us stock market, stock split

Begin Part 2 of 3

THE PLAYS: PDCO continues its great run, and GTK, WRI, GOSHA and CHBS made solid moves!

BONUS PLAYS: HLT, ATMI and CTSH are still set up in their patterns, as are BSX, IFF and NCOG. HDWR looks pretty good as it tests its breakout.

KO (Coca-Cola--$52.02; +0.28; optionable): Soft Drinks
http://biz.yahoo.com/p/k.ko.html
STATUS: In March KO made a strong breakout from a reverse head & shoulders pattern, and the move also took the stock over the late 2001 highs at 50.50. The run peaked last week at 52.68, and since KO has pulled back into a nice, lower-volume handle consolidation to a large cup base dating back to early 2001 (highs at 61). KO is holding support at its 10 day MVA (51.54), today making a bit of a move up on volume that remained below average at 4.73 million (average 4.94 million). Looking good, and we will look for KO to make a breakout. Huge money flow and good buying. Target: 60, but we don't look for it all at once with this one.
BUY POINT: 52.78 on volume of 7.4 million. Stop: 50.50.
POSITION: Stock and/or August $50 calls to buy (KO HJ).

AVP (Avon Products--$55.85; +1.34; optionable): Personal Products. Earnings 4-18.
http://biz.yahoo.com/p/a/avp.html
STATUS: AVP broke out from an ascending wedge in late February, and the highs of that pattern were at the 2000-2001 highs. AVP tested the breakout and bounced nicely from the former pattern highs at 50, and made a solid run up, and has moved in a consolidation for the last two weeks. After testing the 18 day MVA (54.06) a few times in the pattern, today AVP made a strong move up, taking out the former pattern highs at 55.70 as volume popped up to 1.36 million (average 1.06 million). A solid breakout move, and still a buy up to 57.50 with strong volume. Target: 64.
BUY POINT: A buy up to 57.50 on continued strong volume. Stop: 53-53.50.
POSITION: Stock and/or July $50 or $55 calls to buy (AVP GJ or AVP GK).

LGND (Ligand--$19.50; -0.20; optionable): Drug manufacturer
http://biz.yahoo.com/p/l/lgnd.html
STATUS: LGND made a very strong move to end the month of March, breaking from a cup that dated back to the beginning of the year (high was 19). It is now testing the move in a handle consolidation, easing gradually back on lighter volume. Today LGND showed a loose doji, with volume slightly up to 442,400 (average 365,700). A nice pattern and test, and we are looking for the strength to kick back in and push LGND to 24. There is an intraday spike at 20.50, but we are using 20.25 as the breakout point.
BUY POINT: 20.35 on volume of 660,000. Stop: 18.93 (7%).
POSITION: Stock and/or August $17.50 calls to buy (LQP HW).

NFI (Novastar--$19.31; +0.01; optionable): Credit services
http://biz.yahoo.com/p/n/nfi.html
STATUS: NFI has been on a strong and steady trend since the beginning of 2001, rising from 4. It has been a steady move up the 50 day MVA (currently 17.82), and it broke from a saucer with handle in mid-March. The move hit 19.50, and for the last two weeks has formed a wedge, holding the 10 day MVA (19.07) with three consecutive dojis after a bounce off of the 18 day last week. Today volume spiked way up on the doji, coming in at 118,100 (average 40,000). The volume spikes in a lateral consolidation get our attention, and NFI could be ready to make a move. Good buying and relative strength. Target: 23.50.
BUY POINT: 19.60 on continued strong volume (minimum 54,000). Stop: 18.23 (7%).
POSITION: Stock only.

Quick updates prior bonus plays:
TXT - Holding on in the pattern
CEY - Pulling back and setting up an ascending wedge
CF - Still looking like it could move
CECO - Still looking good
MDR - Holding the 18 day on the pullback in its trend
UPS - Fighting to hold the consolidation
MKSI - Quick test of the weak breakout is holding the 18 day for now; we will not hold on strong selling through that level
OO - Has dropped back to test the 50 day

MARKET FAVORITES: CYMI is still set up pretty well. CMOS made a nice move back up over recent highs!

