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us stock market, trade stock
Begin part 3 of 3
THE PLAYS:
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Each play contains an additional link to a VIDEO that discusses the play in terms of the CHART PATTERN it is currently showing. Patterns, buy points, and targets are discussed along with other points that make the play a good one as well as what areas to watch for. *********** *************
Upside:
Play Date: 06/08/2010
CNC (Centene--$23.03; -0.58; optionable): Health care plans
http://biz.yahoo.com/p/c/cnc.html
After Hours: $23.03
EARNINGS: 07/27/2010
STATUS: Double bottom w/handle. A little bit defensive here. Strong, very strong surge in March as CNC went ballistic. It rallied a bit further into mid-April and then sold off into the May pullback. Tested twice, forming something of a double bottom near the late December 2009 peak. Nice bounce, then a handle formed last week just below the 'hump.' Friday as the market sold off CNC broke out. Monday it sold intraday then rebounded to flat, backsliding a bit more Tuesday to test the 50 day EMA on the low. Great strength and plenty of room upside to make us some good money. If it continues this move higher, that is our trigger to move into positions.
VIDEO: http://investmenthouse1.com/ihmedia/CNC.wmvVolume: 631.933K Avg Volume: 708.733K
BUY POINT: $23.88 Volume=950K Target=$27.94 Stop=$22.41
POSITION: CNC 10I22.50 - Sept. $22.50c (60 delta) &/or Stock
Play Date: 06/08/2010
DECK (Deckers Outdoor--$144.80; +1.80; optionable): Footwear and accessories
http://biz.yahoo.com/p/d/deck.html
After Hours: $140.86
EARNINGS: 07/21/2010
STATUS: DECK is one of the market leaders, and while it has come under pressure as have many retail leader stocks it is still showing momentum that can make us money. Surged to a high in late April with a gap. Filled it and indeed went lower, forming a double bottom pattern to consolidate the prior rally. Great surge two weeks back took DECK back up to that prior April peak. Friday and Monday DECK was pulling back, but on lower volume. Monday DECK hit and held the 10 day EMA on the close, and Tuesday it showed another doji with tail as it reversed nicely off the intraday lows. That has set up the flag off of that last surge from the low. With a stock split coming DECK has the potential for more momentum, and if it can come off of this test of near support with some vigor, it is worth some positions. Very strong upside trade from DECK, showing the buyers are still there.
Volume: 534.805K Avg Volume: 447.245K
BUY POINT: $144.77 Volume=615K Target=$174.93 Stop=$141.21
POSITION: DECK 10I145.00 - Sept. $145c (54 delta) &/or Stock
Play Date: 06/08/2010
HNT (Healthnet--$25.42; +0.22; optionable): Health care plans
http://biz.yahoo.com/p/h/hnt.html
After Hours: $25.33
EARNINGS: 08/04/2010
STATUS: Cup w/handle. Yes another HC stock and while we don't want to overload on any particular sector, these are getting money in a more defensive minded market. We will simply see which one takes off first. HNT is in a three day handle to a 10 week base formed around the 50 day EMA. Very solid volume the past week as HNT rallied up to finish the cup part of the base. Easing back this week on lighter trade, just what you want in the handle shakeout. Now we wait for the test to finish and then have HNT show us a good break higher through the buy point as our entry.
VIDEO: http://investmenthouse1.com/ihmedia/HNT.wmv
Volume: 1.883M Avg Volume: 1.479M
BUY POINT: $25.71 Volume=2.1M Target=$29.75 Stop=$23.91
POSITION: HNT 10J25.00 - Oct. $25c (52 delta) &/or Stock
Play Date: 06/08/2010
LULU (Lululemon Athletica--$39.05; +0.73; optionable): Apparel
http://biz.yahoo.com/p/l/lulu.html
After Hours: $39.05
EARNINGS: 06/10/2010
STATUS: Double bottom. LULU has pulled back farther than we wanted, but it is still in its pattern after reaching down into the March gap point intraday and then rebounding for a gain. Nice reversal, and off of this test and rebound we are looking to move in. To recap: As with most stocks LULU rallied from February to April and then sold in May. The difference is how they sold. Leaders used the selling to form another base to rally from. Laggards broke down and are not in any real patterns. LULU is in the former group of course or else it would not be in this section. Indeed, last week LULU was breaking upside before the Friday selling brought most all stocks back. LULU fell to the 18 day EMA on that selling. This is well above the two lows in May, lows that filled the late March gap higher (earnings). Still feel this test is something of a gift for the buyers. As LULU continues this reversal we are ready to move in.
VIDEO: http://investmenthouse1.com/ihmedia/LULU.wmv
Volume: 1.348M Avg Volume: 1.297M
BUY POINT: $39.93 Volume=1.8M Target=$49.88 Stop=$37.13
POSITION: LULU 10I40.00 - Sept. $40c (55 delta) &/or Stock
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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