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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: GMT; JCOM; PPDI; USNA; ISSX
Weekend play results:
HOT: No volume as it held steady over the 50 day SMA.
IJR: Nice doji on the 50 day EMA.
IVN: Gapped higher on news of discovery is a significant find.
POOL: Still testing the 50 day EMA as volume fell back below average.
SWN: Holding the 18 day EMA.
TRMB: Volume was strong as gapped higher on open but volatile session.
New Plays:
Upside:
Play Date: 03/21/2005
ATK (Alliant Techsystems--$72.07; -0.04; optionable): Aerospace/defense
http://biz.yahoo.com/p/a/atk.html
STATUS: Breakout test. ATK is making the second test of the early February breakout from its 7 month cup with handle base. After a strong surge to start March it hit 75 and then used the market weakness to come back to test the move, holding the 18 day EMA (71.50) the past week on low, below average volume as the market sold. Money flow has remained strong as it makes the lateral consolidation, and relative strength has started the breakout once more even as the stock has made the test. Strong 8 to 4 accumulation in the base (8 up price weeks on rising volume to 4 down price weeks on rising volume) shows solid buying and set up the breakout and run higher. Strong stocks make 4 to 5 such bounces, and that leaves plenty of room upside for ATK. Looking to move back in as volume jumps and the stock does the same off the 18 day EMA.
Volume: 167.3K Avg Volume: 260.545K
BUY POINT: $72.77 Volume=400K Target=$79 Stop=$71.32
POSITION: ATK HN - Aug. $70c (73 delta)
http://www.investmenthouse.com/ci/atk.html
Play Date: 03/21/2005
ECA (Encana Corp.--$69.11; -0.82; optionable): Independent oil and gas. Splits 2:1 on 5-23-05
http://biz.yahoo.com/p/e/eca.html
STATUS: Test 18 day EMA. ECA is making its second test of the 18 day EMA (68.23) after hitting 71.85ish twice on the highs for the month. Monday it gapped lower and tapped the 18 day on the low, managing to rebound and cut some of its losses into the close. The oil and gas stocks, after some struggling, are getting their legs back under them. Looking for ECA to jump off this level and clear the 10 day EMA (69.27) on even better volume. Strong money flow is leading higher.
Volume: 1.136M Avg Volume: 974.227K
BUY POINT: $70.05 Volume=1.4M Target=$75.55 Stop=$60.08
POSITION: ECA GN - July $70c (50 delta)
http://www.investmenthouse.com/ci/eca.html
Play Date: 03/21/2005
HNT (Healthnet--$31.80; +0.07; optionable): Health care plans
http://biz.yahoo.com/p/h/hnt.html
STATUS: Breakout test. HNT blasted higher to start the month on a Bear Stearns upgrade. That news gapped it out of an 11 week flat base that was part of a larger 13 month cup with handle. Accumulation in the recent smaller base was a solid 3:1 and 15:10 in the larger base. That shows solid buying as the stock consolidated. It has spent the last two weeks of market selling testing back on lower, below average volume until the last two sessions when volume started rising back above average. It has come back to fill part of the gap, holding the 18 day EMA (31.33), an important near term support point. Strong money flow has already turned higher ahead of the stock on this pullback, ready to lead higher. Looking for continued stronger volume as it moves through the buy point.
Volume: 843.3K Avg Volume: 710.5K
BUY POINT: $32.45 Volume=1M Target=$36.95 Stop=$31.21
POSITION: HNT GZ - July $32.50c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/hnt.html
Play Date: 03/21/2005
WDC (Wester Digital--$12.05; +0.46; optionable): PC data storage devices
http://biz.yahoo.com/p/w/wdc.html
STATUS: Test 18 day EMA. WDC is making the second test of the breakout from a 7.5 month reverse head and shoulders base, bouncing off the 18 day EMA (11.66) Monday on a big volume surge. No real news pushing the stock other than a good pattern. This is all part of a larger 18 month pattern with WDC making a comeback after a hard 2004. This is the second test, meaning it has 2 or 3 such bounces still ahead of it. Showed excellent relative strength Monday with relative strength breaking out once more. Money flow is also strong, leading higher even as the stock made the recent pullback. Looking for some continued decent volume as it continues this rebound.
Volume: 4.024M Avg Volume: 2.107M
BUY POINT: $12.25 Volume=2.6M Target=$14.38 Stop=$11.54
POSITION: WDC GB - July $10c (88 delta) &/or Stock
http://www.investmenthouse.com/ci/wdc.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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