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yahoo stock, us stock market
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.
Best Plays: WM on last night's report continued its breakout, EFX carried through on a strong breakout today, and AW is moving after testing its recent breakout. LOW continued up on stronger volume.
Best Plays:
1) HF: Breaking out and still a buy.
2) SRCL: Ditto.
3) AEOS: Looking for a continued move up.
4) ESRX: And for a run into its split.
New:
HF (Heller Financial--$37.01; +1.89; optionable (HF): Credit Services
http://biz.yahoo.com/p/h/hf.html
STATUS: Making a breakout move from a short cup with handle base. The stock remains a buy on this move, but we want to see volume come in stronger (as it was a bit lower today at 467,400; avg. 399,000). The previous closing high in the base is 37.25, but the actual high of 39.29 was reached intraday at the end of March. The stock shows strong money flow and good buying. Target: $40-42.
BUY POINT: Remains a buy on this breakout up to 38.15. Stop: 34.41 (50 day MVA, 34.05).
POSITION: Stock and/or October $35 calls to buy (HF JG).
http://www.investmenthouse.com/cd/hf.html
SRCL (Stericycle--$48.00; +2.20; optionable (URL): Materials & Construction: Waste
http://biz.yahoo.com/p/s/srcl.html
STATUS: Making a strong move to break out of a double bottom with handle pattern. The handle pulled back to the 10 day MVA (45.68), support from which the stock bounded up today, moving over the buy point of 47.34. Volume was strong at 337,200 (avg. 248,227). The stock shows good money flow and high relative strength, and remains a buy on the breakout. The base formed after the stock topped out on a breakout from a cup with handle. Target: $52-54.
BUY POINT: A buy up to 49.71 on the breakout. Stop: 44.64 (18 day MVA, 44.85).
POSITION: Stock and/or August $40 or $45 calls to buy (URL HH or HI).
http://www.investmenthouse.com/cd/srcl.html
A previously covered stock:
AEOS (American Eagle Outfitter--$38.59; +2.21; optionable (AQU): Retail
http://biz.yahoo.com/p/a/aeos.html
STATUS: The stock saw stronger, average volume today (1.64 million), and that boosted it back over resistance of the 50 day and short term MVAs. The move broke a short term down trendline while the intraday high tested other resistance at 39.30. Look for a move over 40, other more staunch price resistance from May and February. The stock is looking good, with strong money flow and relative strength that has broken out ahead of price. Target: Initially, the May high at 43.
BUY POINT: Over 40 on volume in the range of 2 million. Stop: 37.18, the 18 day MVA.
POSITION: Stock and/or August $35 calls to buy (AQU HG).
http://www.investmenthouse.com/cd/aeos.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:
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
ACS is holding steady and showing another doji. NVDA sold down to its 50 day MVA, so we will see if it holds support there.
ESRX (Espress Scripts--$106.37; -0.62; optionable (HTQ): Health Services
http://biz.yahoo.com/p/e/esrx.html
STATUS: The stock hit a high Friday of 110.35 (close to our initial target of $111) but pulled back the last two days. ESRX on today's low (103.76) tapped near support of the 18 day MVA (102.97), then moved back up to close over the 10 day MVA (105.79) and showing a doji and finishing in the top half of the range. Volume was much stronger on the move, up to 1.16 million (avg. 658,000). The stock is due to split Monday, and we are looking for a possible run up to that event; the stock has been strong lately. Today's move has upside momentum; look for a move up after a possible test of the 10 day MVA. Target: $120.
BUY POINT: Aggressive: Up from here on continued strong volume. Stop: 98.92.
New high: Over 111 on continued strong and rising volume (1.5 million or more). Stop: 103.23 (just above the 18 day MVA, 102.97).
POSITION: Both: Stock and/or August $100 calls to buy (XTQ HT).
http://www.investmenthouse.com/cd/esrx.html
Previous Leaders:
SEBL (Siebel--$41.90; +3.61; optionable (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: On the ORCL earnings news, SEBL popped up on stronger volume (25 million; avg. 17 million), opening on a gap up at the 10 day MVA (43.60). From there the stock moved a few cents higher, but ended the day closing lower but above the intraday low of 40.71, a low that tested support at the 40 level. The higher volume and gap higher are bullish signs, but the close down isn't. However, we will see what the market can offer the stock from here. We have had letters from readers concerned about our playing SEBL to the downside; that does not mean that we don't like the stock for the long term. We do, but are always ready to seek profit when the opportunity presents itself. As it turned out, SEBL did not give us the recent downside play, instead holding near that 38-40 support level. If SEBL can't break over the 50 day MVA (45 range) and the market begins to sell off in earnest, we will see what we might gain from a move back down. Upside target: Initially, $50.
BUY POINT: Over 45 on continued strong volume. Stop: 41.85.
POSITION: Stock and/or August $35 or $40 calls to buy (SGW HG or HH).
http://www.investmenthouse.com/cd/sebl.html
UP & COMERS PORTFOLIOS: Newer members of the portfolio are LNCR, BJ, ANF, LOW, HI and THQI. Currently existing members are EXDS, TQNT, BVSN, SANM, PKI and GMST.
LOW made another move up on stronger volume, increasing on its breakout, but the move was smaller despite higher volume. ANF tried to hold on to its high, but after pulling off that high still just managed to close higher on the day. No other reports on stocks in this portfolio tonight.
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
No reports on stocks in this portfolio tonight.
Puts: CHKP moved up slightly today, and is currently at the resistance level (10 day MVA) noted in last night's report.
QQQ (Nasdaq 100--$41.82; -0.21; optionable (QQQ):
STATUS: Tapping near support on the low of 41.26. If the index breaks below that on continued selling (volume was higher at 73.3 million; avg. 69 million), we will look at the downside play. The index broke support of the 50 day MVA (46) seven days ago.
BUY POINT: Below 41 on continued rising volume.
POSITION: September $49 puts to buy (QQQ UW).
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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