|
|
stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers Tuesday: AAPL; GW; PMTC; SFD
Monday play results:
CLE: Started higher but volume was lighter and it just held its ground by the close.
PMTC: Solid volume again and surged but gave back much of the gain.
PPDI: Still solid and ready to make the next move.
SAPE: Taking a low volume breather.
New Plays:
Upside:
Play Date: 10/05/2004
AKAM (Akami Technologies--$15.14; -0.10; optionable): Internet software and services
http://biz.yahoo.com/p/a/akam.html
After Hours: $15.13
STATUS: Cup. AKAM formed a reverse head and shoulders base from mid-July to mid-September at the bottom of its current 14 week base, tried a breakout, b slid back once more. It held near the 200 day SMA (14.16) on that pullback, found its footing last Friday and jumped higher Monday. It took a breather Tuesday at the September high, easing slightly lower on very low volume. It may form a lateral move here and make a handle to its base. We want to be ready if it continues to run higher, handle or no. Solid 5 to 2 accumulation in the base is setting up the move higher, and money flow is well above price, showing the way.
Volume: 1.491M Avg Volume: 2.475M
BUY POINT: $15.65 Volume=3.7M Target=$18.55 Stop=$14.88
POSITION: UMU AC - Jan. $15c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/akam.html
Play Date: 10/05/2004
COST (Costco--$43.06; -0.24; optionable): Warehouse-type stores
http://biz.yahoo.com/p/c/cost.html
After Hours: $43.06
STATUS: Breakout test. Volume jumped Monday as COST started the breakout move from its 14 week flat base formed along the 50 day EMA (41.23) and sporting strong 4 to 1 accumulation. Both of those are a sign of institutional support at a key level and solid buying. Tuesday it took a breather on lower, below average volume, and it may pull back a bit more before it is ready to continue. Money flow is super and it is just a matter of time before COST starts back up to continue the breakout move.
Volume: 2.936M Avg Volume: 3.298M
BUY POINT: $43.45 Volume=3.4M Target=$49.48 Stop=$42.38
POSITION: PRQ DV - Apr. $42.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/cost.html
Play Date: 10/05/2004
NXTP (Nextel Partners--$16.56; -0.07; optionable): Telecom wireless communications
http://biz.yahoo.com/p/n/nxtp.html
STATUS: Breakout test. Last week NXTP exploded off the 200 day SMA (14.29) last week on some tremendous volume, building the right side of the 14 week base. It is now easing laterally and slightly lower toward the 10 day EMA (15.95) and looks to be forming a handle. Solid 6 to 4 accumulation in the base shows net buyers, and money flow is surging ahead of price. May take a couple of sessions to form the handle and then provide the breakout move.
Volume: 2.711M Avg Volume: 1.698M
BUY POINT: $16.88 Volume=2M Target=$20.25 Stop=$15.88
POSITION: KTU BW - Feb. $17.50c (43 delta) &/or Stock
http://www.investmenthouse.com/ci/nxtp.html
Play Date: 10/05/2004
RECN (RSCS Connection--$41.99; +2.32; optionable): Business management services
http://biz.yahoo.com/p/r/recn.html
After Hours: $41.99
STATUS: Double bottom w/handle. Volume has surged the past week as RECN tested the 50 day EMA (37.55) in its handle and then jumped off of that level, surging Tuesday on strong volume. It used the 200 day SMA (37.40), an important institutional support level where the stock found buyers. Excellent 4 to 1 accumulation in the base shows a lot of buyers and has set the foundation for a run higher. Looking to take some positions on a further move higher from here and then again on the next test.
Volume: 1.035M Avg Volume: 446.045K
BUY POINT: $42.22 Volume=669K Target=$48 Stop=$40.98
POSITION: JUJ BH - Feb. $40c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/recn.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.
|
stock recommendation
stock investment information
|
