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yahoo stock, us stock market
Begin Part 2 of 2
TEAM TRADES
ONIS, a stock on the Daily, had pulled back to the 50 day MVA on pretty low volume (for that stock) Friday and looked ready for a move up. We have seen a lot of stocks in a similar pattern, having broken back over their 50 day MVAs on strong volume, and pulling back since to major support. We were looking for a strong move back up and break over the April high of 40.95.
When the Nasdaq gapped open higher today, ONIS did the same, opening up over 2 points to 34.35. That set off an alert on eSignal just after 8:30. The stock pulled back to test 33.80 and bounced back up on strong volume, and we were tempted to get in at that point, but the early hour made us wait. The stock, of course, immediately ran to a high of 36.17 just after 9:00, but our opportunity came on a pullback to the 5-minute MVA and a test of support at 35.50. The stock headed back up on positive volume, so we entered a bid on the July $25 options. They were trading at 14.50 by 13.50, a $1.00 spread, so we put in a limit order at 14.25 for the fill. ONIS then headed up and we put in a stop loss at 11, and went about other business for a while.
When we looked again at 2:48, just before the close, the stock already had pulled back and bounced back up from the 36.75 range, then taken a deeper dip down to 35.50 but was holding above that level. Showing good volume (4.82 million; the average is 3.6 million and the stock had closed Friday at 3.6 million), the stock is looking good for a continued move up from here.
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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.
Best Plays: WLSN gave us a strong breakout today, and SVRN continues its astounding 2-week breakout run fantastic. Looking at some new, interesting patterns tonight such as QTRN and TTWO, and still like some from the last week and the weekend: BRCD, EXTR, TQNT, ADBE.
Best Plays:
1) QTRN: A double-bottom with handle.
2) RESP: A strong move up.
3) CPN: Trying to high a new high on stronger volume.
4) EXTR: On the move.
New:
QTRN (Quintiles Trans--$20.55; +1.10; optionable (QRT): Diversified Services
http://biz.yahoo.com/p/q/qtrn.html
STATUS: Making a breakout move from a double-bottom with handle pattern; handle high is 20.40, buy point 20.53. Volume was higher (1 million; avg. 1.2 million), so we will want to see much stronger volume for a decent breakout. The February high is 22.88. QTRN formed the pattern just off the bottom of a long base (bottom at 12.38). The stock shows great money flow and buying. Initial target: $23-24.
BUY POINT: Up to 21.56 on volume of 1.8 million or better. Stop loss from here: 19 (10 day MVA is at 19.27).
POSITION: Stock July $17.50 calls to buy (QRT GW).
http://www.investmenthouse.com/cd/qtrn.html
GVA (Granite Construction--$25.68; -0.32; optionable (GVD): Material & Construction
http://biz.yahoo.com/p/g/gva.html
STATUS: Consolidating in a pennant pattern on below average volume (105,400; avg. 113,181), off an April high (pattern high) of 26.55. The stock tested the 10 day MVA on Friday's low of 25.67 and may do the same from here, but we are looking for a move back up if so. The pattern formed as the stock tested its recent breakout off the 10 day MVA. Money flow and buying look very good. Initial target:
BUY POINT: 26.68, on volume of 153,000 or better. Remains a buy on the breakout up to 28.00. Stop loss: 24.68, 18 day MVA.
POSITION: Stock. June $23.38 calls (GVD FX) have very low open interests.
http://www.investmenthouse.com/cd/gva.html
Updates:
RESP (Respironics--$31.74; +1.72; optionable): Health Services
http://biz.yahoo.com/p/r/resp.html
STATUS: Making a strong move off support (10 day MVA at the 30 level) on strong volume (527,300; avg. 184,136). The stock is approaching the April high of 32.11, making up ground after a pullback from that high that resulted in another test of the 50 day MVA (currently at 28.34). Looking for a break of the 32.11 resistance on continued strong volume. Initial target over the December high of 34(which is the start of the stock's current 4-month base): $37-39.
BUY POINT: Aggressive: Up from here on continued strong volume. Stop loss: 29.50 (just under the 18 day MVA).
POSITION: Stock and/or July $30 calls to buy (SBU GF).
http://www.investmenthouse.com/cd/resp.html
TTWO (Take-Two--$13.94; +0.07; optionable (TUO): Technical Software
http://biz.yahoo.com/p/t/ttwo.html
STATUS: In a tight 3-day lateral consolidation (flying plateau) on lower volume after the stock made a strong move off the 50 day MVA (12.67) and the 200 day MVA (tapped on the previous 2 day's lows at 11.95). Volume was actually just over average levels Monday at 730,700 (avg. 630,000), up from that of Friday, so we are looking at a possible test of the 10 day MVA (13.49) if the stock doesn't head up from here. We are looking at potential positions on a move over the March high of 14.63, which would take care of overhead supply up to that point. Initial target: $16.
BUY POINT: Over 14.63 on above average volume of 986,000 or better. Stop loss: 13.61.
