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: 06/30/2010
CSX (CSX Corp.--$49.63; -0.32; optionable): Railroads
http://biz.yahoo.com/p/c/csx.html
After Hours: $49.63
EARNINGS: 07/12/2010
STATUS: Rolling. CSX is a railroad so it is only appropriate that it is in a rolling pattern, using the 200 day SMA as support for the past two months. Indeed, it has already bounced three times off that level and now it finds itself there again, showing a doji Wednesday after flopping to that level in the Tuesday selling. Good risk/reward position with the 200 day SMA as support close at hand. Looking for CSX to bounce, and if it can hold it into the close we are looking at some positions.
VIDEO: http://investmenthouse1.com/ihmedia/CSX.wmv
Volume: 4.659M Avg Volume: 4.152M
BUY POINT: $50.46 Volume=5.8M Target=$56.94 Stop=$48.89
POSITION: CSX 10K50.00 - Nov. $50c (55 delta) &/or Stock
Play Date: 06/30/2010
INFY (Infosys Technologies--$59.91; 0.00; optionable): Technical software
http://biz.yahoo.com/p/i/infy.html
After Hours: $59.91
EARNINGS: 10/11/2010
STATUS: ABCD. Setting up nicely, using the market selling to set up for a new run higher. Something of a reverse head and shoulders from May into early June after selling back from the early April peak. INFY even tapped the 200 day SMA on the late May low on the inverted 'head.' Broke out mid-June with a gap and rallied to a new rally high. In the selling it is testing back, stepping back to the 50 day EMA Tuesday and Wednesday, holding spot on that level. If it holds that point and bounces it will have set the D point in the pattern. If it can hold the move through the buy point in toward the close that is our entry.
VIDEO: http://investmenthouse1.com/ihmedia/INFY.wmv
Volume: 1.37M Avg Volume: 1.602M
BUY POINT: $60.84 Volume=2M Target=$66.75 Stop=$59.31
POSITION: INFY 10J60.00 - Oct. $60c (54 delta) &/or Stock
Play Date: 06/30/2010
NDN (99 Cents Only Stores--$14.80; -0.03; optionable): Discount variety stores
http://biz.yahoo.com/p/n/ndn.html
After Hours: $14.80
EARNINGS: 08/06/2010
STATUS: Trend reversal. NDN peaked its last run in early April after rounding off the move starting in February. It has slid lower into early June, rebounding to the 200 day SMA last week, then bursting through on a strong shot of volume. Monday it moved through the 50 day EMA, then Tuesday and Wednesday it tested, holding right on top of that level once more. Nice break above the near term downtrend and looking for NDN to continue up from this modest test. The economy is viewed to be in jeopardy, and these kind of deep discount stores work well in a weaker economy. On a renewed break to the upside we are looking to pick up some NDN.
VIDEO: http://investmenthouse1.com/ihmedia/NDN.wmv
Volume: 708.124K Avg Volume: 672.786K
BUY POINT: $15.02 Volume=850K Target=$17.44 Stop=$14.27
POSITION: NDN 10I15.00 - Sept. $15c (44 delta) &/or Stock
New Buy Point on a Current Position:
Play Date: 06/30/2010
NFLX (Netflix--$108.65; -3.93; optionable): Mail order DVD's, games
http://biz.yahoo.com/p/n/nflx.html
After Hours: $108.41
EARNINGS: 07/19/2010
STATUS: ABCD. NFLX is one of the leaders I have talked about, one we are watching during the selling to see if it sets back up and gives us a new buy point. After a good rally off the 50 day EMA starting in mid-May it peaked in mid-June and started the current test. It is stair-stepping back, coming again to the 50 day EMA to test the move. In so doing it has formed the familiar ABCD pattern. We like how volume rose as it fell to this key level, indicating that buyers were stepping up to support it. If NFLX can put in the bottom here and bounce it will have formed the D point and I am looking for a move up to the prior high as the initial target. Now we see if this leader can make that move for us.
VIDEO: http://investmenthouse1.com/ihmedia/NFLX.wmv
Volume: 3.728M Avg Volume: 3.337M
BUY POINT: $110.22 Volume=4.4M Target=$126.55 Stop=$106.46
POSITION: NFLX 10I110.00 - Sept. $110c (54 delta) &/or Stock
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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