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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers Wednesday: STK; PXP
Best Plays:
1) AV: Volume is jumping as it starts to move off the 18 day EMA.
2) IMGN: Nice orderly test of the breakout.
3) NAVR: Volume jumped as it started toward the breakout.
4) GPN: Has filled the gap on the strong breakout.
5) HYSL: Starting toward the breakout on strong upside volume.
6) KOOL: Volume has started to swell as it crouches at the 18 day EMA.
NEW PLAYS:
Upside:
Play Date: 01/05/2005
AV (Avaya--$17; -0.03; optionable): Telecom processing systems
http://biz.yahoo.com/p/a/av.html
STATUS: Cup w/handle. A very nice handle has formed the past three weeks as AV eases back to the 18 day EMA (16.97). This is the point where the last sellers left in the pattern after 11 months give up as the stock fades again after approaching the prior high. Accumulation in the pattern is a strong 10 to 6 (10 up price weeks on rising volume to 6 down price weeks on rising volume), showing net buyers and sets the base for the breakout. Volume has jumped the past two sessions as the stock held support at the 18 day. It has set up very well and we are ready for the breakout to move into positions.
Volume: 5.404M Avg Volume: 4.195M
BUY POINT: $17.81 Volume=6.3M Target=$21.42 Stop=$16.84
POSITION: AV FW - Apr. $17.50c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/av.html
Play Date: 01/05/2005
BAX (Baxter Intl.--$34.92; +0.37; optionable): Medical instruments
http://biz.yahoo.com/p/b/bax.html
STATUS: Test breakout. Volume surged Wednesday as BAX looked ready to resume the early December breakout move from its 24 week double bottom with handle base. Excellent 9 to 3 accumulation in the pattern shows a lot of buying while the stock consolidated. It broke out, rallied, then moved laterally the past two weeks. Strong money flow is leading the way. Looks ready to blast higher.
Volume: 5.887M Avg Volume: 2M
BUY POINT: $35.11 Volume=3M Target=$42 Stop=$34.11
POSITION: BAX EG - May $35c (58 delta) &/or Stock
http://www.investmenthouse.com/ct/bax.html
Play Date: 01/05/2005
IMGN (Immunogen--$8.17; +0.27; optionable): Drugs
http://biz.yahoo.com/p/i/imgn.html
STATUS: Breakout test. IMGN blasted out of its 8 month cup with handle base to end December, surging on strong volume over 9. As the market has sold back this month IMGN has tested the move, pulling back to the 18 day EMA (7.87) on lighter though still above average volume. Solid 9 to 7 accumulation in the base shows net buyers. Surging money flow is still leading the way higher. Nice test, and Wednesday IMNG was moving up off the 18 day EMA. Ready to continue the breakout move.
Volume: 329.426K Avg Volume: 255.409K
BUY POINT: $8.55 Volume=383K Target=$10.68 Stop=$8.04
POSITION: GMU DU - Apr. $7.50c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/imgn.html
Play Date: 01/05/2005
NAVR (Navarre--$17.66; -0.08; optionable): Wholesale computers
http://biz.yahoo.com/p/n/navr.html
After Hours: $17.77
STATUS: Double bottom w/handle. Volume shot higher Wednesday as NAVR tried the breakout waters but was not quite ready to make the move stick. This short 7 week pattern formed on the heels of the breakout from a 14 week flat base, a nice base on base pattern. Strong 3 to 1 accumulation in this short base, strong money flow. Relative strength is ready for the breakout, a good corroboration of the price breakout. This breakout will send it to an all-time high where there is no overhead resistance ready to push it back down.
Volume: 1.563M Avg Volume: 625.727K
BUY POINT: $18.05 Volume=825K Target=$21.68 Stop=$17.08
POSITION: QIG FW - June $17.50c (50 delta) &/or Stock
http://www.investmenthouse.com/ct/navr.html
CONTINUING PLAYS:
Not yet entered:
Play Date: 12/21/2004
ARRY (Array Biopharma--$8.96; -0.14; optionable): Medical labs
http://biz.yahoo.com/p/a/arry.html
STATUS: STATUS: Cup w/handle. Volume was way down Wednesday as ARRY showed a doji right at support at 9. It is still working on the handle to its 8 month base sporting strong 9 to 5 accumulation (9 up price weeks on rising volume to 5 down price weeks on rising volume). Still very strong money flow ahead of stock. It has stabilized in the handle, showing decent action considering the market. Just waiting for the strong volume rebound through the buy point.
