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stock option, Breakout test
Begin part 2 of 3
THE PLAYS
Plays from the weekend report:
CCUR: Gapped higher on volume but could not make much of it in a volatile session.
CRA: Nice volume surge up off the 10 day MVA.
OPSW: Shot higher on volume but could not hold the move so we held off moving in. Still solid, and if it starts back up it is a buy.
PROX: Nice blast higher.
SEAC: Another nice blast higher.
New Plays:
Play Date: 01/26/2004
CBST (Cubist Pharmaceuticals--$15; 0; optionable): Drugs
http://biz.yahoo.com/p/c/cbst.html
STATUS: Testing the breakout. CBST is holding over the 10 day MVA (14.49) on a nice, and orderly pullback to test the breakout. Two weeks back it broke higher on strong volume out of an 18 week cup base sporting excellent strong 5 to 2 accumulation (5 up price weeks on rising volume to 2 down price weeks on rising volume). That shows us there is buying during the base, and we like it held over the 200 day MVA as it formed, another sign of institutional support. Money flow shot higher on the breakout, and it is holding up on this test. Looks ready to continue the move higher. Earnings: Early February
Volume: 365.853K Avg Volume: 531.045K
BUY POINT: $15.48 Volume=725K Target=$18.58 Stop=$14.45
POSITION: UTU EC - May $15c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/cbst.html
Play Date: 01/26/2004
DUSA (Dusa Pharma--$7.1; +0.63; no options): Drugs
http://biz.yahoo.com/p/d/dusa.html
STATUS: Double bottom w/handle. DUSA is making the breakout move from a 15 week base with excellent 6 to 2 accumulation. It formed over the 50 day MVA (5.56), key support that shows big money supporting it at this key level (the 200 day is another key big money level). Monday DUSA was breaking out on strong volume, following money flow higher. Relative strength broke out as well, a very good sign for the run ahead. Earnings: Early February
Volume: 223.3K Avg Volume: 100K
BUY POINT: $7.18 Volume=150K Target=$8.75 Stop=$6.64
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/dusa.html
Play Date: 01/26/2004
QTWW (Quantum Fuel Sys.--$10.06; +0.83; optionable): Fuel systems for alternative fuel vehicles
http://biz.yahoo.com/p/q/qtww.html
STATUS: Cup. A new issue in July 2002, QTWW is forming its first real base after a break higher this summer. It is curently trying to make the breakout from a 15 week base sporting solid 4 to 2 accumulation. Money flow is running up ahead of the stock even as price starts higher. Volume has swelled the past two weeks, and Monday, after a brief pullback last Thursday and Friday, it jumped on strong volume. Very solid and we love relatively new issues that breakout from bases to new highs as they can run for quite some time. Earnings in March.
Volume: 876.414K Avg Volume: 337K
BUY POINT: $10.36 Volume=506K Target=$12.55 Stop=$9.63
POSITION: TQD GB - July $10c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/qtww.html
Play Date: 01/26/2004
RTEC (Rudolph Technologies--$28.1; +0.5; optionable): Scientific & technical instruments
http://biz.yahoo.com/p/r/rtec.html
STATUS: Testing the breakout. RTEC formed a 10 week cup base over the 50 day MVA (25.53), a good sign of institutional support for the stock: when it gets to this key level, buyers move in to accumulate it. A very nice base sporting solid 3 to 1 accumulation and surging money flow. Monday the stock shot higher on tremendous volume. Looks ready to continue the breakout move higher.
Volume: 552.298K Avg Volume: 280.454K
BUY POINT: $28.94 Volume=421K Target=$34.75 Stop=$27.25
POSITION: UXH EE - May $25c (77 delta) or UXH EF - May $20c (41 delta) &/or Stock
http://www.investmenthouse.com/ci/rtec.html
End part 2 of 3
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stock option
Breakout test
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