stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good moves Monday: AVN; TRA; ATRX

Weekend play results:
AVN: Super surge on strong volume.
ECIL: Good volume but could not quite make the breakout. Looks strong.
SCSC: Backed off from the breakout but still solid.
ATRX: Diving lower as expected.
JBLU: Started down hard but managed to recoup most of the loss.

Upside:

Play Date: 08/30/2004
CWTR (Coldwater Creek--$19.83; -0.62; no options): Catalog & mail order
http://biz.yahoo.com/p/c/cwtr.html
After Hours: $19.87
STATUS: Breakout test. CWTR show out of a 9 week double bottom with handle base Thursday on strong trade. It has come back to test this move, tapping Monday at the 10 day EMA (19.33) on the Monday low and rebounding to recoup some of the losses. The pattern enjoys strong money flow and a relative strength breakout as well. Accumulation in the base is positive at 3 to 2, showing buyers moving into the stock during the base. Looking for this test to hold near the 10 or 18 day EMA (18.79) and then a resumption of the breakout.
Volume: 537.22K Avg Volume: 318.09K
BUY POINT: $20.15 Volume=400K Target=$24 Stop=$19.21
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/cwtr.html

Play Date: 08/30/2004
LSTR (Landstar System--$51.80; -0.15; optionable): Trucking
http://biz.yahoo.com/p/l/lstr.html
After Hours: $51.80
STATUS: Double bottom w/handle. Volume has tapered the past two weeks as LSTR works on the handle to its 8 week base where it is setting up for a new breakout to a new all-time high. Outstanding 4 to 1 accumulation in the base shows strong buying as the stock digests its strong March to July run, weeds out the short term holders, and sets up for the next run. Money flow is strong as well, moving up ahead of the stock price. Relative strength is ready to breakout as well. Looks super.
Volume: 158.708K Avg Volume: 222.545K
BUY POINT: $52.45 Volume=334K Target=$58 Stop=$50.98
POSITION: QRY AJ - Jan. $50c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/lstr.html

Downside:

Play Date: 08/30/2004
ANN (Ann Taylor--$24.47; -0.58; optionable): Apparel stores
http://biz.yahoo.com/p/a/ann.html
STATUS: Put. ANN has come under serious duress the past two months. After forming a nice 4 month cup pattern through June, it was unable to hold on and form a handle, instead sliding below the 200 day SMA (27.12). A test failed and the stock tanked. It has rallied back to test the breakdown, but could only get close to the 50 day EMA (25.80) before rolling back over Monday on much stronger volume. It is under distribution and money flow is heading down. Ready to move into downside positions on continued strong volume.
Volume: 1.154M Avg Volume: 1.134M
BUY POINT: $24.35 Volume=1.2M Target=$22.78 Stop=$24.92
POSITION: ANN VE - Oct. $25p (-59 delta)
http://www.investmenthouse.com/ci/ann.html

Play Date: 08/30/2004
DV (Devry--$19.67; -0.34; optionable): Education and training
http://biz.yahoo.com/p/d/dv.html
STATUS: Put. DV double topped in the spring, tried to hang on into early summer, but then failed as it fell below the 200 day SMA (27.01). DV is one of the weaker of its group, frequently disappointing with earnings. It has been bouncing down the 18 day EMA (20.40) in July and August, now coming back to make yet another test of that level, moving up on mostly lower volume. It showed a doji Friday below the 18 day and started lower Monday. Volume was not there Monday, but we are looking for it to move higher as it continues down with the trend. Don't need huge volume as the trend is pretty well established.
Volume: 293.6K Avg Volume: 564.181K
BUY POINT: $19.55 Volume=400K Target=$18 Stop=$19.95
POSITION: DV VD - Oct. $20p (-54 delta)
http://www.investmenthouse.com/ci/dv.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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