Volume: 138.332K Avg Volume: 161.636K
BUY POINT: $9.57 Volume=375K Target=$11.55 Stop=$8.97
POSITION: AUQ EB - May $10c (45 delta) &/or Stock
http://www.investmenthouse.com/ct/arry.html
Play Date: 01/04/2005
GERN (Geron--$7.99; -0.23; optionable): Drugs
http://biz.yahoo.com/p/g/gern.html
After Hours: $8.20
STATUS: Cup w/handle. Has ignored the recent selling in the market as it continues to form the 9 week base that is its first real pattern off of the bottom of a larger 15 month base. Excellent 4 to 0 accumulation (4 up price weeks on rising volume to 0 down price weeks on rising volume) shows nothing but buyers in this last base. Excellent money flow is leading higher and volume has surged the past two sessions, and it is not selling volume.
Volume: 2.661M Avg Volume: 1.204M
BUY POINT: $8.49 Volume=1.8M Target=$10.88 Stop=$7.98
POSITION: GQD FU - June $7.50c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/gern.html
Play Date: 12/22/2004
GPN (Global Payments--$56.01; -0.68; optionable): Worldwide payment processing
http://biz.yahoo.com/p/g/gpn.html
STATUS: Test breakout. GPN gapped higher in late December the day after it was put on the report. Strong volume move took it to a new high, and it has spent the past week filling the gap on basically low, average volume. Now we are looking for GPN to hold and then start back up on stronger volume.
Volume: 295.2K Avg Volume: 290.772K
BUY POINT: $57.25 Volume=400K Target=$66 Stop=$57.12
POSITION: GPN EK - May $55c (66 delta) &/or Stock
http://www.investmenthouse.com/ct/gpn.html
Play Date: 01/04/2005
HYSL (Hyperion Solutions--$46.18; +1.04; optionable): Application software
http://biz.yahoo.com/p/h/hysl.html
STATUS: Double bottom w/handle. The market sold Wednesday but HYSL posted a solid gain on excellent rising volume. Sweet 5 week pattern that is acting as a test of the breakout from an 18 week base in November. Solid 2 to 0 accumulation in the short base and 7 to 5 accumulation in the larger pattern. Solid money flow. Looks ready to go to that all-time high.
Volume: 959.088K Avg Volume: 684.09K
BUY POINT: $46.88 Volume=850K Target=$55 Stop=$45.05
POSITION: WQE EI - May $45c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/hysl.html
Play Date: 12/18/2004
KOOL (Thermogenesis--$6.33; -0.04; no options): Scientific and technical instruments
http://biz.yahoo.com/p/k/kool.html
STATUS: Double bottom w/handle. Has settled back down in the 5 week handle to its 11 month base. Tried the breakout to end the year on strong volume, but the subsequent market selling has pushed it back to the 18 day EMA (6.20). No problem as that keeps it in the pattern. Looks very good with strong 11 to 6 accumulation and money flow out ahead of the price. Held up well, nice pattern, looks ready.
Volume: 276.029K Avg Volume: 241.318K
BUY POINT: $6.54 Volume=350K Target=$7.89 Stop=$6.15
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/kool.html
Play Date: 12/22/2004
NEOL (Neopharm--$11.9; -0.26; optionable): Biotechnology
http://biz.yahoo.com/p/n/neol.html
STATUS: Cup. Continues the pullback on low volume Wednesday, testing the break through the 200 day SMA (10.69) in mid-December. Holding up well in the market selling, preparing to continue the move higher and build the right side of its 8 month base.
Volume: 129.706K Avg Volume: 248.272K
BUY POINT: $13.12 Volume=450K Target=$16 Stop=$12.32
POSITION: UOE DV - Apr. $12.50c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/neol.html
Play Date: 01/03/2005
USNA (Usana Health Science--$33.31; -0.24; optionable): Drug related products
http://biz.yahoo.com/p/u/usna.html
STATUS: Cup w/handle. Another tight doji near the 18 day EMA (33.56) on lower, below average volume Wednesday as USNA continues to work on the handle to a nice 12 week base. This is the part of a larger 14 month base that started back in November 2003. Solid 14 to 9 accumulation in that larger base shows net buyers, setting a good foundation for a breakout move. Looks ready to rebound and start the move, but it has to show us the move first.
Volume: 236.641K Avg Volume: 201.727K
BUY POINT: $35 Volume=303K Target=$42 Stop=$33.42
POSITION: UNX DG - Apr. $35c (50 delta) &/or Stock
http://www.investmenthouse.com/ct/usna.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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