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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 10/17/2009
LRCX (Lam Research--$36.46; -0.95; optionable): Chip equipment
http://biz.yahoo.com/p/l/lrcx.html
After Hours: $35.85
EARNINGS: 10/21/2009
STATUS: Flag. LRCX blasted out of a 4 week pennant two weeks back, a pennant that consolidated a 6 week cup breakout. Strong surge and then spent last week testing, coming back to reach toward the prior peaks on the Friday low and then rebounding to hold the 10 day EMA (36.24) on the close. Good little 1-2-3 or flag pattern, and looking for a break higher that can hold the move to enter this play.
Volume: 3.68M Avg Volume: 2.686M
BUY POINT: $36.61 Volume=4M Target=$42.89 Stop=$35.18
POSITION: LMQ AG - Jan. $35c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/lrcx.html
Play Date: 10/17/2009
PAAS (Pan American Silver--$24.02; -0.52; optionable): Silver mining
http://biz.yahoo.com/p/p/paas.html
After Hours: $24.02
EARNINGS: 08/11/2009
STATUS: Breakout test. Silver is enjoying a strong run along with gold. PAAS surged higher two weeks back, clearing a 4 month base, aided by a big gap. Last week all precious metals tested and PAAS came back as well, forming something of a flag patern. It tested the 18 day EMA (23.99) on Thursday and again Friday. Looking to play a bounce off of this test of the May and September peaks, moving in as it holds a gain into the close.
Volume: 2.275M Avg Volume: 1.605M
BUY POINT: $24.51 Volume=2.4M Target=$29.77 Stop=$23.61
POSITION: USP AO - Jan. $24c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/paas.html
Play Date: 10/17/2009
RTEC (Rudolph Technologies--$7.97; -0.02; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/r/rtec.html
After Hours: $7.97
EARNINGS: 11/02/2009
STATUS: Ascending triangle. Nicely formed 10 week pattern, consolidating a nice March to July run. Last week it bumped up against the high in the base and retreated modestly, bouncing off the 18 day EMA on the Friday low (7.73) to hold its move. May test a bit more, but when RTEC starts back up after this test then we move in.
Volume: 112.123K Avg Volume: 105.788K
BUY POINT: $8.21 Volume=150K Target=$9.97 Stop=$7.66
POSITION: UXH BU - Feb. $7.50c (61 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/rtec.html
Play Date: 10/17/2009
SCHN (Schnitzer Steel--$54.00; -2.25; optionable): Steel and iron
http://biz.yahoo.com/p/s/schn.html
After Hours: $55.80
EARNINGS: 10/27/2009
STATUS: Triangle. SCHN is working in a 4 month triangle, coming off the upward sloping trendline last week, bouncing up to the down trendline near 56.60. It faded Friday on low trade; the prior three sessions (the reversal doji and two upside sessions) were on very strong, above average volume. It held at the 50 day EMA on the Friday close and now if SCHN can make the break higher from here on a resumption of that strong volume we can move in. Looking for a hold of the gain into the close to make our buy.
Volume: 446.221K Avg Volume: 551.65K
BUY POINT: $54.62 Volume=800K Target=$62.94 Stop=$50.84
POSITION: SQQ AK - Jan. $55c (48 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/schn.html
Play Date: 10/17/2009
VMC (Vulcan Materials--$52.48; -1.02; optionable): Building materials
http://biz.yahoo.com/p/v/vmc.html
After Hours: $52.47
EARNINGS: 11/02/2009
STATUS: ABCD. VMC surged higher in September, then as quickly fell back through early October. It turned at that point, forming the D point in the pattern. It bounced off that level and then tested last week, holding the 50 day EMA (51.43). Thursday a big move on a surge of volume followed by a modest test Friday that bounced off the intraday low and held the 18 day EMA on the close. Looking for a resumption of the move higher that holds into the close to give us the buy pont.
Volume: 753.665K Avg Volume: 1.269M
BUY POINT: $52.88 Volume=1.6M Target=$60.95 Stop=$50.54
POSITION: VMC AJ - Jan. $50c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/vmc.html
Downside:
Play Date: 10/17/2009
GS (Goldman Sachs--$184.37; -4.26; optionable): Financial services
http://biz.yahoo.com/p/g/gs.html
After Hours: $183.80
EARNINGS: 10/15/2009
STATUS: Rollover. This is a classic pattern for the downside. GS has been very choppy here at a new high, bouncing up and down with gaps all October. Indeed it formed an island reversal last week, gapping higher Wednesday and then lower on Thursday. That is the reversal. Friday GS confirmed it, selling again. We are looking to move in as GS continues to sell. Our initial target is at 175, but if that does not hold we anticipate a move to 170. The initial target lands at 35%ish gain.
Volume: 12.755M Avg Volume: 9.715M
BUY POINT: $184.08 Volume=15M Target=$175.05 Stop=$188.11
POSITION: GPY MQ - Jan. $185p (-48 delta)
http://www.investmenthouse.com/ci/gs.html
Play Date: 10/17/2009
STLD (Steel Dynamics--$15.39; -0.75; optionable): Steel and iron
http://biz.yahoo.com/p/s/stld.html
After Hours: $15.50
EARNINGS: 10/19/2009
STATUS: ABCD down. Steel has some good movers and some laggards. STLD has turned to a laggard. It broke lower from an uptrend in mid-September, bouncing in early October. That was the A point. STLD bounced, tested, then bounced again last week. It hit the 50 day EMA (16) and other price peaks and valleys; strong reversal off that level Friday on rising trade. Ready to move in as it continues lower. A move to the initial target lands a 52%ish gain.
Volume: 8.525M Avg Volume: 8.225M
BUY POINT: $15.29 Volume=8.5M Target=$13.21 Stop=$16.22
POSITION: RQL MK - Jan. $16p (-53 delta)
http://www.investmenthouse.com/ci/stld.html
Good Investing!
Jon L. Johnson and The Daily Staff
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 of 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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