us stock market, stock ticker

Begin part 3 of 3

THE PLAYS

Good movers: GSF; IWM (bonus); IWN; SPY

Monday night play results:
AAPL: Fell back to the 18 day EMA on again below average volume.
CNQR: Doji, holding its ground during the market selling.
PSYS: Moved higher in the range but no volume to really push it.
IWN: Turned lower from the 200 day SMA.
SPY: Turned over on strong volume from the 10 day EMA.

Upside:

Play Date: 10/18/2005
PNRA (Panera Bread--$56.8; +3.42; optionable): Specialty eateries
http://biz.yahoo.com/p/p/pnra.html
After Hours: $56.79
STATUS: Reverse head and shoulders. Announced better than expected earnings, gapping higher on strong volume and driving a final stake into the Adkins diet. PNRA was hurt by the low carb fad that someone on Kudlow & Cramer said was not a fad but claims he said it was a fad all along. In any event PNRA gapped higher over the 200 day MA (55.43). It formed a 10 week reverse head and shoulders at the bottom of its 16 week cup base; we often see that pattern at that point, setting up the move off the bottom to form the right side of the base. A bit early from where we usually move in, but looking very strong here, ready to follow that surging money flow higher.
Volume: 2.112M Avg Volume: 622.688K
BUY POINT: $57.71 Volume=750K Target=$65.35 Stop=$55.22
POSITION: UPA BK - Feb. $55c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/pnra.html

Play Date: 10/18/2005
VSEA (Varian Semiconductor--$43.01; -0.38; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
After Hours: $43.92
STATUS: Double bottom w/handle. Weathered the NVLS earnings quite nicely, easing back to the 50 day EMA (42.60) and forming a handle to its short 8 week base. Solid 3 to 1 accumulation (3 up price weeks on rising volume to 1 down price week on rising volume) shows net buying during the base. Again, really like the way VSEA is holding up in the market selling, minding its own business and setting up its base for the next breakout. Consequently relative strength is solid. Strong money flow is leading higher, jumping despite the recent pullback. After this pullback it needs to show us a strong break higher on good volume.
Volume: 615.511K Avg Volume: 726.312K
BUY POINT: $44.71 Volume=1.1M Target=$51.45 Stop=$42.65
POSITION: UES BI - Feb. $45c (48 delta) &/or stock
http://www.investmenthouse.com/cd/vsea.html

Downside:

Play Date: 10/18/2005
DVN (Devon Energy--$59.3; -3.7; optionable): Not so big oil
http://biz.yahoo.com/p/d/dvn.html
STATUS: Head and shoulders. DVN is another energy stock diving lower on very strong volume. It is making the breakdown from its 6 week bearish base, following money flow that has turned down and is diving lower ahead of price. We are looking for the breakdown to take it to the mid-August low at 55, but the height of the pattern suggests it could go a bit lower. A move to our target lands us a 40%ish gain.
Volume: 4.635M Avg Volume: 3M
BUY POINT: $58.97 Volume=3M Target=$55.95 Stop=$60.55
POSITION: DVN WL - Nov. $60p (-49 delta)
http://www.investmenthouse.com/cd/dvn.html

SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.

AAPL, CELG, BR, COH, PSYS, RTSX, STN

New additions: NVDA; UNH

NVDA: Testing the 50 day EMA on very low volume, holding support after the August breakout from a 22 week ascending triangle and run higher. Strong stock defying the market selling. A move over 32.65 on stronger, above average volume is the entry point.

UNH: Breakout test. UNH broke out from an 11 week double bottom with handle base in mid-September and rallied to 58. It has tested the 50 day EMA, held, and rebounded. After that move it has rested this week in the market selling. After this lateral move it is ready to continue higher.

SUBSCRIBER WATCHLIST

We continually receive ideas for potential plays from subscribers. Many times they are already on our watchlists, other times not. We always take a look and sometimes find a gem or two, or more. We don't necessarily endorse these, but want to provide a forum for subscribers with ideas that may appeal to other subscribers. We may just put on the ticker or we might describe our thoughts as to why or why not we think it is a buy or sell. This is a way we can all learn a bit more and maybe find a few more candidates to make us some good money.

BOOM: Applies coatings to metals with an explosive process. A very volatile stock, it is working on a ragged handle to an 11 week double bottom with handle base. Looking for a strong move over 21.75 to enter.

Good Investing!
Jon L. Johnson and The Daily Staff

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 of 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 ticker