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yahoo stock, us stock market
Begin Part 2 of 2
TEAM TRADES
BORL: We bought BORL in early June when it broke out of its cup with handle pattern. After a nice run and lateral consolidation, it jumped again. It showed a doji Friday and started to sell today. We want to keep the stock, so we sold some July $12.50 calls today for $2.70 with the intent to let the stock fall to 13.50 or so and then buy them back if the stock starts back up. We bank some money and keep the stock. That is what we mean by selling calls on stocks we want to hold.
TTIL: TTIL was covered on the weekend report (Daily). The stock broke out of a cup with handle in May, and today broke out of an ascending wedge that formed after the test. This morning it set off an alert at 9:10 (CT); after closing Friday at 19.44, the stock was moving up early, hitting 19.99. Volume was still quite low, however, coming in at 22,800. Average daily volume is low anyway at 62,000, and we were looking for stronger numbers than Friday (58,600). However, it was still early, and this stock was ready to make a breakout. 20.23 was the buy point.
It made it to 19.99 (the early intraday high) and began a sideways movement. Volume continued to pick up though, so we kept an eye on that. At about 10:30 volume started to pick up, so we looked at the bid and ask on the stock: it was trading at 19.98 by 19.99. A clothesline chart revealed an ascending wedge pattern intraday, and on the building volume it looked like the thing would move. We put in a bid at 20 and got the fill at 10:34. Volume surged and the stock ripped up in the next minute what timing hit 20.75, pulled back to test 20.50, then tore up again, hitting the day's high of 21.56 (took out the December highs on that move). It pulled back again and by 2:14 was at 20.85, with volume at 112,000. That was the closing price for the day, but volume did move up to 131,000 by market close. That's good breakout volume for the stock, since the minimum requirement is about 84,000. The stock didn't quite make our target of $22, which is at the level of some resistance, though it did pull off that high. It just might pull back from here, but 20 looks like good support, so if it stays above that, we'll ride it for a bit.
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: TTIL broke out today! LEN is holding up nicely on low volume, and many other stocks are doing the same as we got a low-volume day in the market. Pretty quiet out there, so we are looking for pullbacks to support, and those patterns that continue to set up.
Best Plays:
1) SIB: Looking for a breakout.
2) ADBE: A tight doji on lower volume.
3) BBBY: At support on low volume.
New:
SIB (Staten Island Banc--$28.26; +0.41; no options): Regional Banks
http://biz.yahoo.com/p/s/sib.html
STATUS: SIB has trended up since fall 2000, and currently in an ascending wedge/flat base pattern with a high at 28.75. That high is one of three over the last three days resistance the stock is fighting as it tries to break out. The strongest surge in volume came Thursday a volume spike with the stock holding in the tightened tail of the pattern, but volume decreased since that time (down to 77,300; avg. is 69,045). We are looking for a breakout over the highs; until then, look for support at the 10 and 18 day MVAs to hold the stock (27.91 and 27.78, respectively). The stock shows huge money flow and high relative strength. Initial target: $32.
BUY POINT: Over 28.75 on volume in the range of 93,000. Stop: 26.45.
POSITION: Stock.
http://www.investmenthouse.com/cd/sib.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
FRX moved back over the short term MVAs today as volume dropped off sharply. That is a good sign.
Previous Leaders: SEBL gapped higher for a move on higher volume, breaking a short term down trendline.
ADBE (Adobe Systems--$46.95; -0.05; optionable ( )): Application Software
http://biz.yahoo.com/p/a/adbe.html
STATUS: ADBE popped up on good volume Thursday, held with a doji Friday, and as volume dropped back Monday (to 3.2 million; avg. 4.2 million), pulled back slightly with a tightened doji. The stock is in a flat base ranging pattern and broke over its short term down trendline a week ago. We are looking for a continued pullback as volume decreases further, with the stock finding support at 45-46 (10 day MVA, 45.06). Money flow keeps trending higher. Initial target: 200 day MVA, currently at 52.46.
