|
|
us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: DESCK ISIX; KOSP; FDX
Best Plays:
1) DJO: Preparing for the next all-time high.
2) IIJI: Lots of momentum.
3) EMKR: Rallying on volume.
4) IDBE: Just needs some volume.
5) VASC: The volume is coming back as it starts the next bounce.
6) VIVO: Looks ready.
NEW PLAYS:
Upside:
Play Date: 07/18/2005
DJO (DJ Orthopedics--$27.87; -0.09; optionable): Medical appliances
http://biz.yahoo.com/p/d/djo.html
STATUS: Flat. Making a higher a low at the 18 day EMA (27.88) in its 9 week base that formed along 50 day EMA (27.30). A nice, orderly base with positive accumulation and money flow rallying ahead of price. Volume trailed off the last two weeks as DJO eases along the 50 day EMA; looks like the quiet before the storm as DJO readies for a new all-time high.
Volume: 139.2K Avg Volume: 239.972K
BUY POINT: $28.98 Volume=360K Target=$33.88 Stop=$27.72
POSITION: DJO LE - Dec. $25c (72 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/djo.html
Play Date: 07/18/2005
IIJI (Internet Initiative Japan--$10.60; +1.77; optionable): Commercial internet access and network solutions in Japan
http://biz.yahoo.com/p/i/iiji.html
After Hours: $10.66
STATUS: Test 18 day EMA. Lots of momentum in IIJI. It exploded higher to start June, rallying over 13. It plumbed back to the 50 day EMA (7.46) where it found support and then started to build back up, rallying off that near support level. After a good test last week it exploded off the 18 day on strong, above average volume. Ready to move in on a continued break higher. With this momentum we want to jump on another move higher.
Volume: 8.336M Avg Volume: 4.136M
BUY POINT: $10.73 Volume=5M Target=$12.95 Stop=$10.12
POSITION: IQD AV - Jan. $10c (56 delta) &/or Stock
http://www.investmenthouse.com/ct/iiji.html
Play Date: 07/18/2005
EMKR (Emcore--$4.71; +0.3; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/e/emkr.html
STATUS: Breakout test. Volume surged Monday as EMKR jumped off the 18 day EMA (4.35), continuing the breakout move from its 21 week cup with handle base. It rallied over 4.50 on the breakout run then came back to test the 50 day EMA (4.08) to end June. It rebounded on lower volume, and then it was good to see the big volume surge Monday. Solid 6 to 4 accumulation in the base (6 up price weeks on rising volume to 4 down price weeks on rising volume) shows net buying. The volume Monday shows buyers moving back in, and EMKR is rallying to follow its strong money flow that has surged ahead of price. Looking to move in on a continued volume bounce.
Volume: 1.085M Avg Volume: 298.362K
BUY POINT: $4.88 Volume=450K Target=$5.97 Stop=$4.54
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/emkr.html
Play Date: 07/18/2005
NWRE (Neoware--$11.53; +0.12; optionable): Networking equipment.
http://biz.yahoo.com/p/n/nwre.html
STATUS: Cup w/handle. Volume has swelled the past week as NWRE readies for the breakout from its 18 week base. That volume swelling is a lot like the activity you have before you leave for a trip: a lot of activity as you get ready to go, then you get in the car and head on out. Strong 6 to 3 accumulation in the pattern shows net buyers, and the volume the past week has us ready for the breakout.
Volume: 80.827K Avg Volume: 85K
BUY POINT: $11.89 Volume=155K Target=$13.78 Stop=$11.18
POSITION: QQA LB - Dec. $10c (62 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/nwre.html
CONTINUING PLAYS
Upside:
Not yet entered:
Play Date: 07/16/2005
IDBE (ID Biomedical--$18.9; +0.49; optionable): Biotechnology
Earnings: Mid-August.
http://biz.yahoo.com/p/i/idbe.html
STATUS: Breakout test. Took another low volume breather, holding onto the break higher from 5 sessions back. Very good action, stingy with its gains. Ready to go when the market bottoms on this pullback. To recap: Tuesday saw IDBE blast out from a 30 week flat base that formed along the 50 day EMA (16.98), a key support level where institutions step in to accumulate shares in their favorite stocks. Accumulation has been a solid 10 to 7, showing there is in fact ongoing buying. This is a base on base pattern, having formed right on the heels of a 15 month cup base. That looks to have weeded out the sellers as IDBE took off last week on the heels of strong money flow. A quick lower volume test back on Thursday and Friday (though Friday posted a gain) is setting up the next move higher. Looking for volume to come back in as IDBE continues its breakout run. A market leader heading to a new all-time high where it will have room to stretch its legs.
Volume: 256.335K Avg Volume: 254.002K
BUY POINT: $19.28 Volume=350K Target=$22.45 Stop=$17.93
POSITION: QQ LW - Dec. $17.50c (68 delta) &/or Stock
http://www.investmenthouse.com/ct/idbe.html
Play Date: 07/09/2005
MLHR (Herman Miller--$32.08; +0.3; optionable): Business equipment
http://biz.yahoo.com/p/m/mlhr.html
After Hours: $32.12
STATUS: Cup w/handle. The volume is starting to come in as MLHR breaks over the April highs in the base. A buy on continued volume upside. To recap: A nice easy pullback the past two weeks as the market struggled, forming the handle to its 13 week base. The pattern formed using the 50 day EMA more or less as support (30.26), a good indication the big money was hanging onto positions and accumulating more stock. Indeed, the solid 4to 2 accumulation shows the buying. Strong money flow is leading higher, and we are looking for MLHR to follow it. A solid, perennial leader, and a breakout takes it toward a new all-time high.
