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stock recommendation, stock investment information
Begin Part 2 of 2
THE PLAYS:
NEW PLAYS:
WL (Wilmington Trust--$66.00; +0.95; optionable): Regional bank
http://biz.yahoo.com/p/w/wl.html
STATUS: Put. Some regional banks are getting winded after outperforming the market. WL is one of those. It hit a high near 70 in March, fell back to the 50 day MVA, and then double topped with a low volume April high just below March's. That is bad. Monday it tanked below the 50 day MVA on huge volume. That is really bad. Today it tested the 50 day MVA on the high (66.62) and then fell back. Volume was still above average, but lower (124K; avg. is 76K). We like to see lower volume tests of a breach of support. We also like to see selling entering in on a double top, and that is what has been creeping in the past few sessions.
BUY POINT: 65.50 on volume of 175K or more. Target=62 (200 day MVA); 60 if that breaks. Stop=67.
POSITION: August 75p to buy (WL TO; no OI now, but 76 delta).
http://www.investmenthouse.com/cd/wl.html
MAR (Marriott--$45.49; +0.29; optionable): Lodging
http://biz.yahoo.com/p/m/mar.html
STATUS: Ascending wedge. Hotels and casinos are doing well. MAR is not into casinos, but we like the pattern. Heading into 9-11 it was falling hard, but recovered to the 200 day MVA where it formed a new base. It broke out of that base and over the 200 day MVA in early march. Since then it has formed an ascending wedge with volume below average for most of the base (894K; avg. is 1.15 million). Relative strength has already broken out ahead of the stock on this move, beating the high last summer when the stock was at $50. Bullish sign.
BUY POINT: 46.05 on volume of 1.5 million+. Target=55.25. Stop=42.80
POSITION: Stock and/or October 40c to buy (MAR JH).
http://www.investmenthouse.com/cd/mar.html
WDC (Western Digital--$7.06; -0.08; optionable): PC data storage.
http://biz.yahoo.com/p/w/wdc.html
STATUS: Cup w/handle. Yes, tech, but it is a great pattern with great buying and money flow, and price/volume action is superb. It is currently in the handle, pulling back on below average volume (996,100; avg. is 1.7 million). Maybe this is the start of long, profitable recovery, maybe it is just a pattern we can make a nice gain on in the short run. The pattern is solid and we will see where it takes us.
BUY POINT: 7.65 on volume of 2.50 million. Target=9.70. Stop=7.10.
POSITION: Stock and/or October 5c to buy (WDC JA).
http://www.investmenthouse.com/cd/wdc.html
New from Monday:
AMMD gave us the high volume breakout!
BRO (Brown & Brown--$34.57; -0.08; optionable): Surety and title insurance
http://biz.yahoo.com/p/b/bro.html
STATUS: Cup w/handle. Tightening in the handle, showing another doji on slightly rising volume (181K; avg. is 390K). Good price/volume action.
BUY POINT: 35.63 on volume of 585K+. Target=42.75 (new high territory). Stop=32.95.
POSITION: Stock and/or September 30c to buy (BRO IF; low OI for now, but delta of 80).
http://www.investmenthouse.com/cd/bro.html
GWW (W.W. Grainger--$54.61; -0.34; optionable): Wholesale Electronics
http://biz.yahoo.com/p/g/gww.html
STATUS: Breach of 50 day MVA. Low volume test of the 50 day MVA on the high (55.79), and then fell. Volume did not leap up, but we like to see lower volume on the test (343K; avg. is 457K). Ready to make the fall after this test.
BUY POINT: 53.95 after a test of the 50 day MVA (55.71) on volume of 500K or better. Target=50. Stop=56.
POSITION: July 60p to buy (GWW SL; low OI, Delta 76)
http://www.investmenthouse.com/cd/gww.html
CONTINUED PLAYS:
New from Weekend Report:
DVA (Davita $25.89; 0.00; optionable): Specialized health services
http://biz.yahoo.com/p/d/dva.html
STATUS: Flying plateau. Holding tight on very low volume (224K; avg. is 650K). Giving a bit of the pullback, hitting 25.77 on the low.
BUY POINT: 26.05 on volume of 800K. Target=31.25 (initial). Stop=24.25.
POSITION: Stock and/or October 22.50c to buy (DVA JX).
http://www.investmenthouse.com/cd/dva.html
ESI (ITT Educational--$50.20; +0.65; optionable): Education and Training
http://biz.yahoo.com/p/e/esi.html
STATUS: Successful test of breakout. Got the volume today on the move higher (297K; avg. is 134K). Aggressive can still take positions here as it moves over its breakout high.
BUY POINT: New positions/add-to: up to 50.50 on continued strong volume. Target=56.75 (initial). Stop=46.20.
POSITION: Stock and/or October 45c to buy (ESI JI; low OI currently).
http://www.investmenthouse.com/cd/esi.html
BASING/TRADING RANGES:
BYBI (Back Yard Burgers--$8.52; +0.22; no options): Restaurants
http://biz.yahoo.com/p/b/bybi.html
STATUS: Cup with handle. Tried to make the breakout move today, jumping to 9.40 on the high (9.55= breakout), but then rolled back down into the handle. Volume was huge (117K; avg. is 46,600). Never like to see these breakouts fall back so fast, but we will let it reload and then wait for the breakout. The price/volume action in this pattern shows heavy accumulation, and the money flow is excellent.
BUY POINT: Aggressive: 8.85. Breakout: 9.55 on volume of 100K+. Target=11.50 (initial). Stop=8.15.
POSITION: Stock
http://www.investmenthouse.com/cd/bybi.html
Run to 100:
XL (XL Capital--$94.91; -0.03; optionable): P&C insurance
http://biz.yahoo.com/p/x/xl.html
STATUS: Run to $100. Big shot of volume as XL moved up to 96.27 on the high and then pulled back to close basically flat. Volume spiked on the move (1.8 million; avg. is 830K). In this situation, we like the volume spike and are looking for the stock to follow this move higher.
BUY POINT: 95.55 (moved from 96.55) on volume of 900K or better. Target: 102. Stop=94
POSITION: We are looking at options on this one as it is high priced and the move is limited. July 90c to buy (XL GR).
http://www.investmenthouse.com/ct/xl.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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.
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stock recommendation
stock investment information
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