trade stock, stock split

Begin part 2 of 3

Economic Calendar

These are consensus expectations. Our expectations will vary and are discussed in the 'Economy' section.

June 14
Trade Balance, Apr (08:30): -$45.0B expected and -$46.0B prior
Retail Sales, May (08:30): 1.0% expected and -0.5% prior
Retail Sales ex-auto, May (08:30): 0.4% expected and -0.1% prior

June 15
PPI, May (8:30): DELAYED 0.6% expected and 0.7% prior
Core PPI, May (8:30): DELAYED 0.2% expected and 0.2% prior
Business Inventories, Apr (08:30): 0.5% expected and 0.7% prior
CPI, May (08:30): 0.4% expected and 0.2% prior
Core CPI, May (08:30): 0.2% expected and 0.3% prior
New York Empire State Index, June (08:30): 28.5 expected and 30.2 prior
Michigan Sentiment-Prel., June (09:45): 91.0 expected and 90.2 prior

June 16
Housing Starts, May (08:30): 1950K expected and 1969K prior
Building Permits, May (08:30): 1965K expected and 2006K prior
Industrial Production, May (09:15): 0.6% expected and 0.8% prior
Capacity Utilization, May (09:15): 77.3% expected and 76.9% prior
Fed Beige Book (14:00)

June 17
Initial Claims, 06/12 (08:30): 330K expected and 352K prior
Leading Indicators, May (10:00): 0.4% expected and 0.1% prior
Philadelphia Fed, June (12:00): 25.0 expected and 23.8 prior

June 18
Current Account, Q1 (08:30): -$139.6B expected and -$127.5B prior

THE PLAYS

Good movers Thursday: TFRX, ASE

Wednesday night play results:
ISRG: Still working on a very nice handle, preparing for the breakout.
LGF: Still a very, very nice pattern readying for the breakout.
RSG: Another stock that held up well, setting up for its breakout in its own timeframe.

New Plays:

Upside:

Play Date: 06/11/2004
AMMD (American Medical Systems--$29.87; -0.03; no options): Medical appliances
http://biz.yahoo.com/p/a/ammd.html
STATUS: Breakout test. AMMD surged out of a 14 week cup base the last week of May, rallying over 32 on that breakout move. it has spent the past two weeks easing back on mostly lower volume, holding the 18 day EMA (29.22) on the intraday lows as it holds the 10 day EMA (29.81) on the closes. Excellent 6 to 2 accumulation in the base (6 up price weeks on rising volume to 2 down price weeks on rising volume) shows money moving into the stock as it based. The lower volume pullback shows few sellers as it tests the move. Strong stocks will bounce up off the 10 or 18 day on their first test of the breakout, and that is an excellent place to move in when they start to bounce back on rising trade. Strong money flow remains ahead of the stock, a good sign for a continued breakout run.
Volume: 208.6K Avg Volume: 275K
BUY POINT: $30.62 Volume=333K Target=$36 Stop=$29.12
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/ammd.html

Play Date: 06/11/2004
FSH (Fisher Scientific--$57.92; +0.19; optionable): Wholesale electronics
http://biz.yahoo.com/p/f/fsh.html
STATUS: Reverse head and shoulders. FSH is setting up in a nice 9 week base that is part of a larger 16 week pattern that formed mostly over the 50 day EMA (56.19), a good sign of institutional strength. Excellent 7 to 2 accumulation in the base shows those institutions buying into to the stock as it moves laterally. A very tight, lateral move on low volume over the 10 day EMA (57.60) is setting up the breakout from a leadership stock ready for a new high.
Volume: 489K Avg Volume: 1.1M
BUY POINT: $58.64 Volume=1.7M Target=$67 Stop=$56.97
POSITION: FSH IK - Sept. $55c (72 delta) &/or Stock
http://www.investmenthouse.com/ci/fsh.html

Play Date: 06/11/2004
GGG (Graco--$28.95; -0.11; optionable): Diversified machinery manufacturing
http://biz.yahoo.com/p/g/ggg.html
STATUS: Cup w/handle. GGG split in late March, rallied some, and then fell into the current 10 week base. It is working on the handle, easing back on low volume after rallying off the base lows that held the 200 day SMA (26.99). The handle is the point where the last sellers are shaken out as the stock appears to lose strength as it approaches the pre-correction high. If volume stays low that shows most are holding onto the stock. Accumulation is excellent at 4 to 0, setting a great foundation for another breakout. Money flow is leading higher. Looks very good as another leader stock sets up for another move higher.
Volume: 131K Avg Volume: 207.681K
BUY POINT: $29.62 Volume=312K Target=$34 Stop=$28.28
POSITION: GGG KF - Nov. $30c (40 delta) &/or Stock
http://www.investmenthouse.com/ci/ggg.html

Play Date: 06/11/2004
MIMS (MI Developments--$9.21; +0.21; optionable): Specialized health services
http://biz.yahoo.com/p/m/mims.html
STATUS: Breakout test. Blasted out of a 9 month flat base to start the month, surging from 8 to 9.80 on the breakout move. It has spent the past week coming back to test that move, making its first breakout test. It tapped at the 10 day EMA (8.86) Thursday and posted a modest gain on lower but very solid, above average volume. Accumulation in the longer base was a solid 11 to 7 with strong money flow. Looking for it to continue the rebound from its first test on solid trade to give us a solid entry point.
Volume: 319.8K Avg Volume: 192.727K
BUY POINT: $9.72 Volume=300K Target=$11.68 Stop=$9.04
POSITION: OQX JB - Oct. $10c (40 delta) &/or Stock
http://www.investmenthouse.com/ci/mims.html

Play Date: 06/11/2004
ZQK (Quicksilver--$23.06; +0.90; optionable): Apparel
http://biz.yahoo.com/p/z/zqk.html
STATUS: Reverse head and shoulders. ZQK split in May 2003 and then fell into a 9 month flat base, making the breakout in February and running to 23. It needed a rest after that move and this 10 week base sporting 2 to 1 accumulation is setting the foundation for the next move. It tapped the 50 day EMA (21.74) Monday on the low of the right shoulder and bounced on strong volume. Thursday it was rallying again, once more on strong, above average trade, following solid money flow moving up ahead of the price. It looks ready to start the breakout for its next run. Very solid, very good leadership stock.
Volume: 733.4K Avg Volume: 593.454K
BUY POINT: $23.39 Volume=890K Target=$27.39 Stop=$21.98
POSITION: ZQK KX - Nov. $22.50c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/zqk.html

End part 2 of 3

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