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: 06/14/2010
DLM (Del Monte Foods--$15.24; -0.04; optionable): Processed and packaged foods
http://biz.yahoo.com/p/d/dlm.html
After Hours: $15.40
EARNINGS: 08/30/2010
STATUS: Flag. You have to eat no matter what the economic conditions. After a solid March through late April surge that tested toward a 10 year high, DLM tested back through early last week, bracketing the 50 day EMA as it tested. Surged higher starting Tuesday, picking up some big volume Thursday as it gapped to the April peak. Testing back Friday and Monday, holding over the 10 day EMA as it does. Might take another day or two to test, but a very nice setup to make the next break higher. Want to see a move through the buy point on more solid trade.
VIDEO: http://investmenthouse1.com/ihmedia/DLM.wmv
Volume: 2.943M Avg Volume: 1.865M
BUY POINT: $15.44 Volume=2.2M Target=$18.55 Stop=$14.39
POSITION: DLM 10I15.00 - Sept. $15c (59 delta) &/or Stock
Play Date: 06/14/2010
EMS (Emergency Medical Services--$55.61; +0.84; optionable): Emergency medical services
http://biz.yahoo.com/p/e/ems.html
After Hours: $54.87
EARNINGS: 07/30/2010
STATUS: Triangle. A weekly chart shows a very impressive move from mid-2009 March 2010. Big move, needs a rest. It is taking it with the current 9 week base though quite volatile. It is using the 200 day SMA as support, falling to that level and holding on the twin May lows. This past week EMS put in a higher low above that support, and on Monday rallied sharply on rising volume, but unlike most stocks EMS didn't give any back. If it continues from here we can pick up some positions.
VIDEO: http://investmenthouse1.com/ihmedia/EMS.wmv
Volume: 213.43K Avg Volume: 259.774K
BUY POINT: $55.72 Volume=388K Target=$61.78 Stop=$52.44
POSITION: EMS 10I55.00 - Sept. $55c (52 delta) &/or Stock
Play Date: 06/14/2010
JMBA (Jamba, Inc.--$2.57; +0.06; optionable): Processed beverages
http://biz.yahoo.com/p/j/jmba.html
After Hours: $2.53
EARNINGS: 08/16/2010
STATUS: ABCD up. Great surge March to late April; what is new, right? Then the test. A stair step back making a lower high and last week a lower low just over the 200 day SMA. That is the pattern that shakes out many owners but the strong initial move still shows the upside momentum. Started to bounce Thursday and Friday, tried to extend Monday, but after moving the 50 day EMA JMBA closed right at the B point from early May. May test a bit here, but if JMBA can continue higher we are not adverse to starting some positions as it continues higher.
VIDEO: http://investmenthouse1.com/ihmedia/JMBA.wmv
Volume: 1.125M Avg Volume: 1.273M
BUY POINT: $2.63 Volume=1.4M Target=$3.78 Stop=$2.32
POSITION: JMBA10J2.50 - Oct. $2.50c (83 delta) &/or Stock
Downside:
Play Date: 06/14/2010
CVS (CVS Corp.--$31.87; -0.21; optionable): Drug stores
http://biz.yahoo.com/p/c/cvs.html
After Hours: $32.10
EARNINGS: 08/04/2010
STATUS: Bear flag. Looking at some more positions on CVS as it tests the gap down over a week back that made us a lot of money. It has rallied back to fill some of the gap, but on Monday it hit the 10 day EMA (32.48), actually moving through it, but then rolled over for a loss. Even as it moved higher MACD moved lower. Still weak. Looking for CVS to sell from here and as it does we are ready to enter and make a new play to the downside. Looking for a bigger score on this one so we will see. Good risk/reward. A move to the target lands a 100%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/CVS.wmv
Volume: 15.508M Avg Volume: 12.155M
BUY POINT: $31.73 Volume=12M Target=$27.71 Stop=$33.12
POSITION: CVS 10T32.00 - Aug. $32p (-52 delta)
Play Date: 06/14/2010
DIA (Diamonds Trust (DJ30 EFT)--$102.14; -0.17; optionable)
After Hours: $102.15
STATUS: Bouncing up and down from the February lows to the 200 day SMA (103.21). As with SP500, this is its third test of that resistance in two weeks, hitting it and moving through it Monday but then reversing to close with a loss. If the market starts to sell again DIA is in a great risk/reward position for a trade to the bottom of the range. A move to the February lows lands a 39%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/DIA.wmv
Volume: 8.996M Avg Volume: 13.701M
BUY POINT: $101.96 Volume=17M Target=$98.11 Stop=$103.71
POSITION: DIA 10T103.00 - Aug. $103p (-49 delta)
Play Date: 06/14/2010
HAL (Halliburton--$24.02; -0.37; optionable): Oil and gas service company
http://biz.yahoo.com/p/h/hal.html
After Hours: $24.14
EARNINGS: 07/19/2010
STATUS: Bear flag. One of the companies involved in the BP blowout disaster. HAL has already sold off since late April, but it can still provide some downside if the market cannot continue higher and push through the 200 day SMA (meaning SP500). HAL gapped lower two weeks back and has scratched its way back up since, managing to fill the gap on the Friday high and again on the Monday high, fading Monday though volume was low. Filled the gap, BP meeting with the President Tuesday. If HAL rolls back over we are ready to move in. A move to the target lands a 52%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/HAL.wmv
Volume: 14.359M Avg Volume: 21.814M
BUY POINT: $23.87 Volume=24M Target=$20.82 Stop=$24.98
POSITION: HAL 10V25.00 - Oct. $25p (-55 delta)
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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