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us stock market, stock split
Begin part 2 of 3
THE PLAYS
Good movers: AFFX; ANTP; CHTT; PRZ; SYNC; TTEC; VMSI
Wednesday night play results:
ANTP: Another strong move.
BOL: Remains solid, ready to break out.
CMVT: Gapped higher but could not hold the move into the close.
PIXR: Gapped higher as well but gave back most of the gain.
QCOM: Fell late in the session.
New Plays:
Upside:
Play Date: 03/25/2005
ABRX (Able Labs--$23.47; +0.93; optionable): Generic drugs
http://biz.yahoo.com/p/a/abrx.html
After Hours: $23.47
STATUS: Cup w/handle breakout. Volume surged Friday as ABRX started the breakout move from its 12 week base that formed using the key support level at the 200 day SMA (20.89) as support. The pattern is part of a larger 21 month base, putting the finishing touches on that long consolidation. Strong 4 to 0 accumulation (4 up price weeks on rising volume to 0 down price weeks on rising volume) shows nothing but buying in the base, and the strong money flow is more indication of buying, surging higher ahead of the price. Relative strength broke out with the stock, a very good corroboration the move has staying power. Looking to start a position on a continued move higher and then add to the position on the test of this move.
Volume: 330.47K Avg Volume: 125.59K
BUY POINT: $23.55 Volume=188K Target=$27.89 Stop=$22.88
POSITION: QAF IX - Sept. $22.50c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/abrx.html
Play Date: 03/25/2005
BEBE (Bebe Stores--$31.80; +0.20; optionable): Contemporary women's apparel
http://biz.yahoo.com/p/b/bebe.html
After Hours: $31.95
STATUS: Breakout test. BEBE split in late December, right in the middle of its 15 week ascending base. Strong 4 to 0 accumulation in the pattern shows all buyers. It broke out in early March, blasting higher on strong volume. It has spent the past three weeks easing back to the 18 day EMA (31.63) on very low, below average volume, holding the breakout move. Money flow continues to higher ahead of price and we expect BEBE to follow it on up. Very strong market leader that has used the recent selling to test the move and set up the continuation of the breakout run.
Volume: 393.39K Avg Volume: 663.545K
BUY POINT: $32.35 Volume=775K Target=$37.48 Stop=$31.52
POSITION: KUO FF - June $30c (71 delta) &/or Stock
http://www.investmenthouse.com/ci/bebe.html
Play Date: 03/25/2005
EEFT (Euronet Worldwide--$27.00; +0.89; optionable): Secure electronic financial transactions.
http://biz.yahoo.com/p/e/eeft.html
After Hours: $27
STATUS: Double bottom w/handle. EEFT started the breakout move Thursday, rallying out of its 14 week base on a strong shot of rising, above average volume. A very nice pattern that formed along the 50 day EMA (25.03) showing strong 4 to 2 accumulation and money flow rising ahead of the price breakout. The move takes it to an all-time high (a new issue in 1997); relative strength broke out with it, a very good confirmation of the move. Looking to buy positions on a continued move higher and then again on the first test of the breakout move.
Volume: 537.636K Avg Volume: 293.181K
BUY POINT: $27.24 Volume=350K Target=$32 Stop=$25.88
POSITION: HSQ HE - Aug. $25c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/eeft.html
Play Date: 03/25/2005
MON (Monsanto--$59.21; -0.11; optionable): Specialty chemicals. Forecast to announce a split 4-6-05.
BACKGROUND: Somewhat of a wildcard as it has no splits in its history.
http://biz.yahoo.com/p/m/mon.html
STATUS: Breakout test. MON jumped out of its 9 week ascending base in early March with a strong volume surge. As the market sold back, it has done the same, but very light, below average volume shows few sellers as the stock holds at the 18 day EMA (59.50). Strong 4 to 1 accumulation in the pattern set up the move, and this is one nice pullback. Looking for it to break through the recent highs on a good volume jump. That is our entry point. Chemicals are a strong leadership group right now.
Volume: 763.8K Avg Volume: 2.238M
BUY POINT: $61.25 Volume=2.5M Target=$73 Stop=$59.65
POSITION: MON GL - July $60c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/mon.html
Play Date: 03/25/2005
RMD (Resmed--$56.97; +1.34; optionable): Medical appliances
http://biz.yahoo.com/p/r/rmd.html
STATUS: 50 day EMA test. RMD exploded higher in early February as it announced huge earnings, gapping out of an 8 month base. It rallied to 61 and has sold back to the 50 day EMA (55.97) during the market selling. It bounced off that level two weeks back but could not hold the move, coming back late last week for another test. Thursday it was off again on rising though still below average volume. This short double bottom test of the 50 day coupled with strong money flow looks ready to send RMD back up in a continuation of the breakout. Strong 9 to 6 accumulation in the base showed net buyers and set up the move. Looking for further volume as it continues the move.
Volume: 164.2K Avg Volume: 229.727K
BUY POINT: $57.21 Volume=300K Target=$64.35 Stop=$55.75
POSITION: RMD GK - July $55c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/rmd.html
Downside:
Play Date: 03/25/2005
LF (Leapfrog Enterprises--$11.56; +0.03; optionable): Learning games
http://biz.yahoo.com/p/l/lf.html
STATUS: Put. LF is in a continuing one and one-half year downtrend, the last 4 months trending lower below the 50 day EMA (11.72). Over the past three weeks it as rebounded back to the 50 day on very low, below average volume. Looking for it to fail here once more foa another downside move. A drop to the target nets us a 60%ish gain.
Volume: 183.3K Avg Volume: 663.772K
BUY POINT: $11.44 Volume=650K Target=$10.03 Stop=$11.75
POSITION: LF QV - May $12.50p (-71 delta)
http://www.investmenthouse.com/ci/lf.html
Play Date: 03/25/2005
SLM (SLM Corp.--$49.06; -0.87; optionable): Student loans
http://biz.yahoo.com/p/s/slm.html
After Hours: $49.10
STATUS: Put. SLM has been struggling the past three weeks at the 50 day EMA (50.06), moving on both sides of that level after recovering some from a January and February sell off. Tuesday it tried to make an upside move but reversed off the high on spiking volume. It slid lower Wednesday and Thursday, breaking back through the 50 day. Money flow is heading lower ahead of price. After that volume reversal and fall back through the 50 day MA we are looking for a downside move toward the February low (46.40). A move to the target gives us a 44%ish gain.
Volume: 1.527M Avg Volume: 2.015M
BUY POINT: $48.95 Volume=2M Target=$46.88 Stop=$49.85
POSITION: SLM QJ - May $50p (-59 delta)
http://www.investmenthouse.com/ci/slm.html
End part 2 of 3
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us stock market
stock split
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