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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS:
Tuesday night play results:
PDQ: Still very nice with a tight doji over the 18 day MVA on low volume.
SWK: Tried the move but could not hold it. Still solid and just looking for the breakaway move.
WMAR: Gapped higher but was all over the map. Will settle down and start higher, and that is when we move in.
TEK: Struggling at the 18 day MVA still.
New Plays:
Upside:
Play Date: 03/24/2004
MDRX (Allscripts Healthcare Sol.--$9.56; +0.35; no options): Clinical software and IT solutions for physicians
http://biz.yahoo.com/p/m/mdrx.html
STATUS: Flying plateau. MDRX is moving laterally in a tight range between 9 and 10, holding the 18 day MVA (9.12) as it works laterally. This move follows a nice breakout and run from January to the start of this month. Solid 2 to 0 accumulation in the 3 week lateral move (2 up price weeks on rising volume versus 0 down price weeks on rising volume). Money flow is solid and relative strength is ready for a breakout, an indication of the stock's strength in the market. Volume surged Wednesday as the stock tested the top of the range at 10 and fell back. Volume has been running higher as it crouches for the breakout. Looks ready.
Volume: 1.153M Avg Volume: 365.818K
BUY POINT: $10.12 Volume=600K Target=$12.15 Stop=$9.41
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/mdrx.html
Play Date: 03/24/2004
NSM (National Semiconductor--$40.36; +1.29; optionable): Semiconductors (analog)
http://biz.yahoo.com/p/n/nsm.html
STATUS: Cup. NSM is working through a 15 week base that has formed more or less over the 50 day MVA (39.49), a sign that big money has been stepping in at that level and supporting it even as the market sold. It is showing solid 8 to 4 accumulation in the pattern and volume has started to swell the past two weeks as it firms for the move up the right side of the pattern. One of the better big chip patterns, and on a NASDAQ rally we expect it will rally as well.
Volume: 5.602M Avg Volume: 3.629M
BUY POINT: $41.06 Volume=6M Target=$47.25 Stop=$39.78
POSITION: NSM HH - Aug. $40c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/nsm.html
Play Date: 03/24/2004
NVDA (Nvidia--$23.08; +0.99; optionable): Semiconductors (sound, etc.)
http://biz.yahoo.com/p/n/nvda.html
STATUS: Double bottom. NVDA is working on a 10 week pattern that is trying to form up into a double bottom. It tested to 22 in late January, bounced to 24, then sold to the 200 day MVA (20.87) on the second leg, undercutting the first. It has moved up off that level, showing a good spike Wednesday as volume moved solidly above average. Excellent 4 to 0 accumulation at this stage of the base is very good. So good we are willing to start at least a partial position on another solid volume move through the buy point.
Volume: 6.561M Avg Volume: 4.534M
BUY POINT: $23.38 Volume=6M Target=$28 Stop=$22.05
POSITION: UVA FX - June $22.50c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/nvda.html
Play Date: 03/24/2004
RHAT (Red Hat--$20.01; +0.60; optionable): Operating system software
http://biz.yahoo.com/p/r/rhat.html
STATUS: Cup. Reported much better than expected results and gapped higher Wednesday. It is a stock we were thinking about last night, but figured it would do this gap and tank action. It managed to hold onto some of the gain as volume shot off the scale. It also has some decent accumulation in the 10 week base that formed over the 50 day MVA (18.09). Money flow was already strong and is now shooting higher. On the intraday low it filled the gap; thus it may be ready to make the move that sticks now that the hype has had its shot. May make another test back, but we will just wait and let it make the next move back through the buy point.
Volume: 42.345M Avg Volume: 4.835M
BUY POINT: $20.32 Volume=7.3M Target=$24.45 Stop=$18.1
POSITION: RCV FD - June $20c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/rhat.html
Good movers Wednesday: TTP; VRNT
Good Investing!
Jon L. Johnson and your IH Alerts Team
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 in 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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stock recommendation
stock option
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