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stock option, buy stock
Begin part 2 of 3
THE PLAYS
Plays from the Wednesday night report:
CDCY: Tride to make the rebound, gapping higher but then giving back the move.
STXN: Heavy volume as it broke out though it closed well off its high. Still a good start to the move.
SVVS: Huge breakout on excellent volume.
CTRA: Another big break higher on strong trade.
CKP: Still testing and getting ready to bounce from this test.
New Plays:
Play Date: 01/15/2004
ASIA (Asiainfo Hldgs--$9.41; +0.66; optionable): Chinese telecom network integration
http://biz.yahoo.com/p/a/asia.html
STATUS: Cup w/handle. This pattern is similar to SINA's before it blasted higher, helped by an agreement with YHOO. ASIA is starting the brekaout from a 6.5 month base showing excellent 6 to 2 accumulation (6 up price weeks on rising volume to 2 down price weeks on rising volume). That shows that even during the pullback the stock was being slowly accumulated. This year more turned to China stocks and ASIA moved up on stronger trade. It moved laterally this week on lower volume, shaking out the last sellers, and then jumped Thursday on strong, strong volume. This is the breakout move and we are ready to get on board on a further solid volume move.
Volume: 3.945M Avg Volume: 713.909K
BUY POINT: $9.54 Volume=1.1M Target=$11.48 Stop=$8.87
POSITION: EUJ GB - July $10c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/asia.html
Play Date: 01/15/2004
FCS (Fairchild Semiconductor--$27.80; 0.00; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/f/fcs.html
STATUS: Cup w/handle breakout. Thursday FCS was on the move, makign a high volume breakout from its 6 week base. The base used the 50 day MVA (24.03) on the lows as support, a good sign of big money stepping in to buy at that important support level. Accumulation is solid at 3 to 1, another indication of big money buying into the stock as it consolidates. Thursday it reported strong earnings, beating the street by 4 cents and guiding higher. We like that it has already reported earnings. Looking for positions on a further move higher and then again on a test of the breakout.
Volume: 4.406M Avg Volume: 1.795M
BUY POINT: $27.94 Volume=2.2M Target=$33.52 Stop=$25.98
POSITION: FCS EE - May $25c (75 delta) &/or Stock
http://www.investmenthouse.com/ci/fcs.html
Play Date: 01/15/2004
PWAV (Powerwave Technologies--$9.73; +0.3; optionable): Telecom equipment
http://biz.yahoo.com/p/p/pwav.html
STATUS: Cup w/handle. Very nice 18 week base sporting solid 5 to 3 accumulation and money flow that is surging ahead of price, leading the way toward a breakout. The base formed over the 200 day MVA (6.86), a key support level. Looks solid, just waiting for a high volume move to break it out over near resistance in the handle. Earnings January 22.
Volume: 4.416M Avg Volume: 3.238M
BUY POINT: $10.42 Volume=4.9M Target=$12.54 Stop=$9.69
POSITION: VFQ EB - May $10c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/pwav.html
Play Date: 01/15/2004
SSPX (SSP Solutions--$1.74; -0.02; no options): Network data security solutions
http://biz.yahoo.com/p/s/sspx.html
STATUS: Double bottom w/handle. Volume is starting to jump as SSPX moves toward the breakout from its 10 week base that formed roughly at the 50 day MVA (1.43) on the lows. Solid accumulation at 4 to 2 and money flow is surging, running well ahead of price. The strong volume shows a lot of interest in the stock, and we are looking for the stock to follow money flow higher.
Volume: 666.66K Avg Volume: 279.318K
BUY POINT: $1.88 Volume=419K Target=$2.45 Stop=$1.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/sspx.html
End part 2 of 3
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