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us stock market, stock split
Begin Part 2 of 3
THE PLAYS
We are keeping the plays to the best of the best and have all plays listed in the summary table to make it easy to follow the action for each session as well as our comments on the action. Our goal is get you onto the best plays and to have a report that is very functional for you to use.
BONUS PLAYS:
Downside:
JCI (Johnson Controls--$78.41; -3.17; optionable): Auto parts
http://biz.yahoo.com/p/j/jci.html
STATUS: Put. Tanked below the 200 day MVA (81.50) on strong volume, completing something of a head and shoulders pattern. After hours Delphi upped its guidance so these stocks saw a pop higher. We anticipate that JCI will try to rally toward the 200 day but fail at that point or at 80. When it rolls over we will look at taking positions or further down when it is back below Tuesday close.
Volume: 913.5K Avg Volume: 434.318K
BUY POINT: After a test of 80, 79.25. Breakdown: $78.30. Volume=600K Target=$75 Stop=$81
POSITION: JCI TQ - Aug. $85 put (-69 delta)
http://www.investmenthouse.com/cs/jci.html
Upside:
ABY (Abitibi-Consolidated--$9.25; +0.16; optionable): Paper and paper products
http://biz.yahoo.com/p/a/aby.html
STATUS: Flat base. ABY is working between 8.50 and 9.50 in a flat base for the past four months. It has shown some very interesting action of late, however. Instead of riding back down to 8.50 this time, it held at the 50 day MVA (8.85) and then jumped up today on a huge volume surge. Accumulation is excellent with accumulation weeks outnumbering distribution weeks. 7 to 2 during this base.
Volume: 606.1K Avg Volume: 236.363K
BUY POINT: $9.55 Volume=325K Target=$11.5 Stop=$8.55
POSITION: ABY JU - Oct. $7.50 call (76 delta) and/or Stock
http://www.investmenthouse.com/cs/aby.html
PRE-ANNOUNCEMENT BEST PLAYS\
EDMC (Education Management--$43.90; +0.96; optionable): Researching a date for this split candidate, but the pattern has formed up well.
http://biz.yahoo.com/p/e/edmc.html
BACKGROUND: Last announced a 2 for 1 split on 12-2-98 in conjunction with a board meeting. The stock price was $47. The company has sufficient shares for a 2 for 1 split.
STATUS: Cup with handle. Continues to surge toward a strong breakout of the cup with handle pattern, giving us a very nice gain on strong volume along the way. A breakout of the 12-month base is at 44.70 on continued strong volume. Like what we are seeing, but it may try to move laterally a bit here before making a stronger move higher. WE can add at that point.
Volume: 806.8K Avg Volume: 240.636K
BUY POINT: $44.70 Volume=334K Target=$53 Stop=$39.50
POSITION: Stock and/or UKN LG - Dec. $35 call (Low OI)
http://www.investmenthouse.com/cs/edmc.html
HUG (Hughes Supply--$41.86; -0.41; optionable): Working on another date for this one.
BACKGROUND: Based upon our research it does not appear that HUG has ever split its stock. The company has sufficient shares for a 2 for 1 split.
http://biz.yahoo.com/p/h/hug.html
STATUS: Cup. Started to move today hitting a high of 43.50 on some strong volume, but then backed off at the close, denying the breakout. It may take another day or two to consolidate and try it again. We will look at that for another buy point. Accumulation weeks lead distribution weeks 4 to 1.
Volume: 254.5K Avg Volume: 168.727K
BUY POINT: $43.09 Volume=250K Target=$52 Stop=$39.50
POSITION: Stock and/or HUG JG - Oct. $35 call (82 delta) or HUG JH - Oct. $30 call (66 delta)
http://www.investmenthouse.com/cs/hug.html
NYT (New York Times--$51; +0.28; optionable): Forecast to announce a split in conjunction with a board meeting or on 7-16-02 before the market opens in conjunction with earnings.
http://biz.yahoo.com/p/n/nyt.html
BACKGROUND: Last announced a 2 for 1 split on 6-17-98 in conjunction with a board meeting. The stock price was $ (jay I do not have a price) The annual shareholder meeting was on 4-16-02 at which time no additional shares were authorized. The company has sufficient shares for a 2 for1 split.
STATUS: After a strong breakout NYT has pulled back to the 10 day MVA (50.75) on declining volume in a very orderly test of the breakout. It showed a doji on that level today, a rising star doji. Looks ready to bounce up to continue the move. We can add to positions here.
Volume: 680.4K Avg Volume: 513.318K
BUY POINT: $51.65 Volume=600K Target=$61 Stop=$47.80
POSITION: NYT JI - Oct. 45 call
http://www.investmenthouse.com/cs/nyt.html
PRE-SPLITS BEST PLAYS: Remember, we try to grab Pre-Splits as they break out of good patterns or as they start a run right before the split. Not looking for home runs, but looking for those $3 to $4 moves running into the split, watching for topping signs and potential resistance. Not huge money, but it can be very steady. We set our initial stops at the 7-8% range below the purchase price (or just below obvious support), and move them up on a move to preserve our profits.
