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world stock market, us stock market
Begin part 3 of 3
THE PLAYS
Good movers: ENER; GYI; EPD; ISSC
Thursday night play results:
CONR: Nice low volume day of rest as CONR sets up for the next leg higher.
GNSS: Basically flat on lower volume after a solid Thursday move.
EPD: Nice move lower as EPD continues its run lower.
WFR: Reached lower Friday, but rebounded to hold its position below the 50 day EMA.
FLSH: Gave the Thursday move back but still in the handle.
New Plays:
Upside:
Play Date: 08/27/2005
ISIL (Intersil Holdings--$20.21; -0.02; optionable): Semiconductors
http://biz.yahoo.com/p/i/isil.html
After Hours: $20.20
STATUS: Trading range breakout. ISIL broke out from an 11 week trading range between 18.65 and 20.15. ISIL broke higher Monday, moving out of the range and then settled back right on top of it as the selling resumed during the week. Solid 3 to 1 accumulation in the base (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows solid buying during the trading range, and money flow is strong and moving higher ahead of price. Looking for ISIL to resume the break higher after this modest pullback as the market sold off. It has plenty of strength and solid technical underpinnings.
Volume: 929.361K Avg Volume: 1.434M
BUY POINT: $20.68 Volume=2.2M Target=$23.95 Stop=$19.75
POSITION: UFH AD - Jan. $20c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/isil.html
Play Date: 08/27/2005
PSSI (PSS World Medical--$14.47; +0.03; optionable): Medical equipment
http://biz.yahoo.com/p/p/pssi.html
After Hours: $14.48
STATUS: Double bottom w/handle. A very compact pattern just starting to form its handle Thursday and Friday. This short 5 week pattern is acting as a consolidation of the breakout from a 7 month pattern in late July. Solid 2 to 0 accumulation in that short base shows the accumulation continues as does the surging money flow. The current base used the 50 day EMA (13.41) as support for the lows on the two legs. A good consolidation of the breakout with volume surging Wednesday and Friday. Relative strength broke out late in the week. Looks solid on all fours.
Volume: 700.623K Avg Volume: 455.885K
BUY POINT: $14.75 Volume=650K Target=$16.96 Stop=$14.34
POSITION: PYQ BC - Feb. $15c (48 delta) or PYQ KV - Nov. $12.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/pssi.html
Play Date: 08/27/2005
RESP (Respironics--$39.08; +0.52; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
STATUS: Ascending base. RESP broke higher off the 50 day EMA (37.03) Tuesday and Wednesday, surging on strong trade. We were tempted to enter on that move but figured we would see it make a test and then start back up. It did that Thursday, holding above the 10 day EMA (38.36) as it eased back before it rebounded Friday. Volume was not there, but we anticipate it will return this week as RESP continues its move higher. Strong 4 to 1 accumulation in the pattern, and with money flow surging higher as well we anticipate a nice continuing move from this market leader. Relative strength demonstrates it is a market leader and it is in position to resume the breakout this week.
Volume: 325.872K Avg Volume: 366.28K
BUY POINT: $39.48 Volume=525K Target=$44.95 Stop=$38.21
POSITION: RBQ AH - Jan. $40c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/resp.html
Play Date: 08/27/2005
WSSI (Websidestory--$16.53; +0.26; no options): Customer information management
http://biz.yahoo.com/p/w/wssi.html
STATUS: Double bottom w/handle. A newcomer to the market in October 2004, WSSI is working on its second base, a 7 week pattern that is acting as the consolidation from the breakout of its first 6.5 month base. Positive accumulation in the current base that used the 50 day EMA (15.06) as support (something the indices have failed to do) pairs up with surging money flow. Broke higher Monday but then came back to test in the market selling, holding the 18 day EMA (16.04) as it did. Looks super and ready to continue the move higher as volume jumped back above average Friday as WSSI moved up off the 18 day.
Volume: 345.338K Avg Volume: 247.017K
BUY POINT: $17.05 Volume=371K Target=$20.55 Stop=$16
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/wssi.html
Downside:
Play Date: 08/27/2005
IJR (Ishares S&P 600 Smallcap--$55.74; -0.94; optionable): Small cap ETF
http://biz.yahoo.com/p/i/ijr.html
STATUS: Head and shoulders. After a good run up the 18 day EMA (56.80) following the July breakout, the small caps have formed a 7 week head and shoulders pattern with the neckline at the 50 day EMA (56.40). Friday IJR broke down through that neckline. When a head and shoulders breaks lower, the rule of thumb is that the drop is as low as the pattern was high. In this case that is 3 points, taking IJR easily down to the 200 day SMA (53.90. We are looking at that as our initial target, and a move to that level lands us a 40%ish gain. Money flow is leading lower and we want to take part in the decline.
Volume: 446K Avg Volume: 1.233M
BUY POINT: $55.64 Volume=1M Target=$54.14 Stop=$56.04
POSITION: IJO VD - Oct. $56p (-46 delta)
http://www.investmenthouse.com/ci/ijr.html
Play Date: 08/27/2005
YHOO (Yahoo!--$33.57; +0.09; optionable): Internet portal and search
http://biz.yahoo.com/p/y/yhoo.html
After Hours: $33.58
STATUS: Put. YHOO is in formed a broad top over the past 5 months, a pattern resembling a head and shoulders. A rally into earnings in July came close to breaking up the pattern, but YHOO sold hard on the news, gapping down almost 4 points on the news. It recovered to the 50 day EMA (34.54; the news gapped it down through the 200 and the 50 day) but then failed at that level. Last week it managed a rebound to the 10 day EMA (33.73), but volume tailed off Thursday and Friday as the stock tested that level, showing a doji Friday, a sign that indicates this modest rebound is ending. Looking for YHOO to fail here and continued the bounce lower. A move to the target lands us a 42%ish gain.
Volume: 9.84M Avg Volume: 17.085M
BUY POINT: $33.42 Volume=17M Target=$31.92 Stop=$33.95
POSITION: YHQ VG - Oct. $35c (-64 delta)
http://www.investmenthouse.com/ci/yhoo.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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