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yahoo stock, top stock pick
Begin Part 2 of 2
THE PLAYS:
Reading the Plays: Please note that when we reference the 10, 18, and 50 day moving averages (MVA), those are exponential moving averages (EMA). The 200 day moving average is always simple (SMA). We will note when we reference a particular MVA differently, e.g., a simple 50 day MVA. Please click on the Yahoo and chart links for company and charting information.
Many good moves today of course. SDS, IRIC, SPF, and CPWR all made strong moves and are still looking good.
Best Plays:
1) LUV: An old favorite getting ready.
2) HDI: A core holding.
3) LOW: Strong bounce.
New:
LUV (Southwest Airlines--$19.81; +0.76; optionable):
http://biz.yahoo.com/p/l/luv.html
STATUS: An old friend of the report, a frequent splitter, returns as it has made a strong move up the past few weeks. The stock pulled back post-split and was trying to form the right side of its base but fell back out of it in early June, but after hitting back below 17 it has made a steady comeback, closing back over its 200 day MVA (18.97) yesterday and making a strong move today, which began with a gap up. Volume was just above average at 2.35 million, and the recent high from late-May is 20.03. Relative strength has broken out, and money flow is solid. Target: High of 23.34.
BUY POINT: Over 20.15 on increased volume. Stop: 18.74.
POSITION: Stock and/or September $18.38 calls to buy (LUP IS).
http://www.investmenthouse.com/cd/luv.html
HDI (Harley-Davidson--$49.75; +3.46; optionable): Motorcycles
http://biz.yahoo.com/p/b/bsml.html
STATUS: HD reported stellar earnings again, a new plant in the works, and its first new bikes in a decade. The stock shot up toward a breakout on huge volume (4.85 million; 1.244 million is average). This company continually outperforms expectations and when it breaks out from this big double bottom pattern with handle (9 months in duration), it is a good addition to anyone's core portfolio. Initial target: 60
BUY POINT: 50.12 on volume of 1.86 million.
POSITION: Stock and/or November $45 calls to buy (HDI KI).
http://www.investmenthouse.com/cd/hdi.html
THE PORTFOLIOS: Each report, we look at these to see which is in a buy position. We don't cover them all each time, just the ones that are looking as if they are ready to pick up a few shares.
THE LEADERS: We have revamped this portfolio, dropping for now CPN, SGR, NATI and BRKS. Those stocks have, for the most part, dropped off and need to form bases or do some more work in ones already existing. To the New Leader section we are adding DGX, EBAY, FRX, PSFT, ADVS, and BMET. In the Previous Leader section, VRSN, VRTS, ADBE and SEBL are retained. Ones dropped include AMCC, ARBA, BEAS, BRCD, CIEN, EMC, EXTR, GLW, JNPR, NEWP, NTAP, PMCS and SCMR. All of these stocks will be kept on watch in context with improvement in their sectors and the market.
New Leaders: ESRX, LLL, ACS, NVDA, DGX, EBAY, FRX, PSFT, ADVS, BMET.
Previous Leaders we are still interested in: ADBE, SEBL, VRSN, VRTS
UP & COMERS PORTFOLIOS: We have revamped the Up & Comers portfolio, and are dropping EXDS, TQNT, BVSN, SANM, PKI and GMST for now, adding BBBY, IGT, RCII, CHS, KG and AEOS.
LNCR, BJ, ANF, LOW, HI, THQI, BBBY, IGT, RCII, CHS, KG, AEOS.
ANF: Trying to recover.
CHS: wow
THQI (THQ, Inc.--$59.72; +1.72; optionable): Graphics software
http://biz.yahoo.com/p/t/thqi.html
STATUS: THQI just won't stop, but volume has not been stellar on the move up to the top of the ascending wedge it is forming (436,500; average is 579,181). We need to see a strong breakout from this pattern for new add-to positions in our accounts. We wanted it to test the 50 day MVA, but it just did not get back to that point on this move. Again, it needs a strong, high volume breakout. Target: 70
BUY POINT: 60.50 on volume of 870,000.
POSITION: Stock and/or September 55 calls to buy (QHI IK).
http://www.investmenthouse.com/cd/thqi.html
LOW (Lowe's--$36.58; +2.04; optionable): Home improvement
http://biz.yahoo.com/p/l/low.html
STATUS: LOW has made a dramatic move back over the 50 day MVA on rising, above average volume (5.97 million; average is 2.989 million). LOW and other retailers were on the ropes, but they made the move back that was needed. We are now looking to catch this bounce back up as we want to take positions with the institutions that are buying at this point as well. Like it. Need to watch the previous high at 39.86 as possible resistance. Target: 45
BUY POINT: 37.50 on continued above average volume.
POSITION: Stock and/or October 35 calls to buy (LOW JG).
http://www.investmenthouse.com/cd/low.html
CHS (Chico's--$33.70; +2.45; optionable): Apparel
http://biz.yahoo.com/c/l/chs.html
STATUS: Another great retail recovery from one of those retail stocks that is on the 'inside.' It gapped higher on the news its same store sales were up 15%. The move was again on rising, above average volume, something that has been the hallmark of this recovery (937,400; 414,800 is average). It cleared some interim resistance at 33 today, but it still has the old closing high at 35.02 to clear. We like it, and are willing to add to on a further move up, but just part of the position. We want to see an above average volume move over 35 to take larger positions.
BUY POINT: Aggressive: On a move up from here on continued strong volume. Breakout: over 35.02 on volume of 600,000 or better.
POSITION: Stock and/or August or November $30 calls to buy (COJ HF or COJ KF)
http://www.investmenthouse.com/cd/chs.html
MEMBER PORTFOLIO: BRCM, CHKP, CSCO, EMLX, IDTI, INTC, JDSU, MVSN, NT, PWER, SUNW, VTSS
Still tabulating the survey, so if you have any further stocks you want covered, send them in! Let us know with an email, and we will compile the stocks with the most suggestions! Thanks to those who have already sent in picks we really appreciate it! We will begin tallying the returns next week.
Good Investing!
Jon L. Johnson and The Daily Staff
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners of Online Investment Services, LP or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
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yahoo stock
top stock pick
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