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trade stock, stock split
Begin part 3 of 3
THE PLAYS
Good movers: GPN; HCC; TWGP; UNH
Strong plays:
1) ESV: Has made the test and is ready to move higher.
2) IDXX: Surging to a new high.
3) MACR: Very nice handle forming.
4) MCHP: Excellent volume as it continues the gap reversal.
5) BBBB: Test looks through.
6) NWRE: Excellent test looks over.
NEW PLAYS:
Upside plays:
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 (11 up price weeks on rising volume to 4 down price weeks on rising volume) 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/ct/esv.html
Play Date: 10/29/2005
IDXX (Idexx Labs--$68.51; +3.07; optionable): Diagnostic substances
http://biz.yahoo.com/p/i/idxx.html
After Hours: $68.58
STATUS: Ascending base breakout. The recent 14 week base is actually the handle to a larger 17 month cup with handle pattern sporting strong 21 to 14 accumulation. Friday IDXX broke sharply higher on strong volume as the company reported another strong round of earnings. Money flow is strong and rising ahead of price, a good confirmation of the accumulation. Relative strength broke out as well, a good corroboration of the breakout move. Very nice. Looking to enter a position on a continued move higher and then again on the successful test. A technically strong stock with top flight fundamental credentials as well.
Volume: 350.164K Avg Volume: 153.764K
BUY POINT: $68.75 Volume=215K Target=$78.95 Stop=$66.68
POSITION: UID DM - Apr. $65c (74 delta) &/or Stock
http://www.investmenthouse.com/ct/idxx.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/ct/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/ct/macr.html
Play Date: 10/29/2005
MCHP (Microchip--$30.47; +0.68; optionable): Semiconductors
http://biz.yahoo.com/p/m/mchp.html
After Hours: $30.42
STATUS: Trend gap reversal. Two Fridays back MCHP gapped higher on a solid rise in earnings. The move cleared the down trendline that started with the July high near 33. Strong volume accompanies the move and then the stock traded laterally last week on very low trade. Friday it tested lower again, tapping the trendline on the low and then racing back up on solid trade. Surging money flow is racing higher ahead of price. A trend reversal gap is a very strong signal, and we like how it tested on low volume and then started the move back up. Ready to enter on a continued run higher.
Volume: 2.14M Avg Volume: 1.599M
BUY POINT: $30.62 Volume=2M Target=$32.55 Stop=$29.28
POSITION: QMT DF - Apr. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/mchp.html
Play Date: 10/29/2005
RHI (Robert Half Intl.--$36.63; +0.69; optionable): Staffing and outsourcing
http://biz.yahoo.com/p/r/rhi.html
STATUS: Breakout test. RHI is easing back to test the gap higher two Fridays back on a strong earnings report. Strong volume break higher, and a low volume test; that shows very few sellers as it tests. This breakout is from a 12 week flat base sporting strong 4 to 0 accumulation. That base consolidated the July breakout from a long 5 year reverse head and shoulders base. Strong breakout, good consolidation, and now ready to move higher. Money flow is surging higher ahead of price. Relative strength broke out as well. Hitting on all cylinders. Ready to enter the play on a rebound on strong volume.
Volume: 620.8K Avg Volume: 862.324K
BUY POINT: $36.89 Volume=1M Target=$43.45 Stop=$35.55
POSITION: RHI CG - Mar. $35c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/rhi.html
CONTINUING PLAYS
Play Date: 10/26/2005
AKAM (Akami Technologies--$16.84; +0.21; optionable): Internet content delivery for businesses, government agencies
http://biz.yahoo.com/p/a/akam.html
STATUS: Test 18 day EMA. Dropped below the 18 day EMA (16.47) Friday but recovered to hold the 10 day EMA (16.79) on the close. Volume surged as AKAM made the test and rebounded. Good shakeout (got us), and still set to move higher. To recap: AKAM broke out in late September from a 16 month cup with handle base. It tested in the early October selling and bounced off the 18 day EMA. It is making its second test after the breakout, and a strong stock will make four to five such bounces. Strong money flow and a relative strength breakout on the move. The test lower set the next leg higher.
