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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS
Good movers Friday: MAMA; PHMD; PLXT; RHD; RHI
Best Plays:
1) CDIS: Solid pattern in a top rated stock.
2) DOX: Excellent breakout from a beautiful pattern.
3) PRST: Volume is surging as it readies for the breakout.
4) BBOX: A good pattern is getting better.
5) MIPS: Volume is surging as the stock holds a tight range. It is getting ready to explode higher.
6) RHD: Yellow page maker is making tracks.
NEW PLAYS:
Upside:
Play Date: 04/24/2004
CDIS (Cal Dive--$26.85; -0.51; optionable): Oil and gas equipment
http://biz.yahoo.com/p/c/cdis.html
STATUS: Cup w/handle. Working on a lower volume handle to its 7 week base that has formed over the 50 day EMA (25.65). Accumulation is solid at 3 to 0 (3 up price weeks on rising volume to 0 down weeks on rising volume), showing us that money moved into the stock even as it based. Money flow is excellent, rallying higher ahead of the stock price. An 'A' rated stock for earnings, sales, and technical position. Excellent volume Thursday as it moved up toward the breakout, but volume faded Friday. Looking for tha thigh volume breakout.
Volume: 159.334K Avg Volume: 328.181K
BUY POINT: $28.05 Volume=475K Target=$33.66 Stop=$26.35
POSITION: KPQ IE - Sept. $25c (71 delta) &/or Stock
http://www.investmenthouse.com/ct/cdis.html
Play Date: 04/24/2004
DOX (Amdocs--$30; +0.57; optionable): Customer management software
http://biz.yahoo.com/p/d/dox.html
STATUS: Reverse head and shoulders. DOX is making the breakout move from its 12 week base that formed over the 50 day EMA (27.86), an indication that the stock is receiving solid support at this key level. Accumulation in the base is excellent at 4 to 0. Volume surged Thursday and was strong again Friday as DOX gapped higher on solid earnings results. It may come back to test 29, but it did that intraday, and we are willing to take positions on a further move on continued solid volume.
Volume: 2.011M Avg Volume: 1.329M
BUY POINT: $30.12 Volume=2M Target=$36.15 Stop=$28.55
POSITION: DOX GF - July $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/dox.html
Play Date: 04/24/2004
HEB (Hemispherx Biopharma--$4.14; +0.14; no options): Biotechnology
http://biz.yahoo.com/p/h/heb.html
STATUS: Cup w/handle. Volume has swelled the past week as HEB prepares for the breakout from its 12 week base sporting outstanding 5 to 0 accumulation. Another stock that formed its base over the 50 day EMA (3.59), a key support level. Relative strength is ready to make the breakout along with the stock, a sign of superior strength. Looking for that high volume move through the buy point.
Volume: 439.4K Avg Volume: 212.318K
BUY POINT: $4.29 Volume=318K Target=$5.15 Stop=$3.98
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/heb.html
Play Date: 04/24/2004
PRST (Presstek--$11.55; +0.37; optionable): Digital laser imaging for printing & graphics arts
http://biz.yahoo.com/p/p/prst.html
STATUS: 50 day EMA test. PRST is moving in something of an ascending triangle that is using the 50 day EMA (10.62) as support as it makes higher lows below a relatively constant top at 12. Accumulation in the 8 week base is an excellent 5 to 0. Money flow is surging higher ahead of price and relative strength is ready for the breakout, a good confirmation of the move. Volume was surging on Friday as PRST continued its bounce off the 50 day as volume swelled. Looks ready.
Volume: 388.315K Avg Volume: 233.136K
BUY POINT: $11.94 Volume=350K Target=$14.35 Stop=$11.09
POSITION: PQK GB - July $10c (87 delta) &/or Stock
http://www.investmenthouse.com/ct/prst.html
CONTINUING PLAYS:
Play Date: 03/17/2004
ACXM (Acxicom--$24.17; +0.07; optionable): Information technology software
http://biz.yahoo.com/p/a/acxm.html
STATUS: Breakout test. Still working laterally over the 10 day EMA (23.74) after the strong volume surge to start the month. Volume continues to contract on the lateral move, an indication of very few sellers as it consolidates that early move. Money flow remains strong as does relative strength. Being patient and waiting for the next break higher on a strong volume surge.
Volume: 242.636K Avg Volume: 645.363K
BUY POINT: New: $24.35 (orig. $21.29) Volume=800K Target=New positions: $28.55 (orig. positions $25.55) Stop=$23.22
POSITION: UQA HX - Aug. $22.50c (70 delta) &/or Stock
http://www.investmenthouse.com/ct/acxm.html
Play Date: 04/07/2004
BBOX (Black Box--$55.65; -0.48; optionable): PC networking and communication.
http://biz.yahoo.com/p/b/bbox.html
STATUS: Cup w/handle. BBOX continues to work laterally and slightly lower along the 18 day EMA (55.33), forming the handle to its 14 week base. The handle is where the last weak holders get frustrated with the stall at the former high and sell, fearing the stock is going to roll over once more. The low volume in the handle, however, tells us that there are few sellers. The base formed over the 50 day EMA (53.57), another sign of solid support for the stock. Accumulation is a strong 4 to 1, and with volume moving back above average Friday, we are looking for a breakout move soon.
