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yahoo stock, trade stock
Begin Part 2 of 2
THE PLAYS:
Reading the Plays: Please note that when we reference the 10, 18, and 50 day moving averages (MVA), those are exponential moving averages (EMA). The 200 day moving average is always simple (SMA). We will note when we reference a particular MVA differently, e.g., a simple 50 day MVA. Please click on the Yahoo and chart links for company and charting information.
SUBSCRIBER'S CHOICE:
DIGL (Digital Lightwave--$39.38; +4.45; optionable (DGW): Telecom
http://biz.yahoo.com/p/d/digl.html
STATUS: The stock is trading below the 200 day MVA (53.64) and in a cup with handle pattern. After pulling back for 2 days from the April high of 40.24 (handle high), the stock moved up Wednesday, but on lower volume (2.2 million; avg. 1.5 million). That doesn't mean volume was weak (still well above average), but we'd like to see volume rise again to continue this move up for a breakout. The pattern is at the current bottom of a 10-month base, so it still has substantial overhead supply to handle. Shows strong money flow and decent buying. Target: 200 day MVA at 53-54.
BUY POINT: 40.37, on volume of 2.3 million or better. Stop loss: 39.87-40.12.
POSITION: Stock and/or July $35 calls to buy (DGW GG).
http://www.investmenthouse.com/cd/digl.html
Best Plays: SEBL is ready to move, some stocks we haven't visited in a while look better (TQNT, EMLX)
Best Plays:
1) AMAT: Ready to rumble in a rally.
2) RDN: Looking for an earnings play.
3) SGR: Launching.
4) VRSN: Earnings are out after the bell.
5) EXTR: Began a move up today.
6) HI: Hit a new closing high.
New:
BSML (Britesmile--$7.50; +0.49; no options): Health services
http://biz.yahoo.com/p/b/bsml.html
STATUS: Making a breakout move from a cup with handle (6-month base) that is part of a larger base. Buy point is just above the handle high of 7.50, where the stock closed. Volume was stronger on the move up from support (tested on the low at 7), coming in at 171,000 (avg. 96,000). The stock shows huge money flow and good buying. Target: $9.
BUY POINT: 7.63, on continued strong volume (min. breakout volume 144,000). Stop loss: 7.13-7.38.
POSITION: Stock.
http://www.investmenthouse.com/cd/bsml.html
Updates:
AMAT (Applied Materials--$53.18; +1.48; optionable (ANQ): Semiconductor
http://biz.yahoo.com/p/a/amat.html
STATUS: After breaking out to an April high of 59.05, the stock pulled back below the 200 day MVA (55.35) but found support at the 10 day MVA, where it opened Wednesday (51.85). Volume was stronger (33.6 million; avg. 24.5 million) as the stock moved up from there, but backing down from a high of 54.32. On a break over the 200 day MVA resistance, we will look at a target in the 65 range.
BUY POINT: Aggressive: Over the 200 day MVA (55.35 range) on continued rising volume. Stop 54.85-55.10.
POSITION: Aggressive: Stock and/or August $47.50 or $50 calls to buy (ANQ GW or GJ).
http://www.investmenthouse.com/cd/amat.html
RDN (Radian--$69.07; +1.53; optionable (RDN): Insurance
http://biz.yahoo.com/p/r/rdn.html
STATUS: The stock made a move out of the handle of its 8-week cup base, but still needs to meet the buy poing of 69.11. Volume was lower on the move up, coming in at 412,100 (avg. 418,000). The move was in anticipation of its earnings which came out after the bell. We are looking for stronger volume to commence the breakout from here.
Target after a breakout: $76-79.
BUY POINT: 69.11, on volume of 627,000 or better. Stop loss: 68.61-68.86.
POSITION: Stock and/or August $60 calls to buy (RDN HL).
http://www.investmenthouse.com/cd/rdn.html
THE PORTFOLIOS: Each report, we look at these to see which is in a buy position. We don't cover them all each time, just the ones that are looking as if they are ready to pick up a few shares.