Volume: 2.713M Avg Volume: 1.645M
BUY POINT: $17.15 Volume=2M Target=$20.25 Stop=$16.32
POSITION: UMU BC - Feb. $15c (72 delta) &/or Stock
http://www.investmenthouse.com/ct/akam.html
Buy not hit:
Play Date: 10/27/2005
BBBB (Blackboard--$26.46; +0.56; optionable): Multimedia and graphics software
http://biz.yahoo.com/p/b/bbbb.html
After Hours: $26.48
STATUS: Test breakout. Volume remained at average for the third straight session as it tests the 18 day EMA (25.80) and holds that level. Solid test of the breakout and looks ready to resume the move higher. To recap: BBBB broke higher two weeks back, clearing a solid 13 week flat base formed at the 50 day EMA (24.66) sporting positive 3 to 2 accumulation (3 up price weeks on rising volume to 2 down price weeks on rising volume) goes well with strong money flow. Relative strength broke out with the stock a strong corroboration. It used the recent selling to come back and test the breakout, holding above the 18 day EMA. A new issue in June 2004, BBBB is ready to move to a new high after this test of a solid breakout move.
Volume: 306.321K Avg Volume: 246.743K
BUY POINT: $26.38 Volume=367K Target=$31.65 Stop=$25.55
POSITION: BPU AE - Jan. $25c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/bbbb.html
Play Date: 10/25/2005
GENZ (Genzyme--$71.76; +1.52; optionable): Biotechnology. No announcement on 10-18 w/earnings but forming a solid pattern.
BACKGROUND: Last announced a 2:1 split on 4-25-01 at $101.
http://biz.yahoo.com/p/g/genz.html
After Hours: $71.68
STATUS: Double bottom. Moving laterally the past week on lower, below average volume, holding above the 50 day EMA (70.03). It is forming a nice handle to the pattern, a nice shakeout to set up the breakout move. Just being patient and letting it show us the breakout move given it did not announce with earnings in mid-October. To recap: GENZ is working on an 12 week double bottom, coming off the second low early this month. It is right below the 'hump' near 74, but showing solid 4 to 2 accumulation (4 up price weeks on rising volume to 2 down price weeks on rising volume) and strong money flow leading the way higher.
Volume: 1.803M Avg Volume: 2.292M
BUY POINT: $72.89 Volume=4M Target=$83.78 Stop=$69.69
POSITION: GZQ AN - Jan. $70c (59 delta) &/or Stock
http://www.investmenthouse.com/ct/genz.html
Play Date: 10/06/2005
NVDA (Nvidia--$32.42; +0.97; optionable): Semiconductors
http://biz.yahoo.com/p/n/nvda.html
After Hours: $32.40
STATUS: Test 50 day EMA. Volume moved back up toward average Friday as NVDA fell below the 50 day EMA (31.69) and then recovered to post a nice gain above that level. Money flow has turned sharply higher ahead of price. NVDA held up well as many chips tanked. Really like that relative strength and the volume recovery. Ready to move in as it continues higher through the buy point on strong volume.
Volume: 3.872M Avg Volume: 4.438M
BUY POINT: $32.89 Volume=6.5M Target=$40.45 Stop=$31.38
POSITION: UVA AT - Jan. $32.50c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/nvda.html
Play Date: 10/22/2005
NWRE (Neoware--$17.26; +0.12; optionable): Business customer software
http://biz.yahoo.com/p/n/nwre.html
STATUS: Cup w/handle. Excellent pullback last week on very low, below average volume to test and hold the 10 day EMA (17.03), showing a nice tight doji Friday at that level. This tests a Monday gap higher that took NWRE to the brink of the breakout. Ready to make the move. To recap: NWRE is forming the handle to a big 26 month base, working laterally this month above the 18 day EMA (16.73), using that level to shakeout the last sellers and set up the breakout move. Strong 24 to 17 accumulation in the pattern shows plenty of buying as NWRE sets up a breakout for a new all-time high. Strong money flow is leading higher and relative strength broke out ahead of the price.
Volume: 186.474K Avg Volume: 343.282K
BUY POINT: $18.24 Volume=487K Target=$21.95 Stop=$16.96
POSITION: QQA AW - Jan. $17.50c (51 delta) &/or Stock
http://www.investmenthouse.com/ct/nwre.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.
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