Volume: 195.101K Avg Volume: 227.545K
BUY POINT: $56.98 Volume=354K Target=$65 Stop=$54.72
POSITION: QBX IK - Sept. $55c (61 delta) &/or Stock
http://www.investmenthouse.com/ct/bbox.html
Play Date: 04/22/2004
IVGN (Invitrogen--$74.74; -0.26; optionable): Biotechnology
http://biz.yahoo.com/p/i/ivgn.html
STATUS: Double bottom. Friday IVGN stalled and moved laterally on below average volume, perhaps starting to form the handle to an 11 week base sporting solid 4 to 2 accumulation. Volume surged Wednesday and Thursday as IVGN moved up to the 'hump' in the pattern at 75. It may slide further laterally and fully form a handle over the next few sessions, but we want to be ready for the breakout as the volume has surged.
Volume: 580.282K Avg Volume: 924.681K
BUY POINT: $75.78 Volume=1.2M Target=$87 Stop=$74.22
POSITION: IUV HO - Aug. $75c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/ivgn.html
Play Date: 04/23/2004
MAMA (Mama.Com--$14.36; +1.73; no options): Online direct marketing
http://biz.yahoo.com/p/m/mama.html
STATUS: Test 18 day EMA. We saw volume moving up Friday as MAMA came off a test of its early March peak that started the big run. We issued the alert. This is the second big test of that breakout, holding roughly at the 18 day EMA (13.10) and then ramping higher. Volume was not huge, but the stock has made us money before and it definitely has momentum.
Volume: 4.917M Avg Volume: 4.101M
BUY POINT: New: $14.48 (orig. $14.28) Volume=6.3M Target=$17.35 Stop=$13.28
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/mama.html
Play Date: 04/21/2004
MIPS (Mips Technologies--$6.58; -0.02; no options): Semiconductor memory chips
http://biz.yahoo.com/p/m/mips.html
STATUS: Cup. Another very strong volume session Friday, but MIPS could not gain traction. It is still forming the 13 week cup base, and this volume shows a lot of interest in the stock. The base used the 200 day SMA (5.10) as support at the low, a good point to hold up. Excellent 4 to1 accumulation in the pattern with money flow still galloping higher ahead of price. With all of this money flow and volume, we expect the stock to make a big upside breakout this week.
Volume: 788.656K Avg Volume: 260.318K
BUY POINT: $6.72 Volume=339K Target=$8.12 Stop=$6.18
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/mips.html
Play Date: 04/05/2004
RHAT (Red Hat--$24.52; -0.06; optionable): Internet software
http://biz.yahoo.com/p/r/rhat.html
STATUS: Breakout test. RHAT is still moving laterally over the 18 day EMA (23.58) on very low, below average volume as it consolidated the strong late March breakout from a 10 week cup base. Accumulation remains positive at 3 to 2 while money flow surges ahead of price. The pattern and action is good but we have to be patient and let the stock show us the move on strong trade. Then we move in.
Volume: 1.738M Avg Volume: 5.285M
BUY POINT: $24.88 Volume=8.8M Target=$29.25 Stop=$23.45
POSITION: RCV FE - June $25c (55 delta) &/or Stock
http://www.investmenthouse.com/ct/rhat.html
Play Date: 04/22/2004
RHD (RH Donnelley--$48.34; +0.91; optionable): Yellow pages
http://biz.yahoo.com/p/r/rhd.html
STATUS: Breakout test. Friday RHD continued the rebound from the breakout test at the 18 day EMA (46.81) on volume that was lower but still solidly above average. RHD surged out of a 5 month ascending triangle to finish out March, running to 48.57 before the current low volume pullback. This rebound is form the first test of the breakout, one o four favorite entry points. Still a buy on this move but not for long. Money flow is surging ahead of price and relative strength is breaking out, a good confirmation of the move.
Volume: 181.6K Avg Volume: 142.818K
BUY POINT: New: $48.68 (orig. $47.84) Volume=200K Target=$55 Stop=$46.52
POSITION: RHD HI - Aug. $45c (72 delta) &/or Stock
http://www.investmenthouse.com/ct/rhd.html
Play Date: 04/20/2004
TSO (Tesoro Petroleum--$20.90; -0.24; optionable): Oil and gas
http://biz.yahoo.com/p/t/tso.html
STATUS: Breakout test. Friday TSO could not get the same volume that it saw Thursday, that tremendous surge that bounced TSO off of the 18 day EMA (20.07). It stalled but held most of the Thursday gain. It has tested the big gap higher two weeks back and is ready to continue the breakout move. Just want to see that volume kick back up again.
Volume: 468K Avg Volume: 813.409K
BUY POINT: $21.35 Volume=1.1M Target=$25.62 Stop=$20.18
POSITION: TSO HD - Aug. $20c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/tso.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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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