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trade stock, stock recommendation
Begin part 3 of 3
Took awhile sorting through the rubble left after the Tuesday reversal.
THE PLAYS
Good movers Tuesday: CAND; NXTP; SAPE
Monday night play results:
JLG: Gapped higher but could not hold the move, reversing on stronger volume.
PKD: Took a breather though volume remained strong.
PLT: Tried the move on volume but faded with the market late.
VTIV: Gapped and tanked.
New Plays:
Upside:
Play Date: 10/19/2004
LIFC (Lifecell--$10.21; +0.02; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
After Hours: $10.16
STATUS: Cup w/handle. LIFC moves laterally the past two weeks, forming the handle to its 15 week base formed using the 200 day SMA (8.77) as support on the pattern low. Solid 4 to 2 accumulation in the pattern shows net buyers, setting up the breakout and run. Money flow is strong, leading higher even as the stock moves laterally. Looking for a high volume breakout to move into positions.
Volume: 210.045K Avg Volume: 244.272K
BUY POINT: $10.74 Volume=366K Target=$13 Stop=$9.99
POSITION: QKL CB - Mar. $10c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/lifc.html
Play Date: 10/19/2004
VION (Vion Pharma--$4.65; -0.08; no options): Biotechnology
http://biz.yahoo.com/p/v/vion.html
STATUS: Cup w/handle. Kind of a double bottom as well, but either way, a nice base. After a strong volume move Friday, VION has weathered the rather weak trade this week by pulling back a hair on slightly lower volume. A solid 23 week base sporting outstanding 8 to 2 accumulation (8 up price weeks on rising volume to 2 down price weeks on rising volume) has set the stage for a breakout. Formed using the 200 day SMA (3.68) on the lows as support, a good sign of big money support. Looking for volume to surge as it climbs through the buy point.
Volume: 631.092K Avg Volume: 473.409K
BUY POINT: $4.85 Volume=700K Target=$6 Stop=$4.51
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/vion.html
Play Date: 10/19/2004
WMB (Williams Companies--$12.60; +0.07; optionable): oil and gas pipelines
http://biz.yahoo.com/p/w/wmb.html
STATUS: Breakout test. WMB shot higher last week on strong trade, surging to 13 on the high. Nice move out of a well formed 10 week cup base formed at the 50 day EMA (12.22). The base sports excellent 6 to 1 accumulation, showing almost all buyers during the consolidation. Solid money flow and relative strength ready for the breakout. Nice pattern, nice breakout, nice test. It did not tank in the pullback of the oils, instead setting up for the next move.
Volume: 2.212M Avg Volume: 2.4M
BUY POINT: $12.88 Volume=2.5M Target=$15.45 Stop=$12.34
POSITION: WMB AV - Jan. $12.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/wmb.html
Continuing plays that look ready:
CHT
DHR
MSCC
ROP
TV
FFIV
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.
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trade stock
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