|
|
us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: OXPS; PSSI
Strong plays:
1) AMED: Volume was up as AMED moves toward the breakout.
2) KOMG: Forming a nice handle.
3) VSAT: Making the test of the nice breakout.
4) AMT: Holding up well, setting the breakout even as the market sells
5) BBBB: Low volume test back to the 10 day EMA.
NEW PLAYS:
Upside plays:
Play Date: 11/28/2005
AMED (Amedisys--$42.32; +0.57; optionable): Home health care
http://biz.yahoo.com/p/a/amed.html
STATUS: Reverse head and shoulders. Taking a second look at AMED as it continues to form up its base, setting up for a breakout to a new all-time high. Nice 16 week base has set up using 200 day SMA (35.58) on the low in October as support. Solid 4 to 2 accumulation in the pattern shows net buying, and solid money flow is building toward the breakout move. Solid pattern and great fundamentals.
Volume: 317.556K Avg Volume: 479.177K
BUY POINT: $43.66 Volume=719K Target=$51.45 Stop=$40.95
POSITION: CQW CH - Mar. $40c (62 delta) &/or Stock
http://www.investmenthouse.com/ct/amed.html
Play Date: 11/28/2005
KOMG (Komag--$33.22; +0.01; optionable): PC data storage devices
http://biz.yahoo.com/p/k/komg.html
After Hours: $35.01
STATUS: Cup w/handle. KOMG is forming a handle to its 14 week base, easing back the past three sessions on low, below average volume. The base formed using the 200 day SMA (28.47) as support, an important institutional support level. Positive accumulation shows net buying during the base. Setting up for the breakout and move to a new all-time high. We can let it run to the prior high and make a nice gain; if it breaks over that level, all the better. Solid fundamentals to go along with the base.
Volume: 852.144K Avg Volume: 1.393M
BUY POINT: $33.88 Volume=2.1M Target=$39.95 Stop=$32.25
POSITION: QKX CG - Mar. $35c (48 delta) &/or Stock
http://www.investmenthouse.com/ct/komg.html
Play Date: 11/28/2005
RIO (Companhia Vale Do Rio Doce--$43.59; -1.00; optionable): Steel and iron ore
http://biz.yahoo.com/p/r/rio.html
STATUS: Ascending triangle. RIO has formed a short 9 week base, using the 50 day EMA (40.85) as support as it makes higher and higher lows below a constant top at 45. That is building pressure from below, setting up the breakout move. Excellent 4 to 1 accumulation in the base (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows great institutional buying continues. Fell back to the 10 day EMA (43.27) on rising though still below average volume Monday; needs to hold there or at the 18 day EMA (42.69) where it makes a higher low and then makes the breakout.
Volume: 2.412M Avg Volume: 2.78M
BUY POINT: $44.65 Volume=4.3M Target=$52.95 Stop=$42.65
POSITION: RIO CH - Mar. $40c (54 delta) or RIO CI - Mar. $45c (44 delta) &/or Stock
http://www.investmenthouse.com/ct/rio.html
Play Date: 11/28/2005
VSAT (Viasat--$27.63; -0.21; optionable): Telecom equipment
http://biz.yahoo.com/p/v/vsat.html
STATUS: Test breakout. VSAT broke out last week from a short but sweet 7 week cup base sporting strong 3 to 0 accumulation. Strong volume on the move, peaking at 28 Friday and easing back on lower volume. It is likely to test the 10 day EMA (26.75) before it is ready to move back up and continue the breakout. Going to let it make the test and then move in as it rebounds on rising trade. Solid, top-rated in both fundamentals and technical pattern.
