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stock recommendation, stock option
THE PLAYS:
Upside:
Play Date: 06/22/2009
NFLX (Netflix--$40.55; -1.04; optionable): Mail order DVD's
http://biz.yahoo.com/p/n/nflx.html
After Hours: $40.00
EARNINGS: 04/23/2009
STATUS: Double bottom w/handle. Okay so there are some positive patterns out there. NFLX sold off in early May after its April all-time high. It bounced at the February and March consolidation range, faded into last week, then bounced off that same support again. Rallied through Friday on some solid upside volume, reversed intraday, and continued coming back Monday. Unlike many stocks, however, volume was lower and NFLX bounced up off the 10 and 18 day EMA hit on the low (39.55) to close above the 50 day EMA. After a strong November to April run it needed to base out again, and it has done so. This test is giving us a solid upside opportunity. This is a very solid recession play: people entertain themselves more at home in these tough times. NFLX fills that niche nicely.
Volume: 1.765M Avg Volume: 1.936M
BUY POINT: $41.38 Volume=2.9M Target=$49.95 Stop=$38.48
POSITION: QNQ IH - Sept. $40c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/nflx.html
Play Date: 06/22/2009
VITA (Orthovita--$4.88; -0.14; no options): Medical instruments
http://biz.yahoo.com/p/v/vita.html
After Hours: $4.88
EARNINGS: 05/07/2009
STATUS: Flag. In the right sector for this market. VITA surged to a new 8 year high with a big breakout from late May to just over a week back. That move broke it out from a 5 month base. Great base, super move, and now VITA is testing, coming back toward the 18 day EMA (4.75) and tapping the 38% Fibonacci level as well. May pull back some more to fully test the 18 day, but with it at the 38% Fib level we anticipate a bounce higher from here.
Volume: 472.995K Avg Volume: 613.933K
BUY POINT: $5.12 Volume=950K Target=$6.25 Stop=$4.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/vita.html
Downside:
Play Date: 06/22/2009
PENN (Penn National Gaming--$27.91; -1.19; optionable): Resorts and casinos
http://biz.yahoo.com/p/p/penn.html
After Hours: $27.91
EARNINGS: 04/23/2009
STATUS: Double top. After double topping at the August and September 2008 peaks PENN fell to the top of the April consolidation range at 28ish. A weeklong move above that level and below the 50 day EMA (29.50) is getting heavy on the downside with volume rising Monday as PENN closed at a new low in the lateral range. Could still hold the line, but with that double top, rising downside trade, divergent MACD, it looks ready to really break the double top wide open. A move to our initial target lands a 49%ish gain.
Volume: 757.552K Avg Volume: 987.681K
BUY POINT: $27.68 Volume=1M Target=$24.12 Stop=$29.87
POSITION: UQN TF - Aug. $30p (-56 delta)
http://www.investmenthouse.com/ci/penn.html
Play Date: 06/22/2009
SY (Sybase--$32.09; -0.60; optionable): Computer software
http://biz.yahoo.com/p/s/sy.html
After Hours: $32.09
EARNINGS: 04/22/2009
STATUS: Descending triangle. We have played SY to the upside but with the Monday action we are watching for a break lower. SY gapped higher in late April on earnings then formed the current pattern with those lower peaks over a constant support level at 32. If it breaks lower we are in for a move down to the bottom of the March and April consolidation as our first target. That gives us a 42%ish move, and it could weasily fall on toward 29 to 28 if it makes that level and cannot bounce.
Volume: 984.995K Avg Volume: 1.41M
BUY POINT: $31.97 Volume=1.5M Target=$30.02 Stop=$33.42
POSITION: SY TG - Aug. $35p (-74 delta)
http://www.investmenthouse.com/ci/sy.html
Play Date: 06/22/2009
THOR (Thoratec--$25.25; -0.96; optionable): Medical instruments
http://biz.yahoo.com/p/t/thor.html
After Hours: $25.25
EARNINGS: 05/07/2009
STATUS: Head and shoulders. Not every healthcare stock is moving higher. THOR was a leader off of the low but it capped out in early May and then sold ahead of most stocks. It double bottomed to start June, a small pattern that bounced THOR back up to the 200 day SMA (26.31). Hit that level Friday and showed an evening star doji. Sold off harder Monday. Looking to ride THOR lower from here. A move to our initial target lands a 55%ish gain.
Volume: 702.964K Avg Volume: 782.394K
BUY POINT: $25.09 Volume=1.2M Target=$22.55 Stop=$26.42
POSITION: TQU TE - Aug. $25p (-43 delta)
http://www.investmenthouse.com/ci/thor.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 recommendation
stock option
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