah.html
Play Date: 10/27/2008
WPI (Watson Pharmaceuticals--$22.45; +0.84; optionable): Generic drugs
http://biz.yahoo.com/p/w/wpi.html
EARNINGS: 10-29-08 before the open.
STATUS: Double bottom. Some good action and upside volume during this 2.5 week pattern, setting up for a breakout move with earnings coming Wednesday morning. It is always aggressive in this kind of market to move in before an earnings report, but if WPI gives us a good upside start on solid trade we can move into some positions and then see how the earnings come out. We have seen that even with some good earnings results that we can get an entry point even if we wait for the earnings to come out so it is a matter of your risk tolerance. Like the pattern and the volume it is showing.
Volume: 1.898M Avg Volume: 1.34M
BUY POINT: $23.55 Volume=1.8M Target=$27.77 Stop=$21.94
POSITION: WPI AX - Jan. $22.50c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/wpi.html
Good Investing!
Jon L. Johnson and the Stock Split Report 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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