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buy stock, Breakout test
Begin part 2 of 3
THE PLAYS
Plays from the Tuesday report:
CANI: Roared higher on volume but gave back a chunk of the move.
INFA: Stalled on the breakout, coming back on lower volume.
UTEK: Held up well in spite of the selling in the chip sector. Still looks good after this pause.
New Plays:
Play Date: 01/21/2004
ABGX (Abgenix--$15.33; +0.34; optionable): Biotechnology
http://biz.yahoo.com/p/a/abgx.html
STATUS: Cup w/handle. Volume surged Wednesday as ABGX is showing some volume spikes as it looks ready to make the breakout from the handle to its 18 week base. Accumulation in the pattern is a solid 6 to 3 (6 up weeks on rising volume to 3 down weeks on rising volume). Money flow is strong as well, surging higher as the stock moved laterally the last 8 sessions. Very nice base consolidating the move up from the low for the stock in February. Nice pattern.
Volume: 3.223M Avg Volume: 1.228M
BUY POINT: $15.98 Volume=1.8M Target=$19.18 Stop=$14.74
POSITION: AZG GC - July $15c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/abgx.html
Play Date: 01/21/2004
DVA (Davita--$39.70; +0.75; optionable): Specialized health
http://biz.yahoo.com/p/d/dva.html
STATUS: Ascending triangle. After a strong breakout and surge from May, DVA is now working on an 11 week base sporting excellent 4 to 1 accumulation. The base has used the 50 day MVA (37.90) as support, an important level where the big money has moved in to buy the stock, starting the bumps higher. It is building pressure from below as it bangs into the top at 40. Volume has surged the past 4 sessions, a good sign as it moves back up to the breakout point.
Volume: 472.1K Avg Volume: 336.045K
BUY POINT: $40.08 Volume=504K Target=$46 Stop=$38.68
POSITION: DVA GH - July $40c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/dva.html
Play Date: 01/21/2004
MEDT (Medsource Technologies--$5.24; +0.44; optionable): Medical instruments
http://biz.yahoo.com/p/m/medt.html
STATUS: Cup w/handle. Volume is surging the past two weeks, indicating it is getting ready for an important move. It is a 4.5 month base with excellent 7 to 2 accumulation and money flow that has surged. Looks ready for the breakout and has room to run.
Volume: 396.474K Avg Volume: 124.181K
BUY POINT: $5.42 Volume=200K Target=$6.78 Stop=$5.04
POSITION: QWT EA - May $5c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/medt.html
Play Date: 01/21/2004
PLXT (PLX Technology--$10.15; -0.29; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/p/plxt.html
STATUS: Reverse head and shoulders. PLXT held up remarkably well in the NASDAQ selling, holding easily over the 10 day MVA (9.94) on lower, average volume. It is in a 10 week base that formed over the 50 day MVA (8.98), indicating that the big money stepped in to buy the stock at that point. Solid money flow and accumulation is positive at 3 to 2. After this pullback we are looking for a break higher as NASDAQ recovers.
Volume: 131.522K Avg Volume: 152.318K
BUY POINT: $10.62 Volume=228K Target=$12.78 Stop=$9.88
POSITION: PIU GB - July $10c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/plxt.html
Play Date: 01/21/2004
TLAB (Tellabs--$10.51; -0.38; optionable): Telecom equipment
http://biz.yahoo.com/p/t/tlab.html
STATUS: Testing the breakout. TLAB surged this month on strong volume, breaking out from a 4 month flat base. The telecoms have enjoyed strong buying this year and are pulling back some this week on the NT and LU earnings. This is giving an opportunity as the selling has been on lower volume, indicating no dumping of the stock. Looking for a test of the 10 day MVA (10.08) or thereabouts and then a move back up on stronger volume. That is when we move in.
Volume: 4.941M Avg Volume: 4.722M
BUY POINT: Test 10, then 10.38. From Wednesday close: $10.62 Volume=7.1M Target=$12.88 Stop=$9.96
POSITION: TEQ FB - June $10c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/tlab.html
End part 2 of 3
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buy stock
Breakout test
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