Upside:
ERES (Eresearch Tech--$23.80; +0.69; no options): Splits 3:2 on 7-17
http://biz.yahoo.com/p/e/eres.html
STATUS: Hit the buy point last week and started moving this week on higher volume. Still at a point it can give a decent return, preferably as an add to existing positions.
Volume: 199.8K Avg Volume: 102.818K
BUY POINT: Add to at 23.90 (original $23.06). Volume=150K Target=$26 Stop=$21.20
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cs/eres.html
TRBS (Texas Regional Bancshares--$50.29; +0.12; no options): Splits 3:2 on 7-1-02
http://biz.yahoo.com/p/t/trbs.html
STATUS: Still holding in that short cup with handle base. Monday TRBS showed an above average volume spike, but today's move showed much weaker volume. Still, it is a good pattern and we are still looking for the breakout from this pattern.
Volume: 41.2K Avg Volume: 61.181K
BUY POINT: $51.25 Volume=11K Target=$61.51 Stop=$47.50
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/trbs.html
Downside:
STJ (St. Jude Medical--$75.04; -0.74; optionable):
http://biz.yahoo.com/p/s/stj.html
STATUS: Put. In the process of completing a head and shoulders pattern, STJ broke below the 200 day MVA today (76). We would have preferred stronger volume, but we will look for that to happen on the breakdown.
Volume: 654.9K Avg Volume: 698.909K
BUY POINT: Aggressive: $74.45; Breakdown: 73.95. Volume=750K Target=$70.15 Stop=$76.35
POSITION: STJ TP - Aug. $80 put (-61 delta)
http://www.investmenthouse.com/cs/stj.html
CONTINUING CANDIDATES
PII (Polaris--$67.15; -1.85; optionable):
http://biz.yahoo.com/p/p/pii.html
STATUS: Put. Broke below the 50 day MVA Tuesday on below average volume, looking to undercut some support at the 67 level as it continues the right shoulder of a head and shoulders pattern. Looking for a breakdown here.
Volume: 145.2K Avg Volume: 184K
BUY POINT: $66.15. Volume=185K Target=$62.15 Stop=$70
POSITION: PII TO - Aug. $75 put (-75 delta) PII UN - Sept. $70 put (-53 delta)
http://www.investmenthouse.com/cs/pii.html
WEN (Wendys International--$39.63; -0.17; optionable):
http://biz.yahoo.com/p/w/wen.html
STATUS: Wendy's broke out as well recently and it too has taken the recent selling in stride, pulling back on lower volume as it holds the breakout above the 18 day MVA. This is a very good looking pullback to test the breakout. We are looking for new positions on the move higher.
Volume: 1.228M Avg Volume: 868.636K
BUY POINT: $40.50 (original $40.05). Volume=1.3M Target=$48 Stop=$39
POSITION: WEN LG - Dec. $35 call (78 delta) and/or stock
http://www.investmenthouse.com/cs/wen.html
POST-SPLITS BEST PLAYS:
FNF (Fidelity National Financial--$30.52; -0.15; optionable): Surety & Title Insurance
http://biz.yahoo.com/p/f/fnf.html
STATUS: After a strong breakout last Thursday on very strong volume, FNF has given an orderly pullback on lower and lower volume to test the move. It is still holding the breakout as it shows a doji above the 10 day MVA. It looks ready to go again.
Volume: 496.5K Avg Volume: 541.636K
BUY POINT: New positions over $31.05 Volume=650K Target=$36 Stop=$28.88
POSITION: FNF JE - Oct. $25 call (88 delta) and/or stock
http://www.investmenthouse.com/cs/fnf.html
SRCL (Stericycle--$37.37; -0.12; optionable):
http://biz.yahoo.com/p/s/srcl.html
STATUS: SRCL has continued the pullback to test the screaming breakout, and after a bit of a volatile session Monday on above average volume. Tuesday it tested the 18 day MVA on below average volume and showed a doji. It is holding above the breakout on this test, another good sign. We look for this leader to bounce up from here. A good point for new or additional positions.
Volume: 392.7K Avg Volume: 306.5K
BUY POINT: $38.25 (original $39.25). Volume=450K Target=$45 Stop=$36.55
POSITION: URL KG - Nov. $35 call (71 delta) and/or stock.
http://www.investmenthouse.com/cs/srcl.html
BONUS PLAYS REVISITED
CYMI (Cymer--$33.13; -4.03; optionable):
http://biz.yahoo.com/p/c/cymi.html
STATUS: Put. This one worked so well and is falling so hard we are looking for another downside play. Tuesday it broke below the 200 day MVA (34.50) on very strong volume, completing the head and shoulders pattern. It has plenty of room to fall from here.
Volume: 2.611M Avg Volume: 1.46M
BUY POINT: $32.95 Volume=2M Target=$25.55 Stop=$37
POSITION: CQG TH - Aug. $40 put (-61 delta)
http://www.investmenthouse.com/cs/cymi.html
End Part 2 of 3
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us stock market
stock split
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