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trading system, stock trading system
Begin part 2 of 3
THE PLAYS
Good movers Wednesday: ALT; NBIX; SSYS; TWTC; UCOMA
Best Plays:
1) LU: Believe it or not.
2) ARTI: Nice breakout test underway.
3) HYSL: Still working on the nice handle.
4) MERQ: Nice handle.
5) NBIX: Making a solid breakout.
6) WCS: Looks ready for more.
NEW PLAYS:
Play Date: 05/14/2003
HTCH (Hutchinson Technology--$27.19; -0.2; optionable): PC data storage devices
http://biz.yahoo.com/p/h/htch.html
STATUS: Ascending Triangle. HTCH is in the last stages of a 5.5 month base, preparing for the breakout. Accumulation is solid at 6 up weeks on rising volume to 4 down weeks on rising volume. This is another triangle that has formed after a cup base, and that action sets a good foundation by shaking out the weak holders. We expected HTCH to test back toward 26 here after rallying to the breakout point through Tuesday on solid volume. One more quick test lower that forms another higher low would set the stage for a breakout.
Volume: 587.193K Avg Volume: 534.909K
BUY POINT: $27.78 Volume=802K Target=$33.35 Stop=$25.84
POSITION: UTQ HE - Aug. $25c (74 delta) &/or Stock
http://www.investmenthouse.com/ct/htch.html
Play Date: 05/14/2003
LU (Lucent Technologies--$2.18; +0.03): Telecom processing equipment
http://biz.yahoo.com/p/l/lu.html
STATUS: Cup w/handle. A blast from the past and a stock that is not exactly one that comes to mind when referring to leaders. Still, we look at what the stock is showing us now and whether it can make us a gain. LU is working on a handle to a 4-month base, showing solid 5 to 1 accumulation (5 up weeks on rising volume to 1 down week on rising volume). After volume surged on the move up to form the right side of the base, LU has now worked laterally in a tight range, holding over the 10 day MVA (2.07) as LU forms the handle its base never had. The solid accumulation is joined by some solid money flow that is moving up as the stock moves laterally. So, despite the connotations associated with the name, e.g., collapse, LU can make us some money here, and that is the name of the game.
Volume: 47.692M Avg Volume: 39.96M
BUY POINT: $2.32 Volume=60M Target=$3 Stop=$2.16
POSITION: - Stock
http://www.investmenthouse.com/ct/lu.html
CONTINUING PLAYS:
Play Date: 04/02/2003
ADBE (Adobe Systems--$36.25; -0.24; optionable): Application software
http://biz.yahoo.com/p/a/adbe.html
STATUS: Testing the 18 day MVA. ADBE broke out of its cup with handle base in March and has been moving up the 18 day MVA (35.75) since. It showed a doji Wednesday on the current test that has occurred over the past two weeks. Stocks tend to use the 18 day MVA as support after breaking out of their bases. Looking for a bounce up from here on strong volume after the nice lower volume consolidation the past two weeks.
Volume: 2.175M Avg Volume: 3.613M
BUY POINT: New: $36.95 (orig. $34.12) Volume=4.8M Target=$41 Stop=$35.42
POSITION: AEQ GF - July $30c (69 delta) &/or Stock
http://www.investmenthouse.com/ct/adbe.html
Play Date: 04/29/2003
ARTI (Artisan Components--$22.85; -0.25; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/arti.html
STATUS: Testing the breakout. ARTI is one of the integrated circuit producers, and they had better charts and are holding up better on the chip downgrades than the other chips. After the strong break higher just over a week back, ARTI is now testing the breakout on much lower volume as it moves back toward the 10 day MVA (21.61). We are looking for ARTI to test 22 back to the 10 day and then rally from there on higher volume. Excellent accumulation and money flow supporting the stock.
Volume: 361.84K Avg Volume: 328K
BUY POINT: $20.35 Volume=350K Target=$24 Stop=$19.88
POSITION: UAR ID - Sept. $20c (55 delta) &/or Stock
http://www.investmenthouse.com/ct/arti.html
Play Date: 03/04/2003
CY (Cypress Semiconductor--$9.8; -0.17; optionable): Semiconductors
http://biz.yahoo.com/p/c/cy.html
STATUS: Testing the breakout. Despite the turmoil in the chip sector, CY has been very orderly the past two sessions as it tests lower after the strong breakout. It looks as if it will test the 18 day MVA (9.55) on lower, below average volume. Huge money flow and accumulation, we are looking for CY to complete the test and then rebound on rising volume.
