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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Upside: Looking for a reversal after opening lower once more.
Play Date: 11/12/2008
DIA (Diamonds Trust (DJ30 EFT)--$83.09; -3.66; optionable)
STATUS: Rebound. Expecting the Dow to drop hard on the open and test toward the late October closing low (80.26 for DIA). It is holding up better than the other indices so we are looking at the Dow and thus DIA to hold near that low and spark the rebound. Looking to ride the rebound with the Diamonds.
Volume: 35.816M Avg Volume: 33.387M
BUY POINT: $80.65 Volume=500M Target=$89.92 Stop=$79.55
POSITION: DIJ AB - Jan. $80c &/or Stock
http://www.investmenthouse.com/ci/dia.html
Play Date: 11/12/2008
HMSY (HMS Holdings--$25.30; +0.28; optionable): Cost containment & payment accuracy services for government sponsored health and human services programs
http://biz.yahoo.com/p/h/hmsy.html
EARNINGS: Announced 10-31-08
STATUS: Double bottom w/handle. HMSY has formed a 7 week base at what looks to be the end of a larger 11 month double bottom with handle. Kind of a double bottom with handle within a double bottom with handle. Strong rally to end September and into early October. Then it slipped into the current week long lateral move just over the 200 day SMA (24.70). Quiet volume and then a jump to above average Wednesday somewhat out of the blue. This is a great stock for the current spendthrift government and likely with even more spending to come. Nice set up, one of the few stocks that has formed up a base in the selling. It also has great fundamentals growth rates. Good action in a weak market Wednesday, and some more solid volume on the upside makes it a buy.
Volume: 323.029K Avg Volume: 250.241K
BUY POINT: $25.84 Volume=375K Target=$29.95 Stop=$24.62
POSITION: QHT CE - Mar. $25c (61 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/hmsy.html
Play Date: 11/12/2008
LMNX (Luminex--$21.62; -0.67; optionable): Medical instruments
http://biz.yahoo.com/p/l/lmnx.html
EARNINGS: Announced 11-6-08
STATUS: Gapped higher and out of its 5 week reverse head and shoulders pattern. Cleared the 200 day SMA (20.48) on the move and is now testing, coming back on very light, below average volume to hold just over the 50 day SMA (21.34). Looking for this test to hold and then break higher once more on volume. That is our entry time. This base formed after the March breakout from a 1.5 year double bottom with handle base. Super money flow is leading higher ahead of price even as LMNX tests on this pullback. Another one of the few stocks that has held up and used the selling to its advantage to consolidate and set up the next move.
Volume: 292.851K Avg Volume: 393.977K
BUY POINT: $22.55 Volume=500K Target=$26.95 Stop=$21.11
POSITION: UQV AX - Jan. $22.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/lmnx.html
Play Date: 11/12/2008
SPY (S&P Depository Receipts--$85.82; -3.95; optionable)
STATUS: Trend reversal. SPY is ready to test the prior low (83.58) on the open as SP500 sells off on the INTC news. It may undercut that level, may not. What we are looking for after the test is a recovery from this week of tail kicking selling that just so happened to take SPY down to the prior lows. We then look to ride it up as far as it will go. Our initial target is just that, an initial target. We will see how much strength the move has as it gets underway.
Volume: 453.354M Avg Volume: 385.529M
BUY POINT: $84.24 Volume=450M Target=$93.95 Stop=$83.32
POSITION: SZC AF - Jan. $84c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/spy.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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