Updates on recent Market Favorites:
MSFT - Put - hit the target
FLEX - Put. Dragging out the lateral pattern under the 50 day
LRCX - Trying to hold on at the 18 day MVA. Selling has been light, and the 50 day is below at 26.

PRE-ANNOUNCEMENT PLAYS FOR THIS WEEK: No announcements forecast for this week, but we have quite a few on the agenda in the weeks following.

NEW PRE-ANNOUNCEMENT PLAY:

KLAC (Kla-Tencor--$65.71; +1.11; optionable): Semiconductor equipment. We are researching a date.
http://biz.yahoo.com/p/k/klac.html
BACKGROUND: Last announced a 2:1 split on 12-16-99 at a price of $93.
STATUS: The chip equipment stocks are some of the best performing tech stocks. KLAC broke out of a reverse head & shoulders in early March, and the stock and its sector have been able to hold up well in a weak market. It hit a breakout high of 70.58, but a pullback has managed to hold the 18 day MVA (65.15). It sold back on light volume this weak, rebounding a bit today on increased volume of 9.86 million (average 10.24 million). Good relative strength, and in an improved market we are looking for KLAC to make another move. Target: 77.
BUY POINT: Aggressive: In a market rally, a move over 67.50 with above average volume. Stop: 62.87 (7%).
POSITION: Stock and/or June $65 calls to buy (CKV FM).

PRE-ANNOUNCEMENT BEST PLAYS: PNRA and STI still in good patterns, and SUI could continue its slow move up.
1) APOL - Looking good going toward the forecast
2) CTAS - Waiting for a definitive move
3) EASI - Still strong
4) GTK - Great move on news

APOL (Apollo Group--$52.09; +0.79; optionable): Forecast to announce a split during the week of April 8 in conjunction with a board meeting. The company will not confirm a date, but based upon our research the board should meet this week.
http://biz.yahoo.com/p/a/apol.html
BACKGROUND: Last announced a 3:2 split on 1-10-01 in conjunction with a board meeting. The stock price was $50. The company has sufficient shares for a 2:1 split.
STATUS: APOL has made nice, steady progress along its 50 day MVA since its last split, bringing it back in range. After falling back from an attempted breakout from a cup in March, APOL continued to hold the 50 day, and made a strong bounce toward the end of March that hit a 54.33. It has pulled back, but is holding the 10 day MVA (51.38) and the range of its early March high (52, made on the breakout attempt). Today it pushed back up from the 10 day as volume dipped slightly to 1 million (average 943,500). Looking strong and showing good action, and perhaps it will consolidate a bit more here before making the next move. Target: 62.
BUY POINT: From here or after a continued hold at this level, a bounce over 53.20 on increased volume. Stop: 49.57.
POSITION: Stock and/or August $50 calls to buy (OAQ HJ).

CTAS (Cintas--$49.36; +0.45; optionable): Working on a new date.
http://biz.yahoo.com/p/c/ctas.html
BACKGROUND: Last announced a 3:2 split on 1-18-00 in conjunction with a board meeting. The stock price was $54. The annual shareholder meeting was on 10-25-00 at which time additional shares were authorized.
STATUS: CTAS has been making higher lows and lower highs since the beginning of 2001, forming a very large pennant. The stock is now battling to get over December-February highs that are at the level of the long-term down trendline. It is back in the range of its January consolidation, having battled back up from February lows near 43. Holding the 50 day MVA (48.25), tapping down to the level on several recent sessions at its intraday lows. The pattern formed over the last few weeks is a pennant on low volume (steady today at 743,400; average 972,400). Has shown some intraday volatility, so we are looking for a definitive move. Targeting 60.
BUY POINT: Over 51 on volume of 1.5 million. Stop: 48.
POSITION: Stock and/or August $45 calls to buy (NQQ HI).

