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us stock market, trade stock
Begin part 3 of 3
THE PLAYS
Good movers: ESRX; FLO; GILD; GPN; HCC; UNH
Thursday night play results:
BBBB: Held the 18 day EMA and started back. Looks ready to resume the move.
BJS: Tapped the 50 day EMA on the low and rebounded. Solid.
SAY: Ready to move in as it continues higher.
TALX: Ready to move higher
FRK: Dove lower but managed to rebound with the afternoon market run.
Upside:
Play Date: 10/29/2005
DIOD (Diodes--$36.39; -0.35; optionable): Semiconductor integrated circuits. Forecast to announce a split 11-2-05
BACKGROUND: Last announced a 3 for 2 split on 11-4-03 at $24.
http://biz.yahoo.com/p/d/diod.html
STATUS: Flat. DIOD announced strong earnings last week and gapped higher Thursday. It could not hold the move but tested back to the 50 day EMA (35.75). It is working in a 12 week flat base along the 50 day, sporting 3 to 2 accumulation. Strong money flow is leading this strong market leader higher, and we are looking for a rebound from here to start the play. Top rated in fundamentals to go along with the strong pattern.
Volume: 350.852K Avg Volume: 208.015K
BUY POINT: $37.15 Volume=350K Target=$44.55 Stop=$36.05
POSITION: DUH CG - Mar. $35c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/diod.html
Play Date: 10/29/2005
DNA (Genentech--$87.72; +0.63; optionable): Biotechnology
http://biz.yahoo.com/p/d/dna.html
After Hours: $87.52
STATUS: Double bottom w/handle. A long term market leader DNA enjoyed a nice run earlier in the year and needed a breather. It has formed a nice 8 week base, starting higher Wednesday on strong volume but fading back to end the week on low volume. Solid 3 to 1 accumulation in the pattern shows net buying as it consolidates and sets up the next breakout move. Top rated stock. Looking for strong volume to resume as DNA makes the break higher.
Volume: 2.148M Avg Volume: 3.882M
BUY POINT: $88.88 Volume=5.8M Target=$100 Stop=$86.05
POSITION: DWN CR - Mar. $90c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/dna.html
Play Date: 10/29/2005
ESV (Ensco Intl.--$45.11; +1.02; optionable): Oil and gas service company
http://biz.yahoo.com/p/e/esv.html
STATUS: Double bottom w/handle. A short 4 week pattern has formed after a 6.5 month cup with handle. Nice base on base pattern that really works to set up a strong breakout. 11 to 4 accumulation in the double base pattern shows plenty of net buyers of the stock, setting up the further move higher. Tested the 18 day EMA (42.18) on the Friday low and rebounded to post a solid gain. That looks to be the shakeout that sets up the next move higher. Relative strength broke out, a solid indication for the stock price to follow it.
Volume: 2.674M Avg Volume: 2.639M
BUY POINT: $46.28 Volume=4M Target=$54.45 Stop=$44.35
POSITION: ESV CI - Mar. $45c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/esv.html
Play Date: 10/29/2005
LRCX (Lam Research--$32.96; +0.37; optionable): Semiconductor equipment
http://biz.yahoo.com/p/l/lrcx.html
After Hours: $32.98
STATUS: Breakout test. LRCX broke out from a 7.5 month ascending triangle in early October on strong volume. Rallied to 34.75 on the high and then fell last week with the semiconductors, but did so on low, below average volume. It then tapped the 50 day EMA (31.36) on the low and rebounded for a gain on above average volume. Looks as if that sets the test for the move back up. Strong money flow is leading. Strong 9 to 5 accumulation in the base shows a lot of buying as it built up for the breakout. Looking for a move through the 10 day EMA (33.11) on strong volume to start the play.
Volume: 3.913M Avg Volume: 2.659M
BUY POINT: $33.24 Volume=3.5M Target=$39.95 Stop=$31.95
POSITION: LMQ CF - Mar. $30c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/lrcx.html
Play Date: 10/29/2005
MACR (Macromedia--$43.98; +0.71; optionable): Multimedia and graphics software
http://biz.yahoo.com/p/m/macr.html
After Hours: $43.95
STATUS: Cup w/handle. MACR broke higher Wednesday on strong trade but immediately fell back into its week long handle to its 5 month base. Solid pattern that used the 200 day SMA (37.80) as support, a key institutional support level. Strong 7 to 3 accumulation in the base shows plenty of buying. Money flow is strong and relative strength broke out last week. Looking for MACR to finish off its handle this week an dshow us a strong move higher.
Volume: 1.241M Avg Volume: 851.348K
BUY POINT: $44.45 Volume=1.5M Target=$52.95 Stop=$41.97
POSITION: NRQ BI - Feb. $45c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/macr.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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