THE LEADERS: Some of the new leaders have fallen under the pressure of the bear market and can no longer be considered top picks for such investments (ACS, LLL, NATI, ESRX). We continue to look to stocks like CPN and SGR (and are adding NVDA) as the new leaders, as they are holding up well. With this in mind, we must reiterate that while we are looking for any of these stocks to once again yield long-term investments when the markets turns, for now the plays for moves up in such stocks should be considered largely short-term. We must focus on the stocks that are performing best in a down market as they tend to help lead when the market turns back up.
New Leaders: CPN, SGR, ESRX, NATI, LLL, ACS, NVDA, BRKS
Previous Leaders: ADBE, AMCC, ARBA, BEAS, BRCD, CIEN, EMC, EXTR, GLW, JNPR, NEWP, NTAP, PMCS, SCMR, SEBL, VRSN, VRTS
SGR (Shaw Grp--$62.37; +2.38; optionable (SGR): Manufacturing
http://biz.yahoo.com/p/s/sgr.html
STATUS: Broke from the recent pullback action, up from a Tuesday doji at support (at the 60 level) on stronger, above average volume (739,400; avg. 531,090), a solid move. The stock still needs to clear the intraday high of 63.17, which is just above last week's intraday high of 63, so that can pose resistance. A continued strong move can take that out, however. Target over the high: $69-73. 10 day MVA is at 58.70.
BUY POINT: Aggressive: On further upward movement on continued rising volume. Stop loss: 61.87-62.12.
POSITION: Aggressive: Stock and/or July $55 calls to buy (SGR GK).
http://www.investmenthouse.com/cd/sgr.html
Previous Leaders:
SEBL (Siebel--$42.93; +2.78; optionable (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: Moving up from the 50 day MVA (40.14) after catching support on the low of 39.18, at the 10 day MVA) but volume was lower at 15 million (avg. 18 million). We were looking for a bounce back from the support, but we want to see stronger volume to solidify the move. Looking for the move over the previous high at 47.80; target on that move: $53-55.
BUY POINT: Aggressive: Up from here on volume of 20 million or better. Stop loss: 42.43-42.68.
POSITION: Aggressive: Stock and/or August $35 calls to buy (SGW HG). Better delta than August $40 options.
http://www.investmenthouse.com/cd/sebl.html
VRSN (Verisign Inc--$46.60; +4.67; optionable (VUQ)): Internet Software & Services
http://biz.yahoo.com/p/v/vrsn.html
STATUS: Moved up from support of the 18 day MVA (42.80), where the stock closed Tuesday, gaining a few solid points on good volume (9.6 million; avg. 8.3 million). The stock closed just under resistance of the 50 day MVA (47.25), so we will look for a break of that level for looking at positions. Earnings are out tomorrow after the bell, which can certainly influence the move tomorrow. The stock is off the April high of 53.99, but looks good on this move. Target: April high at the 54 level.
BUY POINT: Over 47.25 on continued rising volume. Stop loss: 46.75-47.00.
POSITION: Stock and/or June $40 calls to buy (QVR FH). Next month out for options is September.
http://www.investmenthouse.com/cd/vrsn.html
EXTR (Extreme Netwks--$29.01; +4.20; optionable (EUT): Internet Software
http://biz.yahoo.com/p/e/extr.html
STATUS:
Made the move we wanted, up from Tuesday's doji at the 50 day MVA (24.48) on stronger volume, just below average at 5.47 million (avg. 5.6 million). The stock closed just under the recent high at 29.94, but on the stronger volume we will look for a break of the resistance. Target over 30: $33-35.
BUY POINT: Over 30 on above average volume. Stop loss: 29.57-29.82.
POSITION: Stock and/or June $25 calls to buy (EUT FE). Next month out on options is September.
http://www.investmenthouse.com/cd/extr.html
UP & COMERS PORTFOLIOS: We have added some new stocks to this portfolio: LNCR, BJ, ANF, LOW, HI and THQI. We like the patterns and their earnings numbers, and they are holding up in this market. The currently existing members (EXDS, TQNT, BVSN, SANM, PKI and GMST) are on a watchlist we will continue to monitor for recovery when the market finally emerges from the bear market.
