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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 11/11/2008
ADM (Archer Daniels Midland--$24.16; +0.59; optionable): Corn, farm products
http://biz.yahoo.com/p/a/adm.html
EARNINGS: Announced 11-4-08
STATUS: Trend reversal. ADM was one of those corn stocks that rallied on the ethanol hype, and then it sold off after the hype died. After a 6 month downtrend ADM reversed at the end of the month, clearing the 50 day EMA (21.85) on the move. It tested then gapped higher to start November on solid earnings. It fell again Thursday but was right back up. Solid test of the trend reversal and ready to move in as ADM makes the break higher and continues the reversal off the downtrend.
Volume: 9.529M Avg Volume: 9.294M
BUY POINT: $24.48 Volume=1.2M Target=$29.95 Stop=$22.77
POSITION: ADM AX - Jan. $22.50c (67 delta) or ADM CE - Mar. $25c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/adm.html
Play Date: 11/11/2008
ALXN (Alexion Pharmaceuticals--$40.70; -1.05; optionable): Drugs
http://biz.yahoo.com/p/a/alxn.html
EARNINGS: Announced 10-23-08
STATUS: Double bottom w/handle. ALXN is in a volatile but solid 3.5 month pattern formed using the 200 day SMA (36.77) as support. Matching the 2000 high, forming a nice base over important support setting it up for a new breakout. Set up again so we will see if it can give us the breakout move.
Volume: 640.506K Avg Volume: 1.401M
BUY POINT: $42.55 Volume=1.8M Target=$49.95 Stop=$39.94
POSITION: XQN BV - Feb. $42.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/alxn.html
Play Date: 11/11/2008
FDO (Family Dollar Stores--$27.71; +0.48; optionable): Discount variety stores
http://biz.yahoo.com/p/f/fdo.html
EARNINGS: Announced 10-3-08
STATUS: Reverse head and shoulders. FDO is working its way out of a 16 month base, forming the current 10 week pattern that is setting up a further breakout. Some very solid upside volume and a very good upside session Tuesday. Sign of the time when the discounters are outperforming; we all have to buy somewhere and when things are as bad as they are and will get, discounters provide a much needed service. FDO will provide us an additional much needed service as well, i.e. making us some money with a breakout move.
Volume: 4.634M Avg Volume: 3.845M
BUY POINT: $28.25 Volume=5M Target=$33.95 Stop=$26.27
POSITION: FDO AY - Jan. $27.50c (57 delta) or FDO DY - Apr. $27.50c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/fdo.html
Play Date: 11/11/2008
LHCG (LHC Group--$32.45; -0.31; optionable): Home health care
http://biz.yahoo.com/p/l/lhcg.html
EARNINGS: Announced 10-29-08
STATUS: Breakout test. Big breakout surge in late October on LHCG's earnings. The move took it out of a 19 month double bottom with handle base. The surge took it to a new all-time high and now it is testing. Big volume on the breakout, much lower volume on the test, coming back to the 10 day EMA (31.89) the past week, moving laterally as the 10 day rose to meet it. Strong money flow with all of the action. Nice doji Tuesday tapping the 10 day EMA on the low. Looking to move in as LHCG makes the next break higher and continues the breakout move.
Volume: 343.66K Avg Volume: 308.011K
BUY POINT: $32.91 Volume=400K Target=$39.75 Stop=$31.42
POSITION: HQC CF - Mar. $30c (68 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/lhcg.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 investment information
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