BUY POINT: Over 48.13 on volume in the range of 4.6 million or higher. Stop: 44.28 (18 day MVA, 44.05).
POSITION: Stock and/or October $40 calls to buy (AEQ JH).
http://www.investmenthouse.com/cd/adbe.html
EBAY (Ebay--$68.17; -0.32; optionable (QXB): Internet Software
http://biz.yahoo.com/p/e/ebay.html
STATUS: The stock is pulling back in a handle to the 9.5-month base, closing Monday just above support of the 10 day MVA (67.98). The handle is forming as a test of the stock's recent breakout from an ascending wedge it formed in the upper right side of the base. The buy point in that pattern was 66.63, and the stock can pull back further to test that, which is just above the 18 day MVA (at 66.53). It just might do that if the ISSX warning ripples through software. That may not effect EBAY, but the close nearer the low (the stock showed a doji), and the short handle (thus far) to the long base, are enough to suggest that possible continued pullback. Volume dropped back again to 3.7 million (avg. 6.1 million). Target: $77-78.
BUY POINT: Aggressive: Up from the 18 day MVA (66.53) or higher, on average or better volume. Stop: 61.21. Breakout: 71.42, on volume of 9 million or better. Stop: 65.71.
POSITION: Aggressive: Stock and/or October $55 or $60 calls to buy (QXB JK or JL). Breakout: Stock and/or October $60 or $65 calls to buy (QXB JL or JM).
http://www.investmenthouse.com/cd/ebay.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.
We are looking at the small and mid-cap stocks for leadership as the economy improves. IGT, a play on the weekend report, made another move up on slightly higher volume. It's ready to go once volume kicks in.
BBBY (Bed Bath & Beyond--$30.41; -0.79; optionable (BHQ): Retail
http://biz.yahoo.com/p/b/bbby.html
STATUS: BBBY is forming an ascending wedge-type pattern above the 50 day MVA, which has supported the dips in the pattern. Currently the stock is holding just above the 10 day MVA (30.29; 18 day MVA is at 30.17). The low tested other price support at 30 before the stock closed back over the support level. Volume, too, was lower, still falling off rapidly from Thursday's high levels (Monday down to 1.8 million; avg. 3.5 million).
We look for a hold here, although another bounce from the 50 day MVA (29.29) would
still keep the pattern intact. Upper resistance is at 32-32.61. Target: $37.
BUY POINT: Breakout: Over 32.61 on volume in the range of 4.5 million. Stop: 30, just below the short term MVAs.
POSITION: Stock and/or August $25 or $27.50 calls to buy (BHQ HE or HY).
http://www.investmenthouse.com/cd/bbby.html
HI (Household Internat--$66.60; -0.10; optionable (HI): Credit Services
http://biz.yahoo.com/p/h/hi.html
STATUS: Has formed an ascending wedge-type pattern in a short base that formed off the May high of 69.98, having pulled back on low volume back to the 50 day MVA (currently at 64.84). After testing that level, the stock moved back up and then down for another dip in the pattern, and is currently back over the short term MVAs (the 10 day was tested on the low of 66). Upper resistance in the pattern is at the June high of 67.45. Volume was back down (from some strong, above average days in the last 2 weeks) to 1.34 million Monday, reflecting that of the market. Look for a strong move over 67.45 on strong volume, though the stock can easily test back to the 10 or 18 day MVAs first.
The high volume in the pattern is not great, but we like the lower numbers today. Target:
$78.
BUY POINT: Aggressive: Over 67.45 on average or higher volume. Stop: 62.
New high: Over 70 on volume in the range of 2.4 million. Stop: 64.40 (just under the 50 day MVA). Average volume for the stock is 1.8 million.
POSITION: Aggressive: Stock and/or October $60 calls to buy (HI JL). New high: Stock and/or October $65 or $70 calls to buy (HI JM or JN).
http://www.investmenthouse.com/cd/hi.html
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
Time for 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.
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yahoo stock
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