stock split, stock recommendation

Support and Resistance

Nasdaq: Closed at 1530.69
Resistance: 1550 is some resistance, then 1560 is the May low (October low is there as well). May down trendline at 1558. 1600 is some resistance, and the 10 day MVA (1583.51) is right there. The 18 day MVA after that is (1612.83). Then the second March down trendline at 1620. The next March to April trendline now at 1657 and the February low at 1700.
Support: 1500. 1460 is some support. After that is the September low at 1387.06.

S&P 500: Closed at 1030.74
Resistance: The first March down trendline at 1033. Then 1050 is some resistance along with the 10 day MVA (1047.26). 1060 offers minor resistance after that from previous prices. The second March/April down trendline at 1061 along with the 18 day MVA at 1058.76. Then the February lows at 1074.
Support: There is some support at the bottom channel of the first March downtrend at 1010. The possible support at 1000. The September low is 944.75.

Dow: Closed at 9645.40
Resistance: 9750 represents potential resistance. The 10 day MVA (9774.34). Then the April and May lows at 9800 to 9811. That is followed by the 18 day MVA (9774.34) and the 200 day MVA (9867.54). The September 2000/February 2001 down trendline is at roughly 9960. Then 10,100, followed by 10,250 to 10,300.
Support: 9500 to 9600 in the shelf of support from 9500 to 10,100. Then 9000 to 9100. There is a rest top at 8500. The September low is 8062.

Economic Calendar

6-12-02
Export Prices ex-ag., May (8:30): NA vs. 0.3% prior.
Import Prices ex-oil, May (8:30): NA vs. 0.4% prior.
Fed's Beige Book (2:00)

6-13-02
Initial claims, 06/08 (8:30): NA vs. 383K prior.
PPI, May (8:30): 0.1% versus -0.2% prior.
Core PPI, May (8:30): 0.1% versus 0.1% prior.
Retail Sales, May (8:30): 0.0% versus 1.2% priorl
Retail Sales ex-auto, May (8:30): 0.3% versus 1.0% prior.

6-14-02
Business Inventories, April (8:30): -0.2% versus -0.3% prior.
Industrial Production, May (9:15): 0.4% versus 0.4% prior.
Capacity Utilization, May (9:15): 75.7% versus 75.5% prior.
Mich. Sentiment-Prel., June (9:45): 97.0 versus 96.9 prior.

THE PLAYS:

BONUS PLAYS: WHI blasted up!

HCA (Hca Inc--$49.30; +0.95; optionable): Hospitals
http://biz.yahoo.com/p/h/hca.html
STATUS: Test of breakout. HCS made a fine move in April, recovering from deep in the handle of a 9-month cup and breaking out. It hit 50.19 before pulling back on the test, holding the 18 day MVA (with prior handle highs at 48). Today HCA bounced up, moving on above average volume. Relative strength has broken out, and we are looking for more from this move. Target: 59
BUY POINT: From here: Over 49.60 on increased volume (2.35m today; avg. 2.07m). Stop: 46.50. Over high: 50.29 on increased volume. Stop: 47.50
POSITION: Stock and/or November $47.50p to buy (HCA KW).

PEGA (Pegasystems--$11.27; +0.74; optionable): Business software
http://biz.yahoo.com/p/p/pega.html
STATUS: Making its way back up in the right side of a long, deep base. It has trended up nicely, and made a solid move up in May after visiting the 50 day MVA (then 7.80, now 9.19). It hit 11.95 before pulling back to the support of the 18 day MVA (10.38), making a bit of a bounce from there last week and then making a strong move up today. We look for strong trending stocks to make three to four solid bounces from the 18 day MVA before needing to rest and revisit the 50 day. Looking for PEGA to continue this move and give us some more. Showing excellent money flow, buying and good relative strength. Target: 15
BUY POINT: Over 11.55 on volume of at least 180k (292k today; avg. 120k). Stop: 10.70 (7%)
POSITION: Stock only (no option chain)

PRE-ANNOUNCEMENTS: PDCO made another solid move! SLM still showing a possible put, and ABC hit the buy point, breaking out with a strong move! ABC is aggressive from here after having made a strong move up from its 50 day MVA; we could see a test of prior highs that will be a more favorable buy point.

PRE-SPLITS: PNRA could be in for a bit of a pullback off of today's doji. YUM could still be thinking about an upside move.

THC ($76.09; +1.27): Splits 3:2 effective 7-1-02. Made the move through the buy point today, continuing the strong move started Friday. After hours THC announced that it sees future numbers exceeding estimates, that should only bolster the strength. A buy up to 78 on volume of 2m, with stock and/or August $70c to buy (THC HN). Moving target out to 90.

ATK ($103.95; +0.69): Splits 3:2 on or about June 11. Still looking for the drop back, and post-split it will be through 67.33 on average or better volume. For positions consult your broker - we are currently looking at August $110p to buy (ATK TB - 23 OI), which will change to August $73.3p. Stop: 71

CONTINUING CANDIDATES: DHR made the drop below recent lows.

CYN ($52.69; +0.81): The drop is getting steeper for CYN. It gave up the 50 day MVA (53.50), testing back up twice, the second fall being very severe. CYN is again making a bounce, but after Friday's gap down and unconvincing reversal, today the stock made another move up, with volume very low at 79,100 (avg. 195k). Looking for the drop back now. On a move below 52 on average or better volume, August $55p to buy (CYN TK - 10 OI, delta currently -.56). Targeting 48.50 (200 day at 48.17). Stop: 54.25

WEN ($38.90; +0.96): Solid move today! WEN started strong and then picked up steam with some good sales numbers. This, on top of the acquisition of Baja Fresh, have produced a solid rebound over the recent (and all-time) high of 38.50. Still a buy up to 40 with continued strong volume (up to 1.09m today; avg. 813k), with stock and/or September $35c to buy (WEN IG).

TGH ($106.15; +0.55): Being acquired by ATH and moving in sync with that stock, and looking good. It showed a doji today as it consolidates a bit just after trying to break from an ascending wedge. Healthcare is strong as investors continue to be defensive, and we will look for more upside here. 107.36 on volume of 600k, with stock and/or October $100c to buy (TGH JT - 21 OI).

POST SPLITS: Good business news for WLP as it continues to show strength. CPS made a strong move, and PRV also moved over recent highs! PFCB could still be showing a put play.

LLL ($59.74; +1.19): Split 2:1 effective 5-21-02. Still looking poised for the drop. LLL tanked through the 50 day (60.76) last week, and we have been looking for a put play since it has made a relief bounce. Today LLL tested the 50 day at its high, but pulled back to close, moving up on reduced volume of 1.36m (avg. 931k), much lower than the recent selling volume. Still looking for strong selling and a put play down to 51. On a drop back through 58 on increased volume, October $65p to buy (LLL SM -20 IO, -.53 delta).

RYL ($51.21; -2.41): Split 2:1 effective 5-31-02. RYL gave up the 50 day MVA (52.20) last week, but managed to rebound back over that level. However, it could not make a meaningful move from there, encountering resistance at the 18 day (53.63), falling off of that level today on increased selling volume (904,500; avg. 686k). The recent low, made just after the split, is 49.54. On a drop through 50, October $57.50p to buy (RYL VT - 109 OI, -.57 delta).

Good Investing!
Jon L. Johnson and the Stock Split Report 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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