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us stock market, trend trading 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: 07/07/2010
LZ (Lubrizol--$82.63; +3.42; optionable): Chemicals
http://biz.yahoo.com/p/l/lz.html
After Hours: $82.52
EARNINGS: 07/29/2010
STATUS: Rolling. Another quality stock that rallied February to April and then started to consolidate, but importantly, did not break down. Instead it formed a familiar trading range with three prior lows May into June. Very nice, methodical trading range, and the past week LZ again made a test of the bottom of the range (now coincident with the 200 day SMA), moved laterally, and then surged higher Wednesday on strong, above average volume. Very solid initial move and looking to step in as LZ continues to the upside.
VIDEO: http://investmenthouse1.com/ihmedia/LZ.wmv
Volume: 1.048M Avg Volume: 837.025K
BUY POINT: $82.88 Volume=1M Target=$95.66 Stop=$77.74
POSITION: LZ 10I80.00 - Sept. $80c (61 delta) &/or Stock
Play Date: 07/07/2010
TJX (TJ Max--$43.51; +1.09; optionable): Discount department stores
http://biz.yahoo.com/p/t/tjx.html
After Hours: $43.69
EARNINGS: 08/17/2010
STATUS: TJX has tested a strong February to April run, bouncing twice off the 50% Fibonacci retracement in May, and now has tested that level again the past week following a solid bounce after that last test of that support level. Worked laterally the past week at that support, and started to bounce Wednesday. If TJX can continue the Wednesday upside break for us we are looking to move in to catch a roll back up in the range that has formed since late April.
VIDEO: http://investmenthouse1.com/ihmedia/TJX.wmv
Volume: 5.257M Avg Volume: 5.807M
BUY POINT: $43.64 Volume=6.8M Target=$49.89 Stop=$41.43
POSITION: TJX 10J40.00 - Oct. $40c (69 delta) &/or Stock
Play Date: 07/07/2010
UA (Under Armour--$34.61; +2.10; optionable): Sports apparel
http://biz.yahoo.com/p/u/ua.html
After Hours: $34.61
EARNINGS: 07/27/2010
STATUS: ABCD upside. Looking to play UA again as it sets up for a new rally. Strong February to May run, a choppy base from late April into early June, a breakout in early June. That breakout took UA to a new rally high but in the market selling the past three weeks UA tested, using the move to consolidate a bit more, stair-stepping down through this past week. That action formed an ABCD pattern, setting up the next upside move. Wednesday UA bounced sharply off support, holding almost all the gain into the close. Nice upside break, and ready to move in as UA continues the upside break.
VIDEO: http://investmenthouse1.com/ihmedia/UA.wmv
Volume: 655.186K Avg Volume: 939.897K
BUY POINT: $34.81 Volume=1M Target=$39.94 Stop=$31.97
POSITION: UA 10J30.00 - Oct. $30c (90 delta) &/or Stock
CONTINUING PLAYS READY TO MOVE:
Play Date: 06/30/2010
INFY (Infosys Technologies--$60.77; +1.35; optionable): Technical software
http://biz.yahoo.com/p/i/infy.html
After Hours: $60.70
EARNINGS: 10/11/2010
STATUS: ABCD. This stock gapped higher Tuesday, forming a doji right under the 50 day EMA. It held a gain when not many could, and then kept tracking higher Wednesday. A little out of reach for the buy at this level, but if it can test towards the 50 day EMA and hold, we can look at entering with the bounce back. To recap: 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: 888.399K Avg Volume: 1.585M
BUY POINT: $59.84 Volume=2M Target=$66.75 Stop=$57.21
POSITION: INFY 10J60.00 - Oct. $60c (54 delta) &/or Stock
Play Date: 06/23/2010
KLIC (Kulicke & Soffa--$7.58; +0.26; optionable): Chip equipment
http://biz.yahoo.com/p/k/klic.html
After Hours: $7.60
EARNINGS: 07/26/2010
STATUS: Double bottom w/handle. After showing a doji under the 50 day EMA Tuesday, KLIC bounced with the rest of the market Wednesday to post a nice gain. This stock is on the right track, and now if it can keep working higher, it will hit our entry point. To recap: KLIC is another chip equipment stock that is setting up nicely for an upside move . . . as long as it can complete this current pattern and show us the goods, i.e. a breakout. Nice rally into April but it peaked and needed a base to rest. It has put in some good work, forming a double bottom at the 200 day SMA and then rallying over the past two weeks on some decent upside volume. The past week a lateral move to form the handle, and though Tuesday was a bit rocky in terms of how much it tested, it is still above the 18 day EMA and the February and March peaks, a logical support area for the handle test. Watching for KLIC to hold this general area and then make an upside break through the buy point that sticks to the close. If it can do that, and it may take another day or two or three, then we are ready to move in with the buy