Volume: 435.057K Avg Volume: 344.223K
BUY POINT: New: $32.25 (orig. $31.92) Volume=523K Target=$36.25 Stop=$30.95
POSITION: MHQ KF - Nov. $30c (58 delta) &/or Stock
http://www.investmenthouse.com/ct/mlhr.html
Play Date: 07/13/2005
PRFT (Perficient--$7.70; -0.03; no options): Business software
http://biz.yahoo.com/p/p/prft.html
STATUS: Double bottom w/handle. Nice, nice handle continues to form with a very low volume doji Monday that held the 18 day EMA (7.50) on the low. It has set itself up to make the move, and now we just have to be patient and let it show us the jump higher. To recap: PRFT is setting up for the breakout to a 4.5 year high as it works on the handle to its 4.5 month base. It used the 200 day SMA (6.50) on the lows of the two legs as support, a key institutional support level. Solid 5 to 2 accumulation shows net buyers, and with the strong money flow PRFT looks solid in making the breakout. Volume has backed off the past couple of sessions after a strong volume jump higher Monday. Looks solid and looking for another break higher on volume.
Volume: 118.034K Avg Volume: 159.634K
BUY POINT: $8.12 Volume=230K Target=$9.75 Stop=$7.55
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/prft.html
Play Date: 07/14/2005
SONO (Sonosite--$33.06; -0.83; optionable): Medical instruments
http://biz.yahoo.com/p/s/sono.html
STATUS: Breakout test. Low volume continues as SONO tests the 18 day EMA (32.96) after the breakout move. Testing back with the market and the low volume shows few sellers. It is ready to go, just needs the market pullback to start to bottom & then this leader can lead back up. To recap: SONO broke out in early July, moving out of its 7 month reverse head and shoulders base. It rallied to 35 on the move and has faded back the past three sessions on lower and lower below average volume, holding the 18 day EMA on the close. Great position to continue the move higher. Strong 7 to 4 accumulation in the base set up the breakout, and this test gives us a good entry point when the stock starts back up on rising volume.
Volume: 65.841K Avg Volume: 122.605K
BUY POINT: $33.72 Volume=175K Target=$38.25 Stop=$33.05
POSITION: UZS LG - Dec. $35c (48 delta) &/or Stock
http://www.investmenthouse.com/ct/sono.html
Play Date: 07/13/2005
VASC (Vascular Solutions--$12.7; +0.54; optionable): Medical instruments
http://biz.yahoo.com/p/v/vasc.html
Earnings: 7-21-05 after the close.
STATUS: Cup w/handle. After the drop to the 10 day EMA (12.19) Friday following the strong move earlier that week, VASC was up Monday on rising, above average volume. Looks ready to go and continuing the breakout move. To recap: Volume shot higher last Wednesday as VASC started the breakout move from its 14.5 month base, a nicely formed pattern sporting solid 13 to 10 accumulation. It has formed the handle the past 9 weeks, and that lateral move shows excellent 4 to 0 accumulation. Instead of moving higher it made the test right off, setting up a good entry point. Nice pattern and the start of a nice breakout move.
Volume: 115.149K Avg Volume: 725K
BUY POINT: New: $12.85 (orig. $13.05) Volume=200K Target=$15.72 Stop=$12.32
POSITION: BOQ LV - Dec. $12.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/vasc.html
Play Date: 07/16/2005
VIVO (Meridian Biosciences--$20.67; +0.1; optionable): Diagnostic substances
http://biz.yahoo.com/p/v/vivo.html
STATUS: Breakout test. Still in the very nice low volume test of the 10 day EMA that is acting as the test of its nice breakout. Just setting up for the next move. To recap: VIVO has eased back to the 10 day EMA (20.37) on very low volume this past week after a strong bounce off the 50 day EMA (19.13) that started three weeks back. It broke out of a 20 week cup with handle base in early June and then fell back to test the move, holding at the 50 day EMA. After the last bounce it looks to be forming a higher low over the 10 day EMA. Looking for a strong volume move off of this level to start the position.
Volume: 37.673K Avg Volume: 112.5K
BUY POINT: $21.05 Volume=170K Target=$24.88 Stop=$20.22
POSITION: ZUG JD - Oct. $20c (59 delta) &/or Stock
http://www.investmenthouse.com/ct/vivo.html
Play Date: 07/16/2005
WITS (Witness Systems--$18.6; +0.12; optionable): VOIP telephony solutions for improving customer interactions, etc.
Earnings: July 27
http://biz.yahoo.com/p/w/wits.html
STATUS: Double bottom w/handle. Volume is edging higher but still below average as WITS continues to work on the handle to its base. Taking its time and setting up regardless of what the market is doing. Will be ready to go any time now. To recap: Working laterally the past three weeks on mostly lower volume, forming the handle to its 22 week pattern as WITS sets up for a 5 year high. Excellent 7 to 3 accumulation shows plenty of buyers moving in during the pattern. Money flow is also surging higher as price moves laterally in the handle, another good indication of ongoing buying. With money flow leading well ahead of price, that is a strong positive for a breakout move to come. Solid base that is setting up under the radar of many analysts.
Volume: 277.485K Avg Volume: 333.741K
BUY POINT: $18.84 Volume=501K Target=$21.95 Stop=$18.08
POSITION: UPJ LW - Dec. $17.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/wits.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.
|
us stock market
stock recommendation
|