EASI (Engineered Support--$47.60; +0.67; optionable): Aerospace/Defense. Forecast to announce a split the week of 5-27-02 with earnings.
http://biz.yahoo.com/p/e/easi.html
BACKGROUND: EASI last announced a 5:4 split on 2-1-2001 with a board meeting at a price of $28.50. Before that it announced on 6-12-98 at a price of $26.50. The company has sufficient shares for a 3:2 split.
STATUS: EASI made a strong move Monday, breaking from the upward-sloping handle to its cup pattern. After that promising move it immediately showed a high volume doji, and off of that topping sign EASI pulled back. However, the pullback was on much lower volume, and today EASI showed a loose doji at the former handle high, tapping its 10 day MVA (46.41) at its low. It has been a nice, steady move up the short-term MVA's as the stock builds the right side of its base, and we will look for EASI to take a bounce so we can add to positions on the continued run. On a strong move the target is adjusted to 56.
BUY POINT: Bounce: New or additional positions on a move over 48.50 on volume of 270,000 or better (today 208,000; average 218,000). Stop: 45.20 (7%).
POSITION: Stock and/or August $45 calls to buy (UFE FI - 57 open interest).

GTK (Gtech Holdings--$51.56; +4.76; optionable): Software
http://biz.yahoo.com/p/g/gtk.html
BACKGROUND: Based upon our research it does not appear that GTK has ever split its stock. The annual shareholder meeting was on 7-9-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: GTK ran 40% on its cup with handle breakout in the last quarter of 2001, but it topped at 55.24 and on the drop back formed a bearish head and shoulders pattern. It broke down from that pattern this week, but after a gap down Wednesday the earnings announcement this morning was very well received, and GTK gapped up and pushed back over its 50 day MVA (49.25). Volume was huge (1.54 million; average 331,600) as the stock closed just over the high in the left 'shoulder' (51.48). A strong reversal, and if it can hold over the shoulder highs, we will look for a momentum run back up toward the high and beyond. Target: 60.
BUY POINT: Aggressive momentum: Over 52.10 on continued strong volume. Stop: 49.
POSITION: June $47.50 calls to buy (GTK FW).

PRE-SPLITS BEST PLAYS: NDN has a good pattern going into the split, and MKC and PMI continued to show strength.
Remember, we try to grab Pre-Splits as they break out of good patterns or as they start a run right before the split. Not looking for home runs, but looking for those $3 to $4 moves running into the split, watching for topping signs and potential resistance. Not huge money, but it can be very steady. We set our initial stops at the 7-8% range below the purchase price (or just below obvious support), and move them up on a move to preserve our profits.
1) AMAT - Still holding up well
2) DF - Nice consolidation

AMAT (Applied Materials--$54.10; +0.91; optionable): Splits 2:1 on or about 4-17-02.
http://biz.yahoo.com/p/a/amat.html
STATUS: Since its surprise split announcement, AMAT has continued to hold up as it trends along its 18 day MVA. Today AMAT touched back toward that level (52.10), but managed to push back up again. Relative strength is very strong, and with a reversal in the Nasdaq it could be one that makes a really good move. In a stronger market we will look for a push over the recent high 55.90 and a move up to 62.
PLAY: In a strong Nasdaq, a move over 55, with stock and/or May $50 calls to buy (ANQ EJ).

DF (Dean Foods--$75.52; -0.18; optionable): Splits 2:1 effective 4-24-02.
http://biz.yahoo.com/p/d/df.html
STATUS: DF has made a nice, steady trend up, breaking from a December-March cup with handle in the process. It has made a couple of surges from the short-term MVA's on the run, and now has pulled laterally and slightly back with five consecutive dojis, and it has almost intersected with the 10 day again. Looking for another jump from that level. Great relative strength. We were targeting 80, but on a strong move from here will adjst to 84.
PLAY: On a move over 76.65, June $70 calls to buy (DF FN).