POSITION: Stock and/or June $10 or $12.50 calls to buy (TUO FB or FV). Next month out for options is Sept.
http://www.investmenthouse.com/cd/ttwo.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 (LLL, NATI, ESRX). We continue to look to stocks like ACS, CPN, SGR, NVDA and BRKS as the new leaders. 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
CPN (Calpine--$56.99; +1.99; optionable (CPN): Electric Utilities
http://biz.yahoo.com/p/c/cpn.html
STATUS: Began moving out of the small ascending wedge pattern it formed since earlier this month (after hitting a high of 58.04 in March), moving over the pattern's high at 56.75 on stronger, average volume ( 4 million). The stock just beat the pivot, or buy, point of 56.88. Will have to get a strong shot of volume for this to make a real breakout. Target: $63-65.
BUY POINT: Remains a buy on a breakout up to 59-60, if we get volume of 5 million or better. Stop loss: 53 (18 day MVA).
POSITION: Stock and/or July $50 calls to buy (CPN GJ).
http://www.investmenthouse.com/cd/cpn.html
Previous Leaders:
EXTR (Extreme Ntwks--$32.90; +4.30; optionable (EUT): Internet Software
http://biz.yahoo.com/p/e/extr.html
STATUS: We looked at EXTR last Wednesday and after holding steady for 2 days, the stock made the move we wanted as the Nasdaq rallied on strong volume (7.4 million; avg. 5.7 million). The stock consolidated on a pullback to the 50 day MVA (after breaking over that resistance the previous week), then made the stronger move up last week Looking for a continued move up from here. The 10 and 50 day MVAs are at 26.45 and 25.09, respectively). Target: $40.
BUY POINT: Aggressive: Up from here on continued strong volume. Stop loss: 29.50.
POSITION: Stock and/or June $27.50 calls to buy (EUT FR). Next month out: Sept.
http://www.investmenthouse.com/cd/extr.html
ADBE (Adobe--$44.92; -0.70; optionable (AEQ): Application Software
http://biz.yahoo.com/p/a/adbe.html
STATUS: ADBE continues to hold above support (10 day MVA, 43.80) on below average volume that kicked up Monday to 4.67 million (avg. 6.2 million). The stock tested the lower support just as it did Friday, so that looks firm for now. The higher volume is something to keep an eye one, because it indicates some selling, though mild. The high tapped 47.79. We are looking for a move up from here or the 10 day MVA on continued rising volume. Initial target over the April high of 48.80: $54-56.
BUY POINT: On a bounce from the 43.80 range (10 day MVA) on continued rising volume. Stop loss: 40.70.
POSITION: Stock and/or August $35 or $40 calls to buy (AEQ GG or GH).
http://www.investmenthouse.com/cd/adbe.html
BRCD (Brocade--$37.99; +2.37; optionable (UBF): Computer Hardware
http://biz.yahoo.com/p/b/brcd.html
STATUS: Made a move up in the small ascending wedge pattern on a shot of volume (12.9 million; avg. 16 million), crossing back over the 50 day MVA (37.48). The stock came off its high of 40.10, but we like the hold above the 50 day MVA, where we will look for support for a continued move up. Initial target: $50. Money flow has really come on since mid-month, and buying looks good.
BUY POINT: 40.23, on volume of 21 million or better. Stop loss: Just below the 50 day MVA at 37.
POSITION: Stock and/or July $30 calls to buy (UBF GF).
http://www.investmenthouse.com/cd/brcd.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. TQNT and GMST were covered earlier this week and are showing improvement.
TQNT (Triquint--$29.03; +2.24; optionable (TQN): Semiconductor
http://biz.yahoo.com/p/t/tqnt.html
STATUS: Looked at this stock last Wednesday on a stronger move up from the 10 day MVA (currently 24.21). After pulling back the next session, the stock headed higher on a slight volume rise, then got a shot Monday for the move up to the resistance at the 30 level. The high of 29.48 tested that level. We are looking for a move up to the 200 day MVA (35.14). April high is 29.83. Buying and money flow look great.
BUY POINT: Aggressive: Up from here on continued rising volume. Watch resistance at 29.83-30.00. Stop loss: 27.
POSITION: Stock and/or August $25 calls to buy (TQN HE).
http://www.investmenthouse.com/cd/tqnt.html
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
JDSU (Jds Uniphase--$21.39; +2.13; optionable (UQD): Diversified Electronics
http://biz.yahoo.com/p/j/jdsu.html
STATUS: Moved over the 10 and 18 day MVAs (20.97 and 21.03 respectively) on stronger, average volume (44.2 million). Looking for a run to the 50 day MVA (26.10) on continued rising volume, or at least a hold at the support until the stock can rally back up. The last time the stock made this run it broke the resistance; not saying it will this time, but the chance is there if the market is rallying well.
BUY POINT: Aggressive: Up from here on continued strong volume. Stop loss: 20.
POSITION: Stock and/or June $17.50 calls to buy (UQD FW).
http://www.investmenthouse.com/cd/jdsu.html
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
us stock market
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