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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers Monday: CAND; SNDA; MVSN
Best Plays:
1) DRS: Making a higher low at the 10 day EMA.
2) TZOO: Nice test of the 50 day EMA and can race with the wind.
3) EYET: Nice 50 day EMA test and now looks ready.
4) GIVN: Refusing to give up its breakout.
5) PPDI: Volume is starting higher as it moves off the 18 day EMA.
6) VNT: Volume is starting to rise as it moves off the 10 day.
NEW PLAYS:
Upside:
Play Date: 10/11/2004
ARBA (Ariba--$10.63; +0.21; optionable): Internet software and services
http://biz.yahoo.com/p/a/arba.html
After Hours: $10.61
STATUS: Cup. ARBA is just starting to move up off of the lows in its 10 month base. It has started a series of tests, rallying off the 50 day EMA (9.27) last week and coming back to test that move, easing back to the 10 day EMA (10.27) to test that move. It is in the process of building its base, but it is in a good risk/reward position and has plenty of room to run toward the 200 day SMA (13.51) for a nice gain.
Earnings: Oct. 27
Volume: 354.692K Avg Volume: 626.59K
BUY POINT: $10.78 Volume=835K Target=$13.45 Stop=$10.32
POSITION: IRV AB - Jan. $10c (67 delta) &/or Stock
http://www.investmenthouse.com/ct/arba.html
Play Date: 10/11/2004
DRS (DRS Technologies--$38.39; -0.02; optionable): Aerospace/ defense
http://biz.yahoo.com/p/d/drs.html
STATUS: Ascending base. A nice fade back to the 10 day EMA (38.26) as DRS sets up to make a higher low in its 13 week base. DRS gapped higher to start July when it rejected a takeover attempt by LLL. It has shown strong accumulation (5 to 1) as it worked laterally in the base. The higher low and very narrow range the past two sessions along with the nice above average volume surge Monday is telling us to get ready for a breakout move.
Earnings: Nov. 5
Volume: 399.6K Avg Volume: 260.045K
BUY POINT: $39.34 Volume=400K Target=$45 Stop=$38.18
POSITION: DRS CH - Mar. $40c (46 delta) &/or Stock
http://www.investmenthouse.com/ct/drs.html
Play Date: 10/11/2004
EENC (Enterra Energy--$15.55; +0.34; optionable): Oil and gas
http://biz.yahoo.com/p/e/eenc.html
STATUS: Cup w/handle. Volume is strong as EENC starts the breakout from its 25 week base. Excellent 11 to 2 accumulation in the pattern shows a lot of buyers during the base and has set up the breakout move. Relative strength broke out on the move as well, a very good corroboration of the breakout. Looking to move in on a further volume move and then take some more positions on a breakout test.
Volume: 277.385K Avg Volume: 141.545K
BUY POINT: $15.86 Volume=212K Target=$18.95 Stop=$14.98
POSITION: EMU CC - Mar. $15c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/eenc.html
Play Date: 10/11/2004
TZOO (Travelzoo--$56.88; +5.89; no options): Internet travel databases
http://biz.yahoo.com/p/t/tzoo.html
After Hours: $56.50
STATUS: Test 50 day EMA. Volume surged back above average Monday as TZOO surged higher after the Friday 50 day test (50.10). It has been one of the hottest stocks in the market and one that has made us money before. Want to see it move over the 18 day EMA (57.83) on continued strong volume to move into this stock that can run like the wind. Earnings are out before the open; if they are good we can expect the stock to shoot higher. We will look for the first test that holds to start positions, then see where it is in the afternoon.
Earnings: 10-12 before the open.
Volume: 2.944M Avg Volume: 1.943M
BUY POINT: $57.95 Volume=2.9M Target=$76 Stop=$56.48
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/tzoo.html
CONTINUING PLAYS: Many are really setting up nicely.
Upside:
Play Date: 10/07/2004
BABY (Natus Medical--$7.06; +0.06; no options): Medical appliances
http://biz.yahoo.com/p/b/baby.html
STATUS: Breakout test. The intraday range continues to tighten as BABY moves laterally at 7 as the 10 day EMA (6.89) rises to meet it. BABY came to life in May, rallying to 6.75 where it started the current 12 week cup with handle base. It broke out of this base in late September and has moved laterally, holding its gains as it sets up for the next leg of the breakout run. Excellent 5 to 0 accumulation in the base shows all buyers, and money flow is strong. Still looking for that bold higher on stronger volume.
Earnings: Early November.
Volume: 108.09K Avg Volume: 117.409K
BUY POINT: $7.22 Volume=450K Target=$8.85 Stop=$6.79
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/baby.html
Play Date: 10/04/2004
EYET (Eyetech Pharmaceuticals--$35.45; +0.3; optionable): Biotechnology
http://biz.yahoo.com/p/e/eyet.html
After Hours: $34.45
STATUS: 50 day EMA test. After surging through the 50 day EMA (35.08) to start the month with some high volume moves, EYET has come back to test on much lower volume, showing some tight dojis at the 50 day. It is trying to set up a double bottom base that started in June, but this 50 day MA test is a very good risk/reward entry point. Money flow is surging higher ahead of the stock, and we are looking for the volume to jump back up as it moves through the buy point.