Volume: 2.384M Avg Volume: 2.134M
BUY POINT: New: $10.35 (orig. $6.70) Volume=2.3M Target=New: $12 (orig. positions: $8.65) Stop=$9.48
POSITION: CY IB - Sept. $10c (60 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/cy.html
Play Date: 05/06/2003
HYSL (Hyperion Solutions--$30.47; -0.18; optionable): Application software
http://biz.yahoo.com/p/h/hysl.html
STATUS: Cup with handle. HYSL is still moving laterally below 31 and above the 10 day MVA (30) as volume remains well below average. This is the handle phase, and athe low volume along with tight trading range is good action. We are being patient and letting HYSL provide a strong breakout from its 3.5 month base showing solid 5 to 3 accumulation and strong money flow that is rising as the price moves laterally.
Volume: 387.523K Avg Volume: 658.681K
BUY POINT: $30.83 Volume=1M Target=$37 Stop=$28.67
POSITION: WQE HF - Aug. $30c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/hysl.html
Play Date: 05/12/2003
MERQ (Mercury Interactive--$36.59; -0.21; optionable): Technical and system software
http://biz.yahoo.com/p/m/merq.html
STATUS: Cup w/handle. After the strong move up Monday, MERQ has tested back Tuesday and Wednesday on lower, below average volume. It is being stingy with its gains, tapping at the 10 day MVA on the low (35.80) and rebounding. Solid 3 to 1 accumulation and solid money flow in the base. Looking for a bounce form here on much stronger volume.
Volume: 2.796M Avg Volume: 4.529M
BUY POINT: $37.68 Volume=6.8M Target=$44.25 Stop=$35.04
POSITION: RQB GG - July $35c (70 delta) or RQB JT - Oct. $27.50c (56 delta) &/or Stock
http://www.investmenthouse.com/ct/merq.html
Play Date: 05/03/2003
NBIX (Neurocrine Biosciences--$49.57; +2.34; optionable): Biotechnology
http://biz.yahoo.com/p/n/nbix.html
STATUS: Cup w/handle. NBIX is making the breakout form its 5-month base as the solid 4 to 2 accumulation and rising money flow are paying off. Volume has jumped the past two sessions, and NBIX is still a buy on this move.
Volume: 608.307K Avg Volume: 370.09K
BUY POINT: New: 49.72 (orig. $48.20) Volume=600K Target=$54.25 Stop=$45.96
POSITION: UOT HI - Aug. $45c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/nbix.html
Play Date: 04/26/2003
REY (Reynolds & Reynolds--$28.62; -0.03; optionable): Business software
http://biz.yahoo.com/p/r/rey.html
STATUS: Testing the breakout. After a strong blast higher in mid-April, REY has moved laterally, using the 18 day MVA (28.22) as support as it makes higher lows below 29. The higher lows and constant top are forming a small triangle, and we are looking for the pressure to build and send it on the next leg higher following its breakout. Money flow remains strong and is still moving up ahead of the stock price as it moves laterally on low, below average volume.
Volume: 188.7K Avg Volume: 239.363K
BUY POINT: $29.06 Volume=391K Target=$34.65 Stop=$27.75
POSITION: REY HE - Aug. $25c (80 delta) &/or Stock
http://www.investmenthouse.com/ct/rey.html
Play Date: 05/10/2003
UIS (Unisys--$10.8; -0.07; optionable): Information technology software
http://biz.yahoo.com/p/u/uis.html
STATUS: Cup w/handle. UIS continues to work on the handle of its current 5-month base, testing the 10 day MVA on the lows (10.70). This base has formed on top of a double bottom formed off the July and October lows. This base on base action works out the final sellers and sets a strong foundation for the next move higher. Accumulation is excellent at 8 to 3 and money flow is moving up ahead of price.
Volume: 1.087M Avg Volume: 1.081M
BUY POINT: $11.05 Volume=1.6M Target=$13.25 Stop=$10.38
POSITION: UIS JB - Oct. $10c (67 delta) &/or Stock
http://www.investmenthouse.com/ct/uis.html
Play Date: 05/12/2003
WCS (Wallace Computer Services--$26.89; +0.11; optionable): Printed forms and labels
http://biz.yahoo.com/p/w/wcs.html
STATUS: Flat base. WCS continues to move through its 3.5 month base that formed on the heels of the strong gap higher that moved WCS out of a 7-month double bottom pattern. The current base shows outstanding accumulation at 6 up weeks on rising volume to 0 down weeks on rising volume. Volume has been swelling the past two weeks as WCS started to move to the top of the base. It is now moving laterally the past two sessions as volume fades to back below average. A nice quiet lateral move here sets up a strong breakout.
Volume: 255.9K Avg Volume: 320.318K
BUY POINT: $26.12 Volume=510K Target=$31.35 Stop=$25.24
POSITION: WCS IE - Sept. $25c (76 delta) &/or Stock
http://www.investmenthouse.com/ct/wcs.html
End part 2 of 3
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trading system
stock trading system
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