LNCR (Lincare Holdings Inc--$56.70; +1.96; optionable (LQN): Specialized Health Services
http://biz.yahoo.com/p/l/lncr.html
STATUS: Making a move up on stronger volume (524,400; avg. 606,000) in the extended flat base/pennant pattern. We've been teased by these kinds of move in this pattern before, but that doesn't mean we'll ignore it. Deeper in the bear market we have seen such patterns fail, but recently more and more have been breaking out. We will watch for the same here. Pattern high is 61.06 (upper resistance). Target on a breakout: $67-70.
BUY POINT: Aggressive: Up from here on continued strong volume. Stop loss: 56.20-56.45. Breakout: 61.19, on volume of 818,000 or better. Stop loss: 60.69-60.94.
POSITION: Aggressive: Stock and/or August $50 calls to buy (LQN HJ; low open interests). Breakout: Stock and/or August $60 calls to buy (LQN HL).
http://www.investmenthouse.com/cd/lncr.html
HI (Household Intl--$64.75; +1.65; optionable (HI): Credit Services
http://biz.yahoo.com/p/h/hi.html
STATUS: Broke to a new all-time closing high on stronger volume (1.9 million; avg. 2 million), taking out resistance at 64. Volume remains just under average, so we want to see that improve to keep the stock moving. Trailing stops and stop losses can help preserve gains. Target: $71-74.
BUY POINT: Aggressive: Up from here on above average volume (2.5 million or better). Stop loss: 64.25-64.50.
POSITION: Aggressive: Stock and/or August $60 calls to buy (HI GL).
http://www.investmenthouse.com/cd/hi.html
TQNT (Triquint--$25.80; +2.55; optionable (TQN): Semiconductor
http://biz.yahoo.com/p/t/tqnt.html
STATUS: Moved up from support (above the 50 day MVA, 21.32) on stronger volume of 3.8 million (avg. 4 million). The stock pulled back from the recent high at 29.83, and came up today from Tuesday's doji. Looking for a move up to 30 for an initial target; over that, the 200 day MVA at the 35 level. TQNT has run up from the April low of 10.25, and is showing some good buying volume on the way up. Money flow and buying looking very good.
BUY POINT: Aggressive: Up from here on continued rising, above average volume. Stop loss: 25.30-25.55.
POSITION: Aggressive: Stock and/or August $20 calls to buy (TQN HD).
http://www.investmenthouse.com/cd/tqnt.html
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
EMLX (Emulex--$34.20; +4.00; optionable (UMQ): Computer Hardware
http://biz.yahoo.com/p/e/emlx.html
STATUS: Broke resistance (50 day MVA, 32.55) on stronger volume (9.5 million; avg. 6.8 million), the stock coming off support of the 10 day MVA where it held for 2 days prior to this move. This is the EMLX's first move over this strong resistance since early February, and we are looking for a trade up to the 40 level. The April high is 36.50, so watch that level for resistance. The 200 day MVA is at 53.62.
BUY POINT: Aggressive: Up from here on continued rising volume. Stop loss: 33.70-33.95, or the 50 day MVA (32-33 range).
POSITION: Aggressive: Stock and/or August $30 calls to buy (UMQ GF).
http://www.investmenthouse.com/cd/lncr.html
Put:
DJX (1/100 Dj Indu--$106.25; +1.71; optionable (DJV):
STATUS: Moved back up from support near the opening price of 104.53 and crossed over the 200 day MVA (106.16). Volume was lower at 1.17 million (avg. 1.2 million). If the index cannot hold at this support, or turns back down from resistance at the 107 level, we will look for a move back down for downside play in market selling.
BUY POINT: On a move back down below 106 on strong selling volume.
POSITION: June $112 puts to buy (DJV RH).
Good Investing!
Jon 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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yahoo stock
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