CONTINUING CANDIDATES BEST PLAYS: THC continued up strong.
1) DIAN - Great move!
2) TGH - Still in the ascending wedge
3) HB - Good consolidation

DIAN (Dianon Systems--$67.85; +4.42; optionable):
http://biz.yahoo.com/p/d/dian.html
BACKGROUND: Based upon our research it does not appear that DIAN has ever split its stock. The annual shareholder meeting was on 10-25-00 at which no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Super move! Recently DIAN made a solid move back up from 55, and over the past few sessions had settled back a bit on light volume, holding support at the December high and short-term MVA's at 62.50. Off of yesterday's doji, DIAN blasted up today on huge volume (433,000; average 248,000), making a new high at 68.03, as well as a new closing high. Targeting 76 on this breakout.
BUY POINT: Still a buy up to 69 on continued strong volume. Stop: 63.10-64.15.
POSITION: Stock and/or August $65 calls to buy (UID HM).

TGH (Trigon Healthcare--$73.44; +0.41; optionable):
http://biz.yahoo.com/p/t/tgh.html
BACKGROUND: Based upon our research it does not appear that TGH has ever split its stock. The annual shareholder meeting was on 4-25-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Still in the ascending wedge. TGH gave us a nice move out of a breakout from a cup with handle in January, stopping short of its high of 81.50 at its February high of 79. It corrected back but has made a move back over the 50 day MVA (72.16). It retested the 50 day last week, but bounced back, setting up an ascending wedge after tapping the March high and pulling back slightly the last couple of sessions. Today TGH moved up just slightly as volume remained very low at 71,100 (average 205,300). Looking for a breakout move. Targeting 85, watching the high on the way.
BUY POINT: 74.40 on volume of 275,000. Stop: 70.25.
POSITION: Stock and/or July $70 calls to buy (TGH GN - low open interest).

HB (Hillenbrand--$61.33; +0.43; optionable): Personal services
http://biz.yahoo.com/p/h/hb.html
BACKGROUND: Based upon our research it does not appear that HB has ever split its stock. The company has sufficient shares for a 2:1 split.
STATUS: Hanging in there, forming a nice handle-type consolidation. HB fell out of its February pennant pattern, but caught the 50 day MVA (59.09) and has made a good move up from that support, forming an 8-week saucer. It broke to a new high last week (taking out the left side high), but has pulled back into a handle, dipping on light, decreasing volume. It has caught support at the 10 day MVA (60.96), today pushing back up slightly from that level on volume of 52,000 (average 153,000). Looking for a continued hold and a strong move over the recent high. Target on a strong move is 72.
BUY POINT: 62.33 on volume of 225,000. Stop: 58.50.
POSITION: Stock and/or June $60 calls to buy (HB FL).

POST-SPLITS BEST PLAYS:
1) BSG - Poised to bounce
2) CHBS - Nice move on news

BSG (Bisys Group--$34.72; -0.05; optionable): Business services
http://biz.yahoo.com/p/b/bsg.html
STATUS: We have followed BSG as it has made a nice, steady trend up post-split. The stock broke from a reverse head & shoulders in December, and after a test back, broke back over the January high in early March and has trended nicely along the short-term MVA's. Following its last move up, BSG has made a nice retreat on low volume back to the 10 day MVA (34.71), showing a doji today on continued low volume of 444,100 (average 484,100). Looking good, and we can add to positions or take new ones on a bounce. Targeting 39.
PLAY: On a bounce over 35.25 with volume of 500,000 or better, June $32.50 calls to buy (BSG FF). We can also add to stock positions.

CHBS (Christopher & Banks--$34.40; +4.54; optionable): Apparel stores
http://biz.yahoo.com/p/c/chbs.html
STATUS: Great move! CHBS hadas taken a dive with the recent retail weakness, although selling volume was not high, even as it gave up the 50 day MVA (30.40) to close Wednesday. On solid sales news and an upgrade today, CHBS reversed abruptly, gapping back over the 50 day and running past its most recent high (33.87). It closed right at its January highs and just below the all-time high of 35.76, as volume skyrocketed to 1.5 million (average 465,500). The pattern is something of a reverse head & shoulders, although the right shoulder has formed with today's abrupt move. It could rest a bit here, which would be fine if it holds the 34 range, setting up a move to a new high. On that move, adjusting the target to 41.
PLAY: From here or after a rest that holds the 34 range, over 34.95 on continued strong volume. Stock and/or June $30 calls to buy (URH FF - low open interest).

End Part 2 of 3

us stock market
stock split