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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CWTR; MDRX; WHT
Tuesday night play results:
AVID: Tried to make the run but the market was not ready. Low volume pullback, holding support.
DOX: Nice tight doji on the 10 day EMA.
ENDP: Holding steady on lower volume.
SPLS: Rallied higher but gave it back on the close. Still looks ready.
New Plays:
Upside:
Play Date: 03/09/2005
EW (Edwards Life Sciences--$43.47; +0.4; optionable): Medical appliances
http://biz.yahoo.com/p/e/ew.html
STATUS: Breakout test. A nice low volume pullback to test the 18 day EMA (42.79) looks very good as the rest of the market sells harder. EW is a leader, coming back to test the recent move higher out of an 11 week cup with handle base sporting outstanding 4 to 0 accumulation (4 up price weeks on rising volume to 0 down price weeks on rising volume). that shows a lot of buyers still wanting to own the stock even at these all-time high levels. Lots of happy shareholders as opposed to those with latent hostilities ready to take it out on the stock. Super money flow is leading higher. Relative strength broke out on the breakout move and remains strong, ready to go again. That shows strength in the breakout move. Looking for volume to turn back up as EW resumes its run higher.
Volume: 224.1K Avg Volume: 428.954K
BUY POINT: $44.08 Volume=600K Target=$50 Stop=$42.65
POSITION: EW HI - Aug. $45c (43. delta) &/or Stock
http://www.investmenthouse.com/ci/ew.html
Play Date: 03/09/2005
ILA (Aquila--$3.93; -0.09; optionable): Electricity and natural gas utilities.
http://biz.yahoo.com/p/i/ila.html
STATUS: Test breakout. ILA jumped higher this month, breaking out of a 13 week ascending triangle on some strong volume. That base is part of a larger cup base that started last April. It has eased back this week on lower and lower volume, showing few sellers as it tests the move higher. Indeed Wednesday it practically ignored the rest of the market. Solid 5 to 3 accumulation in the base and some surging money flow shows plenty of buyers. Nice explosive breakout, orderly test, and now it looks ready to resume the breakout move.
Volume: 1.573M Avg Volume: 1.186M
BUY POINT: $4.04 Volume=1.8M Target=$4.85 Stop=$3.78
POSITION: ILA GZ - July $2.50c (97 delta) &/or Stock
http://www.investmenthouse.com/ci/ila.html
Play Date: 03/09/2005
MTEX (Mannatech--$25.16; -0.22; optionable): Drug products
http://biz.yahoo.com/p/m/mtex.html
STATUS: Breakout test. MTEX is ready for another all-time high, moving laterally the past two weeks, testing the breakout from a 14 week cup with handle base. The base formed using the 50 day EMA (22.03) as support, an important level where the big money steps in to support the stock. Accumulation is solid at 4 to 2, showing that they are indeed stepping in to support this strong leader. Solid money flow. Relative strength broke out on the move, a testament to the stock's performance versus the market. May take another day or two, but it is getting ready to continue the breakout move.
Volume: 186.543K Avg Volume: 188.136K
BUY POINT: $26.21 Volume=282K Target=$31 Stop=$23.62
POSITION: RQY FE - June $25c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/mtex.html
Play Date: 03/09/2005
TERN (Terayon Communication--$3.26; +0.16; optionable): Cable modems, digital video equipment, etc.
http://biz.yahoo.com/p/t/tern.html
After Hours: $3.15
STATUS: 50 day EMA test. Great volume Wednesday as TERN jumped off the 50 day EMA (2.96) as it tries again to continue the move off the bottom of its 18 month base. It broke over the 200 day SMA (2.23) in December and January, and has been using the 50 day EMA since to make its halting advance. It just made a higher low off the 50 day, and that volume as it moved off that support showed money moving in. Indeed, money flow is very strong, moving higher and well out in front of the stock. It eased back to the 50 day on very low volume the past week, showing few sellers. The volume off this level shows the big buyers stepping in. Looking for an even stronger volume session to move in.
Volume: 1.115M Avg Volume: 989.181K
BUY POINT: $3.39 Volume=1.5M Target=$4.25 Stop=$3.17
POSITION: TUN FZ - June $2.50c (91 delta) &/or Stock
http://www.investmenthouse.com/ci/tern.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.
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stock recommendation
stock market recommendation
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