Volume: 124.25K Avg Volume: 180.653K
BUY POINT: $27.25 Volume=271K Target=$32.35 Stop=$26.45
POSITION: IQS BE - Feb. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/vsat.html
CONTINUING PLAYS
Play Date: 11/21/2005
AMT (American Tower--$26.39; +0.15; optionable): Wireless towers
http://biz.yahoo.com/p/a/amt.html
STATUS: Breakout test. Moving in a very tight range over the 10 day EMA (26.04) on below average volume, ignoring the market selling. AMT has been moving laterally for the past two weeks, now the range tightening. That often occurs before the move higher continues. Nice test of the breakout from its 8 week base. Strong money flow is leading higher. Just waiting for the volume to come in. To recap: AMT broke out in early November, moving out of a short 7 week base that formed along the 50 day EMA. Solid 3 to 0 accumulation in the base (3 up price weeks on rising volume to 0 down price weeks on rising volume) shows plenty of buying setting up the breakout. It has moved more or less laterally the past two weeks, holding above the 18 day EMA, showing good price/volume action with the up session showing the strong, above average volume spikes. Another good session Monday, moving up on rising volume. Money flow is rallying ahead of price, and we anticipate AMT will follow it.
Volume: 2.393M Avg Volume: 3.312M
BUY POINT: $26.49 Volume=4M Target=$31.45 Stop=$25.08
POSITION: AMT DE - Apr. $25c (74 delta) &/or Stock
http://www.investmenthouse.com/ct/amt.html
Play Date: 11/05/2005
BBBB (Blackboard--$28.69; -0.24; optionable): Multimedia and graphics
http://biz.yahoo.com/p/b/bbbb.html
STATUS: Breakout test. Strong move higher Wednesday on excellent volume as BBBB resumed the breakout move. Volume ran out and it has faded back to the 10 day EMA (28.44) the past two sessions. Nice set up for the breakout; just need to be patient and let it show us the move. To recap: Still working in a very tight, lateral move above the 18 day EMA (28.10) on low volume as it completes the test of the October breakout from a 13 week flat base. Strong money flow continues as BBBB makes this test, a good indication of a continued breakout move ahead.
Volume: 166.809K Avg Volume: 273.609K
BUY POINT: $29.05 Volume=385K Target=$34.65 Stop=$27.55
POSITION: BPU DF - Apr. $30c (48 delta) &/or Stock
http://www.investmenthouse.com/ct/bbbb.html
Play Date: 11/21/2005
CYTC (Cytyc--$26.79; +0.31; optionable): Medical instruments
http://biz.yahoo.com/p/c/cytc.html
After Hours: $26.81
STATUS: Cup w/handle. Still set up to make the move, ignoring the selling Monday, though it did dip below the 18 day EMA (26.41) intraday before recovering. Still set up well to make the breakout and head to a new all-time high. To recap: CYTC is ready to make the breakout from its 11 month base. The past 8 weeks it formed a double bottom with handle, the 'handle' to the larger base. Strong 11 to 5 accumulation has set the breakout. CYTC had a torrid run from 2003 to 2004 and needed this base. We want to see a high volume breakout to show us that the big buyers are really running back to the stock when it makes its move.
Volume: 412.321K Avg Volume: 631.929K
BUY POINT: $27.11 Volume=957K Target=$32.45 Stop=$25.98
POSITION: YQK BE - Feb. $25c (76 delta) &/or Stock
http://www.investmenthouse.com/ct/cytc.html
Play Date: 11/19/2005
HSP (Hospira--$44.2; 0; optionable): Pharmaceutical and medication delivery
http://biz.yahoo.com/p/h/hsp.html
STATUS: Breakout test. Still working laterally above the 10 day EMA (44.00), tapping that level Monday on rising though still below average volume. Nice test of the breakout, refusing to give back any gains. Being patient and letting it finish this test. When it shows us the upside volume we will move in. To recap: HSP has spent the past week in a flying plateau, a tight lateral move that follows a strong break higher. HSP broke out from a 9 week base two weeks back, moving to a new all-time high. Solid 4 to 2 accumulation (4 up price weeks on rising volume to 2 down price weeks on rising volume) shows net buying and complements the strong money flow. Ready to move in as it makes the break higher from this plateau on continued strong volume. A solid stock fundamentally and technically.
Volume: 404.3K Avg Volume: 600.228K
BUY POINT: $44.95 Volume=900K Target=$51.95 Stop=$43.05
POSITION: HSP BI - Feb. $45c (52 delta) &/or Stock
http://www.investmenthouse.com/ct/hsp.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.
|
us stock market
stock recommendation
|
