|
|
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: COO made the buy point in its cup with handle, but volume was lower. That may improve tomorrow, however. PHLY, covered 6-13, broke out today after testing the breakout. ESCM, covered 6-23, still looks great in the ascending wedge pattern; check out that report for buy points. Remember, on breakouts from such patterns volume should be at least 1.35 times the average daily volume (1.5 times that for cup with handles and double bottoms). Speaking of double bottoms, check out LEN below!
Best Plays:
1) LEN: Getting ready for a breakout.
2) ANSS: In a pennant.
3) VRSN: Getting ready for a rally.
A previously covered stock:
LEN (Lennar--$42.16; +0.90; optionable (LEN): Materials & Construction
http://biz.yahoo.com/p/l/len.html
STATUS: The stock has formed a double-bottom with handle pattern. The right leg of the pattern formed on a June 20 bounce from the 200 day MVA (currently at 36.11), when the stock gapped hugely on a strong earnings and future revenues report. It reached a high of 42.75 on that run (the handle high), and is now consolidating above support of its 50 day MVA (simple, 40.69) on the pullback. Wednesday the stock moved up from that support, though volume was lower at 525,000 (avg. 930,000). Look for stronger volume for the breakout. Good money flow. Target: May high of 46.69.
BUY POINT: Breakout: 42.88, on volume of 1.4 million or more. Stop: 39.45 (18 day MVA is at 39.41).
POSITION: Stock and/or August $35 calls to buy (LEN HG).
http://www.investmenthouse.com/cd/len.html
New Play: A pennant.
ANSS (Ansys--$15.79; +0.20; no options): Technical & Systems Software
http://biz.yahoo.com/p/a/anss.html
STATUS: The stock is in a tightening pennant that formed above its 50 day MVA (14.76), most recently as it squeezes down finding support at the 18 day MVA (15.48).
Volume keeps dropping off below average, falling Wednesday to 42,200 (avg. 130,000).
The stock made a small move up from its 10 day MVA (15.58), and we'll look for a stronger move on the breakout. Pattern high is 16.95. ANSS shows huge money flow and great buying, and relative strength is ahead of price, which is a bullish sign. Target:
$20.
BUY POINT: 17.08, on volume in the range of 176,000. Stop: 15.71 (18 day MVA, 15.48).
POSITION: Stock.
http://www.investmenthouse.com/cd/anss.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. We are "weeding" the portfolios this weekend.
THE LEADERS: We have revamped this portfolio, dropping for now CPN, SGR, NATI and BRKS. Those stocks have, for the most part, dropped off and need to form bases or do some more work in ones already existing. To the New Leader section we are adding DGX, EBAY, FRX, PSFT, ADVS, and BMET. In the Previous Leader section, VRSN, VRTS, ADBE and SEBL are retained. Ones dropped include AMCC, ARBA, BEAS, BRCD, CIEN, EMC, EXTR, GLW, JNPR, NEWP, NTAP, PMCS and SCMR. All of these stocks will be kept on watch in context with improvement in their sectors and the market.
New Leaders: ESRX, LLL, ACS, NVDA, DGX, EBAY, FRX, PSFT, ADVS, BMET
Previous Leaders: ADBE, SEBL, VRSN, VRTS
ADBE is holding steady, and FRX continues to hold support while volume drops off steadily; please see the 6-23 report for buy point and other details.
EBAY (Ebay--$68.60; +0.24; optionable (QXB): Internet Software
http://biz.yahoo.com/p/e/ebay.html
STATUS: The stock showed a tight doji Wednesday, up from a test of the 10 day MVA on the low of 68.01. Off the Monday high (71.29), the stock looked ready to run that day but pulled back instead, and looks ready to form handle to the 9-month base. EBAY recently broke out of an ascending wedge that formed in the upper right side of that base. We are looking for a complete test back to the 10 day MVA (67.35) on continued decreasing volume, ahead of a breakout. Strong money flow and good buying. Initial target: $77-78.
BUY POINT: Aggressive: Up from the 10 day MVA (67.35 range) on rising volume.
Stop: 63.11. Breakout: 71.42, on volume of 9 million or better. (Wednesday's volume down to 5 million; avg. 6 million). Stop: 65.71 (18 day MVA, 65.63).
POSITION: Stock and/or October $60 calls to buy (QXB JL). Breakout: Stock and/or October $60 or $65 calls to buy(QXB JL or JM).
http://www.investmenthouse.com/cd/ebay.html
VRSN (Verisign--$57.29; +0.60; optionable (VUQ)): Internet Software & Services
http://biz.yahoo.com/p/v/vrsn.html
STATUS: The stock has held above its 50 day and short term MVAs for the last week, moving down from a Monday high that tapped 60.50. The stock saw some selling Tuesday, but volume dropped back Wednesday (to 5.88 million; avg. 8.3 million) as the stock showed a tight doji above the support (it tested both the 10 and 18 day MVAs, at 56.34 and 55.95, respectively). That suggests a move back up on a surge in volume, which we look for in a market rally. That Monday high can pose resistance. Money flow is strong. Target: $67-70.
BUY POINT: Aggressive: Over 61 on average or better volume. Stop: 56.12 (between the 10 and 18 day MVAs).
POSITION: Stock and/or August $55 or September $50 calls to buy (QVR HK OR QVR IJ, respectively).
http://www.investmenthouse.com/cd/vrsn.html
UP & COMERS PORTFOLIOS: We have revamped the Up & Comers portfolio, and are dropping EXDS, TQNT, BVSN, SANM, PKI and GMST for now, adding BBBY, IGT, RCII, CHS, KG and AEOS.
LNCR, BJ, ANF, LOW, HI, THQI, BBBY, IGT, RCII, CHS, KG, AEOS.
RCII moved up on stronger volume as expected.
BJ (Bj's Wholesale Club--$52.45; +0.55; optionable (BJ): Retail
http://biz.yahoo.com/p/b/bj.html
STATUS: Finally a chance to get in. The stock has been pulling off the June closing high of 54.53 for the last three days, and held at the 18 day MVA (51.89) both yesterday and today. Wednesday it made a move over the 10 day MVA to hit a high of 53.18, but dropped back below the moving average (52.66). Volume was higher, breaking above average to 834,800 (avg. 688,000). We are looking for the stock to hold at the 18 day until it can rally back over today's high in a strong rally. Showing strong money flow. BJ should have held the high on the strong volume, but we will look for another move up as long as it holds the current support. Target: $60.
BUY POINT: Aggressive: Over 53.18 on continued rising volume. Stop: 48.93 (just below the 50 day MVA at 49.07). New high: Over the June high (54.53) on higher volume. Stop: 50.17.
POSITION: Stock and/or September $45 calls to buy (BJ II).
http://www.investmenthouse.com/cd/bj.html
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
Time or a new survey on what stocks members want in the portfolio. Let us know with an email, and we will compile the stocks with the most suggestions! Thanks to those who have already sent in picks we really appreciate it!
Good Investing!
Jon L. 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.
|
yahoo stock
us stock market
|
