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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Monday night play results:
ABAX: Surged on volume but was unable to hold the move as the market came back.
APSG: Volume dropped as it came back to test the break higher Monday.
CATS: Surged on strong volume but it gave it back with the market.
OO: Dropped on stronger volume, breaking down from the nice handle.
New Plays:
Upside:
Play Date: 04/13/2004
FLE (Fleetwood Enterp.--$14.79; +0.73; optionable): Motor homes
http://biz.yahoo.com/p/f/fle.html
STATUS: Cup w/handle. Nice pattern that formed over the 50 day MVA (13.09), a good level to hold support as that is where big money steps in to buy more shares. Tuesday FLE broke higher on strong, above average volume, making the move out of the handle of the 8 week base. Solid 2 to 0 accumulation in the pattern (2 up price weeks on rising volume to 0 down price weeks on rising volume) indicating good money moving into the stock during this base where it corrected back. Money flow is excellent, leading the price higher. Relative strength is breaking out with the pattern, a very solid indication that the move has staying power.
Volume: 1.577M Avg Volume: 927.909K
BUY POINT: $14.88 Volume=1.2M Target=$17.88 Stop=$13.88
POSITION: FLE HC - Aug. $15c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/fle.html
Play Date: 04/13/2004
IMGN (Immunogen--$7.67; -0.04; optionable): Drugs
http://biz.yahoo.com/p/i/imgn.html
STATUS: Breakout test. IMGN exploded higher to start the month, rallying to 8.24 on solid volume. It is making the test of the move, tapping the 10 day MVA (7.44) on the intraday low and rebounding. Volume was lower, just below average. The breakout was from a 10 week double bottom pattern showing strong 3 to 1 accumulation. Excellent money flow and a relative strength breakout show the breakout has legs. May come back a bit more toward the 10 day MVA before starting back up. Good action in a selling market.
Volume: 182.09K Avg Volume: 178.727K
BUY POINT: $7.95 Volume=235K Target=$9.58 Stop=$7.39
POSITION: GMU GU - July $7.50c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/imgn.html
Play Date: 04/13/2004
RMD (Resmed--$46.60; -0.30; optionable): Medical appliances
http://biz.yahoo.com/p/r/rmd.html
STATUS: Base on base. RMD is working on a 10 week cup with handle of sorts that has formed on the heels of the breakout from a 16 week base. It surged to 48 on the breakout and has pulled back to hold the 50 day MVA (45.30) to form the current base. It has rallied up off the 50 day and is now forming the handle, the lateral and slightly lower move to shake out the last sellers. Strong money flow is working higher ahead of the price and accumulation in the current base is a solid 3 to 0. Overall the accumulation is 7 to 4; very good money moving into the stock. Looking for it to continue the handle and provide a strong volume breakout. A good place for money to move into as the market turns a bit defensive in the selling.
Volume: 216.5K Avg Volume: 220.136K
BUY POINT: $47.25 Volume=382K Target=$54.35 Stop=$45.74
POSITION: RMD GI - July $45c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/rmd.html
Downside:
Play Date: 04/13/2004
GMT (GATX Corp.--$21.77; -0.69; optionable): Rental and leasing services
http://biz.yahoo.com/p/g/gmt.html
STATUS: Put. Big tank to end January, and then GMT has tried to recover in the intervening 9 weeks. It broke the 200 day MVA (22.82), however, a level where institutions tend to abandon a stock. It tried to recover that level, but after a 2 week fight it has started to fall on rising, above average volume. Looks ready to test the March low (20.33) at least.
Volume: 567.4K Avg Volume: 517.545K
BUY POINT: $21.59 Volume=525K Target=$20.05 Stop=$22.18
POSITION: GMT RX - June $22.50p (-57 delta)
http://www.investmenthouse.com/ci/gmt.html
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 market recommendation
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