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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 10/28/2008
DO (Diamond Offshore--$76.26; +7.35; optionable): Offshore drilling
http://biz.yahoo.com/p/d/do.html
EARNINGS: Announced 10-23-08
STATUS: Double bottom. Calling this a double bottom but it is a nice rounded bottom no matter what you call it. Good earnings that did not wreck it, and it continued to set up and started breaking higher Tuesday on a return of strong, above average volume. It has put in a nice pattern and is breaking higher. There is a gap lower back up near 90 and we are looking for DO to move up to fill that gap.
Volume: 2.862M Avg Volume: 2.299M
BUY POINT: $76.42 Volume=3.2M Target=$91.00 Stop=$73.88
POSITION: DO LO - Dec. $75c (55 delta, 62 OI) &/or Stock
http://www.investmenthouse.com/ci/do.html
Play Date: 10/28/2008
ECA (Encana Corp.--$43.71; +4.20; optionable): Independent oil and gas
http://biz.yahoo.com/p/e/eca.html
EARNINGS: Announced 10-23-08
STATUS: Trend reversal. ECA is making a higher low over the earlier October lows, showing some good upside volume the past week. Excellent set up to run higher from here and fill the tap near 55. May go past that closer to 60 but that is a good starting point for this run from a nice pattern.
Volume: 6.98M Avg Volume: 6.035M
BUY POINT: $43.91 Volume=9M Target=$54.00 Stop=$40.84
POSITION: ECA AH - Jan. $40c (62 delta) &/or stock
http://www.investmenthouse.com/ci/eca.html
Play Date: 10/28/2008
HBAN (Huntington Bancshares--$11.00; +1.83; optionable): Regional banks
http://biz.yahoo.com/p/h/hban.html
EARNINGS: Announced 10-16-08
STATUS: Trend reversal. Nice when the earnings are out of the way and a stock is ready to move higher. HBAN reversed a 12 month downtrend in September, surging nicely. It then got caught in the October selling, falling back and forming something of a 6 week reverse head and shoulders base. Good bounce this week with a strong move Tuesday, breaking over some interim highs. A bit more volume would be nice, but HBAN is showing excellent action.
Volume: 9.197M Avg Volume: 9.819M
BUY POINT: $11.21 Volume=12M Target=$13.94 Stop=$10.43
POSITION: HQB AB - Jan. $10c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/hban.html
Play Date: 10/28/2008
MON (Monsanto--$83.15; +12.06; optionable): Agricultural chemicals, etc.
http://biz.yahoo.com/p/m/mon.html
EARNINGS: Announced early October
STATUS: Double bottom. Good shot of above average volume Tuesday as MON gapped higher off the second bottom in its 4 week pattern. Looking for this leader on the run through October to rally up to some resistance at 100 as an initial target on this move. Nice set up and starting its bounce.
Volume: 12.782M Avg Volume: 9.917M
BUY POINT: $83.41 Volume=12M Target=$98.00 Stop=$79.22
POSITION: MON AP - Jan. $80c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/mon.html
Downside: Just to be ready.
Play Date: 10/28/2008
DXD (ProShares DJ30 UltraShort ETF--$75.20; -21.47; optionable)
STATUS: We think there is quite a bit more mileage in the current upside move that just started even with this huge run higher. This is still a very volatile market, however, and given the rapid turns in the market we will be ready with a downside play on the DJ30 if this market move turns over.
Volume: 17.755M Avg Volume: 9.872M
BUY POINT: $73.88 Volume=1.5M Target=$85.00 Stop=$72.94
POSITION: DZS LW - Dec. $75c (54 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/dxd.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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stock recommendation
stock market recommendation
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