Earnings: Oct. 22 after the close
Volume: 248.659K Avg Volume: 777.909K
BUY POINT: Aggressive: $35.92; Breakout: $36.82 Volume=1.1M Target=$43 Stop=$35.95
POSITION: QUJ LG - Dec. $35c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/eyet.html
Play Date: 10/04/2004
GIVN (Given Imaging--$42.20; +0.42; optionable): Medical appliances
http://biz.yahoo.com/p/g/givn.html
STATUS: Flying plateau. We were looking for GIVN to make a test back toward 40, but it is showing its strength, refusing to give up its gains after bolting higher to start the month. Nice 24 week cup with handle base breakout has held and money flow is moving higher ahead of price and relative strength broke out on the breakout and is starting the breakout again. Looks as if the stock is going to continue the breakout move from here.
Earnings: October 27 after the close
Volume: 224.913K Avg Volume: 269.59K
BUY POINT: $42.72 Volume=366K Target=$48.62 Stop=$40.88
POSITION: QPG BH - Feb. $40c (61 delta) &/or Stock
http://www.investmenthouse.com/ct/givn.html
Play Date: 10/02/2004
KOOL (Thermogenesis--$5.07; +0.14; no options): Scientific and technical instruments
http://biz.yahoo.com/p/k/kool.html
STATUS: Cup. Nice hold of the 10 day EMA (4.92) and bounce higher as KOOL continues to form the handle to its 9 month base. Money flow continues higher ahead of price and relative strength is making the breakout ahead of the stock a very bullish move.
Volume: 111.592K Avg Volume: 111.818K
BUY POINT: $5.11 Volume=200K Target=$6.49 Stop=$4.89
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/kool.html
Play Date: 10/04/2004
PPDI (Pharmaceutical Product Dev.--$36.59; +0.54; optionable): Medical labs
http://biz.yahoo.com/p/p/ppdi.html
STATUS: Breakout test. PPDI continues to work laterally, holding the 18 day EMA (36.05) as it works laterally the past two weeks. This is a lateral consolidation of the breakout from its 9 week base that formed over the 50 day EMA (35.01). Nice test below the 18 day EMA Monday and then a rebound to post a gain on rising, average volume. Looks ready to continue the breakout move.
Earnings: Oct. 13 after the close.
Volume: 370.202K Avg Volume: 467.272K
BUY POINT: $36.55 Volume=683K Target=$42 Stop=$35.66
POSITION: PJQ AG - Jan. $35c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/ppdi.html
Play Date: 10/06/2004
SGMS (Scientific Games--$19.57; +0.04; optionable): PC hardware
http://biz.yahoo.com/p/s/sgms.html
After Hours: $19.59
STATUS: Double bottom w/handle. SGMS continues a low volume lateral move the past three sessions, unable to break over 20. Strong breakout move last Wednesday but it stalled out at 20. A very nice, low volume test of the breakout from the 6 month base, a classic pattern with the August low, the second low in the base, undercutting the May low. Getting ready to continue the breakout move.
Earnings: Nov. 1 after the close
Volume: 296.914K Avg Volume: 572.954K
BUY POINT: $20.12 Volume=650K Target=$24 Stop=$19.05
POSITION: TUJ AD - Jan. $20c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/sgms.html
Play Date: 10/09/2004
VNT (Compania Anomina Nac Telecom--$23.46; +0.31; optionable): Venezuelan telecom
http://biz.yahoo.com/p/v/vnt.html
STATUS: Breakout test. Volume started higher Monday as VNT started the rebound from the test of the breakout from its 24 week ascending triangle. VNT broke out in late August, surging just over 24 on the breakout move. Volume was solid on the break higher, and now VNT has eased back toward the 10 day EMA (22.88) to test the move. It is showing leadership attributes, i.e. just a pullback to test the breakout as the rest of the market sold harder. That first breakout test is one of our favorite entry points because when the stock holds and starts back up it shows the buyers are moving back in for more, still wanting the stock at this higher price. Solid 6 to 4 accumulation in the pattern shows net buyers and set up the breakout move. A bit more volume and we will start some positions.
Earnings: Oct. 27 after the close.
Volume: 166.6K Avg Volume: 197.681K
BUY POINT: New: $23.55 (orig. $23.41) Volume=298K Target=$27 Stop=$22.58
POSITION: VNT AX - Jan. $22.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/vnt.html
Play Date: 10/09/2004
WSTM (Workstream--$3.30; 0.00; no options): Staffing and outsourcing services
http://biz.yahoo.com/p/w/wstm.html
STATUS: Breakout test. Gapped lower to the 18 day EMA (3.14), held, and rallied back to close flat on lower, average volume. WSTM broke out from a 22 week cup with handle base to start the month, the base sporting excellent 6 to 2 accumulation. It fell back last week on lower volume, testing the move with a tap down below the 18 day EMA intraday Friday before rebounding. Looking for volume to continue higher as it moves through the buy point. Excellent money flow is leading the way higher.
Volume: 205.489K Avg Volume: 169.227K
BUY POINT: $3.47 Volume=251K Target=$4.19 Stop=$3.34
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/wstm.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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us stock market
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