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us stock market, stock ticker
Begin part 3 of 3
THE PLAYS
Good movers Tuesday: APCS; EBAY; ELBO; MRGE; PLCE; TEN; TERN
Monday night play results:
EGHT: Gapped higher on solid volume but could not hold the move. Still ready to make the move.
SUNW: Monday move was a false alarm as it faded back down in the handle.
TRA: Very nice doji at the 10 day EMA. Looks as if the test is completed.
GSIC: Moved higher again, but volume was light and it faded from the high. Still looks solid.
New Plays:
Upside:
Play Date: 12/28/2004
MACR (Macromedia--$31.29; +1.63; optionable): Multimedia and graphics software
http://biz.yahoo.com/p/m/macr.html
After Hours: $31.20
STATUS: Breakout test. MACR broke out of a 14 month double bottom with handle base in early December, finally showing the volume we wanted to see. It immediately fell back into a lateral test, however, as the market stumbled at that point. Volume backed off as MACR moved laterally over the 18 day EMA (29.79) the past month, setting up the next move. Excellent 13 to 6 accumulation in the base has set the foundation for a breakout and run. Tuesday volume started back up as MACR bounced off the 18 day and looks to have started the next leg higher. Ready to enter positions on a further move on some further improved volume.
Volume: 827.104K Avg Volume: 1.082M
BUY POINT: $31.44 Volume=1.2M Target=$37.75 Stop=$30.25
POSITION: MRQ EF - May $30c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/macr.html
Play Date: 12/28/2004
MUSA (Metals USA--$19.30; +1.17; optionable): Processed steel, aluminum and specialty metals
http://biz.yahoo.com/p/m/musa.html
After Hours: $19.30
STATUS: Ascending triangle. Volume jumped well above average Tuesday as MUSA headed toward the breakout from its 12 week base that formed using the 50 day EMA (17.79) as support; the 50 day is a key support level where institutions step in to pick up more shares of a stock they like. This move is taking MUSA to an all-time high where there are no shareholders that bought higher ready to dump it.
Volume: 733.483K Avg Volume: 266.681K
BUY POINT: $19.68 Volume=385K Target=$23.65 Stop=$18.89
POSITION: JZU CW - Mar. $17.50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/musa.html
Play Date: 12/28/2004
TV (Grupo Televisa--$60.70; +1.59; optionable): Spanish language broadcast TV
http://biz.yahoo.com/p/t/tv.html
After Hours: $60.80
STATUS: Test 50 day EMA. TV made us some good money this year following its September breakout and run higher up the 18 day EMA (59.36). After a 10 week run that peaked at 62.50, it needed more of a rest and came all the way back to the 50 day EMA (57.66) to catch its breath. It moved in a very tight, lateral range along the 18 day for two weeks, and then shot higher Tuesday on very strong volume. Strong stocks in strong runs will rally up the short term MA (10 and 18 day EMA) and then take a deeper test to the 50 day EMA. If they find strong support there, i.e. the big money steps in, they typically begin a new run up the short term MA roughly equal to the prior move. Tuesday TV shot off the 18 day EMA on that strong trade; it looks as if it is ready to continue the move. Money flow is strong and jumping higher ahead of price. Looking to pick up positions on a further move from here.
Volume: 898.7K Avg Volume: 404.636K
BUY POINT: $60.88 Volume=450K Target=$69.75 Stop=$59.05
POSITION: TV DL - Apr. $60c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/tv.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
BR, COH, EASI, EBAY, GTRC, HDWR, JNPR, MSFT, QCOM
BR: Oil and gas has improved. BR has not done so yet, but it is holding the 50 day EMA, the first think it needed to do.
EBAY: Nice break higher from test of the 18 day EMA. It is in a 4 week lateral consolidation following a 20 point run from its October breakout. Positions form here would be more aggressive, but this stock has not disappointed us since we saw it breakout in Q4 2002, leading the market off the bottom.
GTRC: Continuing the strong rally that started with the early December 50 day EMA test.
QCOM: Rough session Monday, but has held the 18 day EMA for now on this test.
SUBSCRIBER WATCHLIST
We continually receive ideas for potential plays from subscribers. Many times they are already on our watchlists, other times not. We always take a look and sometimes find a gem or two, or more. We don't necessarily endorse these, but want to provide a forum for subscribers with ideas that may appeal to other subscribers. We may just put on the ticker or we might describe our thoughts as to why or why not we think it is a buy or sell. This is a way we can all learn a bit more and maybe find a few more candidates to make us some good money.
Upside:
RSTI: Breaking higher after a week long lateral consolidation of the breakout from a 10 month cup with handle base. Looks ready to continue the breakout run.
EK: Formed something of a reverse head and shoulders over the past two years, broke higher in early October, moving out of the pattern. It immediately tanked to the 50 day EMA. It bounced and has moved laterally the past two months, trying to set back up for the next move. Not the most exciting pattern we have seen.
MTLM: Continuing the breakout move from its 2004 base, surging Tuesday on strong volume. Steel is moving well once more.
Good Investing!
Jon L. Johnson and The Daily Staff
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 of 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
stock ticker
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