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stock share, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 06/10/2009
BJS (BJ Services--$15.58; +0.08; optionable): Oil and gas services
http://biz.yahoo.com/p/b/bjs.html
After Hours: $15.80
EARNINGS: 04/21/2009
STATUS: Pennant. Lots of option activity in BJS Wednesday and the share volume jumped as well, moving easily above average for the first time in three weeks. Good price/volume action as BJS reached lower to some support at 15 on the intraday low and snapped back to flat. That keeps it in the 5 week pennant formed following the mid-April breakout from a 4.5 month base. Surged to 1y on the breakout run and then formed this pattern to consolidate and set up for the next break higher. Looking for some more solid volume as BJS bounces up off of this test of the low in the pattern. Very nice set.
Volume: 10.276M Avg Volume: 8.81M
BUY POINT: $16.04 Volume=12M Target=$19.88 Stop=$14.92
POSITION: BJS JC - Oct. $15c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/bjs.html
Play Date: 06/10/2009
CELG (Celgene--$43.23; -1.02; optionable): Biotech
http://biz.yahoo.com/p/c/celg.html
After Hours: $43.55
EARNINGS: 04/30/2009
STATUS: Flag. Biotechs have been making the attempt to set up the past few months, and as they look decent and with all of the liquidity looking for homes you have to surmise that money will move their way. CELG surged up off the lows from April and May the last week of May, clearing the April gap down. The past week it has tested that move, coming back to the April peak at 43ish as well as tapping the 50 day EMA (42.54) on the Wednesday low and bouncing back. The 50 day stopped CELG in that April move and then a bounce in early May. This time it blew on through and this test should set that as support and give CELG the platform to make the move higher.
Volume: 5.063M Avg Volume: 6.373M
BUY POINT: $43.55 Volume=7.8M Target=$49.95 Stop=$42.38
POSITION: LQH JH - Oct. $40c (68 delta) or LQH JB - Oct. $42c (60 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/celg.html
Play Date: 06/10/2009
ISRG (Intuitive Surgical--$159.72; +2.96; optionable): Medial appliances
http://biz.yahoo.com/p/i/isrg.html
After Hours: $159.38
EARNINGS: 04/16/2009
STATUS: Reverse head and shoulders. Cramer said it was time to sell ISRG the other day so that means it is likely a good time to buy. ISRG surged off the bottom of its selloff in early April. A nice 3 month bump along the bottom and then a strong surge on strong volume. Rallied up to the 200 day SMA (now at 151.83) and faded. Then to start June it broke through and then spent the past week testing, all the while holding at the descending 200 day. Tuesday it moved up off that level and Wednesday it gapped higher, tested, and recovered. It could test some more but like the higher close and if it continues upside it is time to move in. This one can fly.
Volume: 1.065M Avg Volume: 1.482M
BUY POINT: $160.33 Volume=2M Target=$184.45 Stop=$150.68
POSITION: AXV JL - Oct. $160c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/isrg.html
Downside:
Play Date: 06/10/2009
BJ (BJ Wholesale Club--$33.24; -0.50; optionable): Discount variety stores
http://biz.yahoo.com/p/b/bj.html
After Hours: $33.42
EARNINGS: 08/19/2009
STATUS: Island gap reversal. Retail sales are out Thursday and BJ is avoiding the Christmas rush, selling off ahead of the report. BJ gapped higher in early May, tried to move higher but stalled at the December 2008 peak. It faded, tried to hold support at 36, but gapped lower last Thursday, closing just below the 200 day SMA (33.82). Another attempt to hold support but that failed Wednesday as BJ sold on rising volume, making a new closing low after the gap lower. Ready to move in as BJ continues lower. A move to the target lands a 60%ish gain.
Volume: 1.45M Avg Volume: 1.773M
BUY POINT: $33.08 Volume=1.8M Target=$30.61 Stop=$34.62
POSITION: BJ SG - July $35p (-65 delta)
http://www.investmenthouse.com/ci/bj.html
Play Date: 06/10/2009
DRI (Darden Restaurants--$33.85; -0.74; optionable): Restaurants
http://biz.yahoo.com/p/d/dri.html
After Hours: $33.86
EARNINGS: 06/23/2009
STATUS: Head and shoulders. Gapped higher in mid-March on its earnings, rallied, but absolutely no volume. Indeed volume remained below average for most of the ensuing 3 months. A low volume new high is not good news. It started to fold up and formed this 3 month head and shoulders or umbrella top. Tested and held the gap in May with a double bottom but it failed at 37.50 resistance and has slid back, gapping below the 50 day EMA (34.99) Monday on the first above average volume in 1.5 months. A quick test of the 50 day Tuesday and Wednesday and reversing the gap higher Wednesday to make a new closing low on this leg of the selling. Looking to move in as DRI continues lower. It can still hold at 32.50, the gap up point, but this has set up to fail and we are willing to enter into this play before it breaks below that level. A move to the target lands a 65%ish gain.
Volume: 1.86M Avg Volume: 3.579M
BUY POINT: $33.61 Volume=3.7M Target=$30.55 Stop=$35.32
POSITION: DRI SN - July $34p (-55 delta)
http://www.investmenthouse.com/ci/dri.html
Play Date: 06/10/2009
DRIV (Digital River--$38.27; -0.99; optionable): Internet software/services
http://biz.yahoo.com/p/d/driv.html
After Hours: $38.27
EARNINGS: 04/29/2009
STATUS: Double top. DRIV made us great money on its March to May run. That tapped it out, however, as it faded to test the 50 day EMA (now at 35.74). Rebounded nicely and made a new high on the run during the first week of May but there was no volume; all below average trade. It turned over and started to sell Wednesday, volume rising to average as DRIV fell harder. There is some support at 37.65ish, but willing to move in as DRIV continues lower and falls back toward support at 35ish. That is our initial target, and a move to that level lands a 55%ish gain.
Volume: 609.647K Avg Volume: 608.643K
BUY POINT: $37.97 Volume=800K Target=$35.08 Stop=$39.77
POSITION: DQI SH - July $40p (-61 delta)
http://www.investmenthouse.com/ci/driv.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.
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stock share
stock recommendation
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