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stock option, stock market course
Begin part 2 of 3
THE PLAYS
Plays from the Tuesday report:
NSM: Rallied to test the 10 day MVA but faded. Volume was better but still struggling.
AVGN: Gapped higher but then faded on rising volume.
GEMS: Not the move we wanted, fading to the 10 day MVA.
NANX: Gapped higher, but sold back to the 10 day MVA.
New Plays:
Downside:
Play Date: 01/28/2004
AFCO (Applied Films--$33.78; -1.26; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/afco.html
STATUS: Put. Breaking the 50 day MVA (34.06), AFCO was on a nice run mid-month but then gapped massively lower on huge volume. It held the 50 day, bounced on lower volume, and Wednesday started down on rising volume. Money flow is tanking and the stock is under distribution (high volume selling. Looking to move in as it continues to move lower.
Volume: 301.237K Avg Volume: 203.363K
BUY POINT: $33.44 Volume=305K Target=$30.38 Stop=$35.25
POSITION: UOF OG - Mar. $35p (-55 delta)
http://www.investmenthouse.com/ci/afco.html
Play Date: 01/28/2004
CELG (Celgene--$41.47; -1.16; optionable): Biotechnology
http://biz.yahoo.com/p/c/celg.html
STATUS: Put. CELG tanked to start the month, falling close to the 200 day MVA (37.97) on the low. It has made a low volume rebound back up to the 50 day MVA (43.24), but then started to roll over at that resistance. Wednesday it was selling on stronger, above average volume. Money flow is diving. We are looking for CELG to follow it lower.
Volume: 2.355M Avg Volume: 1.64M
BUY POINT: $41.24 Volume=225K Target=$38.24 Stop=$42.45
POSITION: LQH OH - Mar. $40p (-37 delta)
http://www.investmenthouse.com/ci/celg.html
Upside:
Play Date: 01/28/2004
ENTU (Entrust--$5.19; +0.30; no options): Security software
http://biz.yahoo.com/p/e/entu.html
STATUS: Cup w/handle. With all of the worms digging around the internet the security software firms are starting to turn up, and indeed are reporting good earnings. ENTU is making the breakout from a 4 month base showing excellent 5 to 1 accumulation (5 up weeks on rising volume to 1 down price week on rising volume), a sign that money has been moving into the stock over the course of the base. Money flow is outstanding, racing higher ahead of price. Wednesday the price started to follow the money flow higher in anticipation of earnings, rallying on strong volume. Looking for the move to continue so we can step in.
Volume: 1.377M Avg Volume: 225.5K
BUY POINT: $5.32 Volume=400K Target=$6.65 Stop=$4.95
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/entu.html
Play Date: 01/28/2004
SMTS (Somanetics--$9.24; +0.44; no options): Medical appliances
http://biz.yahoo.com/p/s/smts.html
STATUS: Double bottom w/handle. We saw SMTS Tuesday, and Wednesday it started a high volume breakout move from an 11 week base sporting 2 to 1 accumulation and strong money flow. Price/volume action in the base has been solid: drying up at the bottom then swelling as it moved up to form the right side of the base. It tailed off the past week and then exploded higher on the Wednesday move. Looks ready to continue the move, and in a nice sector for the market right now. Earnings reported 1-13.
Volume: 441.424K Avg Volume: 78.227K
BUY POINT: $9.37 Volume=117K Target=$11.32 Stop=$8.71
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/smts.html
End part 2 of 3
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stock option
stock market course
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