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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
New Plays
Upside: Showing a lot of strength off the low.
Play Date: 11/19/2008
RIMM (Research in Motion--$45.33; -1.92; optionable): Blackberries
http://biz.yahoo.com/p/r/rimm.html
EARNINGS: 12-18-08
STATUS: Double bottom. RIMM is showing relative strength this month versus most techs. It just undercut the October low last week but rebounded nicely. Solid volume as it moved higher. Moved up to the 18 day EMA (47.81) Tuesday on strong, above average volume, then faded modestly Wednesday on lower volume, closing near the 10 day EMA (45.55). Looking for RIMM to hold near the 10 day and resume the break higher. Strong volume on the move is what we want to see.
Volume: 33.798M Avg Volume: 30.305M
BUY POINT: $48.08 Volume=40M Target=$57.95 Stop=$44.91
POSITION: RFY AI - Jan. $45c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/rimm.html
Downside: Some plays that just broke lower and still have plenty of downside room
Play Date: 11/19/2008
LH (Laboratory Corp.--$60.36; -3.24; optionable): Medical labs
http://biz.yahoo.com/p/l/lh.html
EARNINGS: Announced 10-23-08
STATUS: Put. LH spent 6 weeks recovering from the late September to October tumble lower. That selloff was on pretty low volume, but that didn't stop LH from losing over 20 points. The rebound took LH back up to the 50 day EMA (64.16) last week. Tried the move through but reversed on high volume. Held through Tuesday but then cratered Wednesday. Volume wasn't great, but as noted, LH sold last time on low trade. Might try to bounce off the Wednesday selling before heading lower, but last time it made this kind of break lower it did not surface upside for awhile. A move to the target lands a 45%ish gain.
Volume: 1.238M Avg Volume: 1.402M
BUY POINT: $60.07 Volume=1.5M Target=$56.00 Stop=$61.33
POSITION: LH XL - Dec. $60p (-40 delta)
http://www.investmenthouse.com/ci/lh.html
Play Date: 11/19/2008
TRV (The Travelers Companies--$37.29; -4.10; optionable): P&C insurance
http://biz.yahoo.com/p/t/trv.html
EARNINGS: Announced 10-22-08
STATUS: Put. Tried to break the downtrend last week but stalled near the 90 day SMA (41.85) and Wednesday TRV was traveling lower with a sharp downside break on lower but still strong, above average volume. After a big break any stock may try a modest bounce, but if TRV continues to the downside we will look at taking some positions as this was a sharp break lower. Then if it tests some we can add more when it stalls and starts to backslide again. A move to the target lands a 40%ish gain.
Volume: 8.045M Avg Volume: 6.292M
BUY POINT: $36.97 Volume=8.2M Target=$32.55 Stop=$38.12
POSITION: TRV XH - Dec. $40p (-50 delta)
http://www.investmenthouse.com/ci/trv.html
Continuing Plays:
Play Date: 11/18/2008
DIA (Diamonds Trust (DJ30 EFT)--$80.36; -3.98; optionable)
STATUS: Test lows. Sold toward the 2008 low but DJ30 was the only index to hold the prior lows Wednesday. May be a long shot, but DJ30 could pull an SP500 from October 2002 and lead the market back by holding the lows. If it does hold and bounces we will look to add more positions.
Volume: 49.751M Avg Volume: 35.071M
BUY POINT: New: $80.77 (orig. $83.78) Volume=500M Target=$89.92 Stop=$81.78
POSITION: DIJ AC - Jan. $81c &/or Stock
http://www.investmenthouse.com/ci/dia.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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