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stock option, Breakout test
Begin part 2 of 3
THE PLAYS
Plays from the Monday night report:
CCUR: Turned down sharply after the breakout attempt.
CYTO: Continued to move higher but volume dropped off.
ISSI: Turned over hard on high volume after trying the breakout Monday.
TKLC: Continued the move, but very modest and on lower volume.
New Plays:
Downside:
Play Date: 01/13/2004
CAKE (Cheesecake Factory--$41.50; +0.50; optionable): Restaurants
http://biz.yahoo.com/p/c/cake.html
STATUS: Put. CAKE double topped in December just below 45 and then broke below the 50 day MVA (41.86) Friday on strong volume. It has moved up to tap that level the past two sessions, reaching up on the high but then falling back to close. Volume backed off as it made the test. This is our favorite entry point for downside plays: after the failed attempt to recover the broken support level.
Volume: 556.089K Avg Volume: 535.442K
BUY POINT: $41.18 Volume=700K Target=$38 Stop=$41.88
POSITION: CFQ NI - Feb. $45p (-89 delta)
http://www.investmenthouse.com/ci/cake.html
Upside:
Play Date: 01/13/2004
CORI (Corillian Corp.--$6.54; +0.59; no options): Internet service providers
http://biz.yahoo.com/p/c/cori.html
STATUS: Double bottom w/handle. CORI is making the breakout move from its 11 week base that formed over the 50 day MVA (5.74). A base that holds that level when it forms indicates that big money is stepping in to support the stock. Accumulation is an excellent 4 to 1 (4 up weeks on rising volume to 1 down week on rising volume), another sign of big money support. Money flow is jumping up ahead of the stock. CORI jumped up off th e18 day MVA Tuesday on strong volume, turning in an excellent move in a selling market. A good point to enter as it is still just over the 50 day MVA, but we want to see the move to continue on volume.
Volume: 826.809K Avg Volume: 831.466K
BUY POINT: $6.68 Volume=1.2M Target=$8 Stop=$6.21
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/cori.html
Play Date: 01/13/2004
SNUS (Sonus Pharmaceutical--$6.20; -0.10; no options): Diagnostic substances
http://biz.yahoo.com/p/s/snus.html
STATUS: Testing the breakout. SNUX exploded out of a 10 week base to start the month, surging to 6.50 on strong volume. It has spent the past two sessions testing that move, tapping the 10 day MVA (5.80) on the Tuesday low befor ea furious rebound recovered most of the losses. Volume rallied as it cut the losses, a good sign that buyers came in to support it. We expect SNUS to test back toward the 10 day MVA again before making the continued breakout run. Accumulation in the base is an outstanding 5 to 1.
Volume: 199.651K Avg Volume: 112.695K
BUY POINT: Test 5.80ish, then 6.22; Breakout: $6.55 Volume=175K Target=$7.95 Stop=$6.09
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/snus.html
Play Date: 01/13/2004
IDEV (Interneuron Pharma--$6.95; +0.67; no options): Drugs
http://biz.yahoo.com/p/i/idev.html
STATUS: Flat. Making the breakout move from a nice 7 month flat base sporting excellent 11 to 2 accumulation, IDEV was roaring higher on strong volume Monday. The pattern was very tight and quiet, setting up a good breakout. The last time this stock came out of a multi-month base it doubled. We will take that if it gets there, but our initial target is much more modest.
Volume: 2.312M Avg Volume: 314.54K
BUY POINT: $7.12 Volume=500K Target=$8.55 Stop=$6.48
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/idev.html
End part 2 of 3
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stock option
Breakout test
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