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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ALXN; ENER; SYNM; CC
Tuesday night play results:
MINI: Bounced modestly but on low, below average volume. Just wasn't its day.
MOT: Tried to make the run higher on improving volume but then turned over and sold to the 18 day EMA on the close.
SNDK: Solid volume as SNDK rallied but it too was not immune to the selling, giving back over half its gain.
CMVT: Volume was up as CMVT tried to make the break higher but it faded into the close.
VIVO: Nice doji at the 10 day EMA on rising, average volume.
New Plays:
Upside:
Play Date: 08/24/2005
FTO (Frontier Oil--$31.69; +0.79; optionable): Oil and gas refining
http://biz.yahoo.com/p/f/fto.html
After Hours: $31.69
STATUS: Ascending triangle. Nice volume Wednesday as FTO moved up off the 10 day EMA (30.89), making a higher low in a series of higher lows in its 7 week base. Using the 50 day EMA (28.95) as the general support as it moves up with a constant top near 32. Solid 3 to 1 accumulation in the pattern shows solid buying. Ready to move in as VLO breaks higher on continued strong volume.
Volume: 1.358M Avg Volume: 1.268M
BUY POINT: $32.25 Volume=1.5M Target=$37.55 Stop=$30.35
POSITION: FTO AF - Jan. $30c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/fto.html
Play Date: 08/24/2005
PPDI (Pharmaceutical Prodcut Dev.--$57.14; +2.11; optionable): Medical labs
http://biz.yahoo.com/p/p/ppdi.html
After Hours: $57.13
STATUS: Breakout test. Strong volume Wednesday, moving easily above average, as PPDI rallied off the 50 day EMA test (53.66). This looks like the continuation of the mid-July breakout move that saw PPDI explode off of the 50 day and out of its 12 week double bottom base. Money flow is surging higher ahead of price. Ready to move in on a further solid volume gain.
Volume: 1.022M Avg Volume: 379.791K
BUY POINT: $57.38 Volume=547K Target=$64.55 Stop=$55.55
POSITION: PJQ AK - Jan. $55c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/ppdi.html
Downside:
Play Date: 08/24/2005
ADCT (ADC Telecom--$22.02; -0.62; optionable): Telecom equipment
http://biz.yahoo.com/p/a/adct.html
After Hours: $22
STATUS: Put. ADCT peaked at 26.39 to start the month, matching its January 2004 high. It faded at that point to test the move, but then collapsed through the 50 day EMA (22.87) on a huge volume spike. It moved laterally this week on lower trade, and rallied up to the 50 day EMA on the Wednesday high. It could not hold that move and rolled back over to close negative. Money flow is still dropping ahead of the stock, and we are looking for ADTC to continue the move lower after this test of the 50 day EMA breakdown. A move to the target lands us a 43%ish gain.
Volume: 1.263M Avg Volume: 1.846M
BUY POINT: $21.91 Volume=2M Target=$19.89 Stop=$22.65
POSITION: TLQ VX - Oct. $22.50p (-48 delta)
http://www.investmenthouse.com/ci/adct.html
Play Date: 08/24/2005
JCP (J.C. Penney--$49.72; -0.69; optionable): Department stores
http://biz.yahoo.com/p/j/jcp.html
STATUS: Put. Retail has enjoyed a nice run, but with the consumer struggling after the sustained gasoline price rise it is stumbling. JCP peaked in late July on very low volume and then gapped sharply lower the first week of August on strong volume. It fell through the 50 day EMA (52.70), rallied back up to test but only made it to the 10 day EMA (50.93), and then fell again. Managed to move laterally as the market consolidated the past week, but started lower Wednesday as volume started higher. Money flow is falling along with the price. Looking to move in on a continued drop. A move to the target lands us a 40%ish gain.
Volume: 2.13M Avg Volume: 2.101M
BUY POINT: $49.65 Volume=3.2M Target=$47.59 Stop=$50.97
POSITION: JCP VJ - Oct. $50p (-47 delta)
http://www.investmenthouse.com/ci/jcp.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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us stock market
stock recommendation
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