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us stock market, trend trading stock
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 10/29/2008
CMC (Commercial Metals--$11.33; +1.30; optionable): Steel and iron
http://biz.yahoo.com/p/c/cmc.html
EARNINGS: 10-30-01 before the open
STATUS: Double bottom. Nice gain on nice volume Wednesday as CMC rallied up past the hump in its 4 week double bottom, clearing the 18 day EMA (11.22) on the close, holding it despite the selling in the market late in the session. Very solid base has set up and looking for earnings to help push CMC higher. If it gaps up we look for a test; we may not get the entry Thursday but we want to be ready if it gives us an intraday test that gives us an opening to pick up some positions. Short but very solid base at the bottom of the 4 month trend lower.
Volume: 3.94M Avg Volume: 2.853M
BUY POINT: $11.48 Volume=3.5M Target=$16.45 Stop=$10.57
POSITION: CMC AB - Jan. $10c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/cmc.html
Play Date: 10/29/2008
EWBC (East West Bancorp--$15.52; +0.36; optionable): Regional banks
http://biz.yahoo.com/p/e/ewbc.html
EARNINGS: Announced 10-27-08
STATUS: Gapped higher Tuesday after the earnings announcement. The move took it over the 200 day SMA (14.88). A bit volatile Wednesday, but it held above the 200 day on the close, adding some to its gain. It has bounced up and down in a 3 month trading range formed after breaking higher starting July after the June 2007 to July downtrend. Nice consolidation at a higher level that sets the stage for a new upside run by EWBC. Volume started up the past two sessions, rising above average. Looking for EWBC to make the breakout for us.
Volume: 1.793M Avg Volume: 1.515M
BUY POINT: $16.09 Volume=2M Target=$19.65 Stop=$14.96
POSITION: EOQ AW - Jan. $15c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/ewbc.html
Play Date: 10/29/2008
GOOG (Google--$358.00; -10.75; optionable)
http://biz.yahoo.com/p/g/goog.html
EARNINGS: Announced 10-16-08
STATUS: Trend reversal. GOOG is showing some interesting action the past three weeks following a 6 month downtrend. It made a higher low last week, holding the early October closing low, showing some solid above average volume Tuesday as it bounded higher. It hit the 18 day EMA (363.31) and moved through Tuesday, but then slipped Wednesday to close at the 10 day EMA. Like this double bottom with the higher low with some rising volume along the way. Just waiting for GOOG to make the next break higher. Very interesting.
Volume: 9.764M Avg Volume: 5.999M
BUY POINT: $364.11 Volume=9M Target=$399.75 Stop=$351.85
POSITION: GGD LL - Dec. $360c (53 delta) or GGD AN - Jan. $370c (49 delta)
http://www.investmenthouse.com/ci/goog.html
Play Date: 10/29/2008
XTO (XTO Energy--$32.99; +0.89; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: 11-5-08
STATUS: Double bottom w/handle. Held out until July and then tumbled lower as the sellers hit XTO as well. Held the line August to late September, but could not clear the 200 day SMA up at 55 and tumbled again. Found bottom with the Dow in early October and set up the current double bottom with handle, moving laterally the past week on much lower, below average volume. That is forming the handle, and Wednesday XTO gapped higher and tried the breakout, but it slid back into the close. Like the pattern and the upside space and looking for a solid break higher on solid trade to move in.
Volume: 13.436M Avg Volume: 15.217M
BUY POINT: $34.31 Volume=20M Target=$40.95 Stop=$32.78
POSITION: XTO AF - Jan. $30c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
New buy point on current position:
Play Date: 10/29/2008
STLD (Steel Dynamics--$11.15; +1.08; optionable): Steel and iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: Announced 10-15-08
STATUS: Double bottom w/handle breakout. Excellent volume Wednesday as STLD broke to a new high on this move. After a tumble July to early October STLD formed a double bottom, broke higher just over a week back, and then formed a lateral handle. Short base but a lot of action. Solid breakout move Wednesday and ready to add to positions as it continues.
Volume: 12.275M Avg Volume: 8.222M
BUY POINT: $11.65 Volume=9M Target=$15.65 Stop=$10.45
POSITION: RQL AB - Jan. $10c (71 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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us stock market
trend trading stock
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