VIDEO: http://investmenthouse1.com/ihmedia/KLIC.wmv
Volume: 1.504M Avg Volume: 2.283M
BUY POINT: $7.75 Volume=2.5M Target=$9.38 Stop=$7.21
POSITION: KLIC 10J7.50 - Oct. $7.50c (64 delta) &/or Stock
Play Date: 06/30/2010
NDN (99 Cents Only Stores--$15.14; +0.20; optionable): Discount variety stores
http://biz.yahoo.com/p/n/ndn.html
After Hours: $15.14
EARNINGS: 08/06/2010
STATUS: Trend reversal. This one tried to move higher Tuesday with the gap up, but nothing stuck and it rolled back to flat. A little tap at the 50 day EMA Wednesday sent this one nicely higher, and now we get an ideal entry with a little fade that bounces right back up. To recap: 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 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: 809.516K Avg Volume: 684.962K
BUY POINT: $15.02 Volume=850K Target=$17.44 Stop=$14.27
POSITION: NDN 10I15.00 - Sept. $15c (44 delta) &/or Stock
Play Date: 06/15/2010
NETL (Netlogic Microsystems--$29.56; +2.58; optionable):
http://biz.yahoo.com/p/n/netl.html
After Hours: $29.54
EARNINGS: 07/28/2010
STATUS: Reverse head and shoulders. After holding the June lows for support for several sessions, NETL took a strong Wednesday bounce higher. It is not too far from the buy point, so if it continues higher with this solid volume it looks good for our buy. To recap: Worked laterally to finish up last week, and then tried to bounce Monday. Did not stick the move, but still in good shape at this level. If the stock can get a little fade and hold, we can look to buy it as it sticks a bounce higher. To recap: As with many stocks, a bit of side-step Thursday as NETL pauses after some solid upside that moved it past the early June peak. If it catches fire upside we can start some more positions. To recap: Looking at adding some positions on our current play as NETL has morphed its pattern into a bit of a reverse head and shoulders, forming the right shoulder the past two weeks. Tuesday NETL broke through the neckline resistance on the best volume in over a week, clearing the 50 day EMA on the way and holding just about all of the gain on the session. Solid upside break and ready to move into more positions as NETL continues this new move.
VIDEO: http://investmenthouse1.com/ihmedia/NETL.wmv
Volume: 2.428M Avg Volume: 1.422M
BUY POINT: $29.88 Volume=2M Target=$34.89 Stop=$27.79
POSITION: NETL 10J27.50 - Oct. $27.55c (67 delta) &/or Stock
Play Date: 07/03/2010
TEN (Tenneco Automotive--$20.95; +1.28; optionable): Auto parts
http://biz.yahoo.com/p/t/ten.html
After Hours: $20.95
EARNINGS: 07/29/2010
STATUS: Rolling. TEN tested back the past couple of weeks, finally holding up Tuesday at the 200 day SMA and the June low. Pretty solid support, and a great place to spring up from. It did just that Wednesday, and now just another small move higher will hit the buy point so this is one that is worth watching closely. To recap: TEN is testing the 200 day SMA at the bottom of its 2 month trading range where it has traded roughly between 20 and 27. It has sold with the market the past two weeks, gapping below the 50 day EMA Tuesday and then tapping at the 200 day SMA on the Thursday low before rebounding to close flat on the session. Friday it was down but still held above the 200 day and those May and June lows. Nice sharp rebound off the support at the bottom of the range with volume rising nicely above average on the recovery. Oversold as is the market, and looking to play TEN to the upside in its range as the overall market makes a comeback off this recent sharp selloff.
VIDEO: http://investmenthouse1.com/ihmedia/TEN.wmv
Volume: 1.427M Avg Volume: 1.453M
BUY POINT: $21.11 Volume=2M Target=$25.91 Stop=$19.63
POSITION: TEN 10J20.00 - Oct. $20c (58 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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us stock market
trend trading stock
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