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stock pick, stock option
Begin part 2 of 3
THE PLAYS
Plays from the Tuesday night report:
CAKE: Had a change of heart and jumped back through the 50 day MVA on rising volume.
CORI: Excellent volume as it continued its move higher.
SNUS: Continued the handle formation on very low volume.
IDEV: Took a pause on lower volume before it continues its move.
New Plays:
Upside:
Play Date: 01/14/2004
CDCY (Compudyne--$11.24; +0.44; no options): Security & protection services
http://biz.yahoo.com/p/c/cdcy.html
STATUS: Testing the breakout. CDCY blasted out of a 7 month base to start the year, running to 12.44 on the high. The past week it has come back to test the breakout, dropping to the 18 day MVA (10.83) where it has found support. Wednesday it started back up, but it needs better volume. An excellent base and breakout; relative strength broke out with the stock, an indication of the strength of the overall move. Money flow has been very strong, and is already heading back up ahead of the stock price. Volume has been excellent. Looking to move in on a higher volume move back up.
Volume: 121.381K Avg Volume: 71.545K
BUY POINT: $11.48 Volume=107K Target=$13.78 Stop=$10.73
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/cdcy.html
Play Date: 01/14/2004
STXN (Stratex Networks--$5.05; +0.07; no options): Telecom equipment
http://biz.yahoo.com/p/s/stxn.html
STATUS: Cup w/handle. STXN has rallied back up to its October high at 5 and is now moving laterally, forming a handle to the 13 week base. This is the part of the base where the stock approaches the pre-correctoin high and loses momentum as some of those that bought at the prior high sell out to get out 'even.' When they are finished selling the last sellers are gone and the stock can make its breakout. Accumulation in the base is solid at 4 to 2 (4 up price weeks on rising volume to 2 down price weeks on rising volume); that shows buyers were still moving in even as the stock worked through the consolidation. Excellent money flow has already turned up ahead of price. Volume was up Wednesday as the stock edged higher. Looking for another strong surge as it makes the breakout move.
Volume: 1.03M Avg Volume: 389.454K
BUY POINT: $5.26 Volume=584K Target=$6.58 Stop=$4.89
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/stxn.html
Play Date: 01/14/2004
SVVS (Savvis Communications--$1.95; +0.20; no options): Internet services
http://biz.yahoo.com/p/s/svvs.html
STATUS: Breakout. SVVS is in the process of making the breakout from a 5.5 month cup with handle base. Volume exploded Wednesday as SVVS surged through the breakout point. Accumulation in the pattern is an outstanding 8 to 1; even as it moved laterally the stock was under heavy accumulation. Money flow is surging and relative strength broke out with the stock; that gives the play a lot of strength. Looking to pick it up on a further solid move over 2.
Volume: 2.261M Avg Volume: 262K
BUY POINT: $2.02 Volume=393K Target=$2.62 Stop=$1.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/svvs.html
Continuing play that is pulling back and ready to go:
Play Date: 01/14/2004
CTRA (Centra Software--$4.86; +0.17; no options): Business software
http://biz.yahoo.com/p/c/ctra.html
STATUS: Testing the breakout. CTRA is moving laterally over the 10 day MVA (4.62) after a tremendous breakout move 8 sessions back that took it out of a solid 4 month base that formed along the 50 day MVA (4.01). Volume has dropped off well below average the past three sessions as it moves laterally, indicating no selling. In these flat breakout tests (a.k.a., flying plateaus), when the 10 day MVA rises up to meet the stock that typically starts the next move. Money flow is excellent and is still moving up ahead of price even as the stock moves laterally.
Volume: 123.693K Avg Volume: 226.727K
BUY POINT: $5.04 Volume=305K Target=$6.32 Stop=$4.61
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/ctra.html
End part 2 of 3
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stock pick
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