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trade stock, stock split
Begin part 3 of 3
THE PLAYS
Good movers: CERS; INFY; MSTR; OXPS; WBSN
1) BABY: Ready for a new all-time high.
2) MER: Strong stock fundamentally and technically.
3) ORCC: Ready for a 5.5 month high.
4) ACN: Still showing strong positive volume.
5) BRLI: Nice trade is sending it higher.
6) INFY: Nice breakout underway.
7) TSAI: Volume running higher as it tests and rebounds
NEW PLAYS:
Upside plays:
Play Date: 12/17/2005
BABY (Natus Medical--$17.77; +0.29; optionable): Medical appliances
http://biz.yahoo.com/p/b/baby.html
STATUS: Flat base. Nice 7 week base over the 18 day EMA (17.32) is consolidating the strong October run higher when BABY broke out from a similar flat base. Strong volume last Tuesday as BABY tried to make the next move higher and then faded back to the 18 day EMA. Strong 3 to 0 accumulation in the base (3 up price weeks on rising volume to 0 down price weeks on rising volume) shows all buying as the stock consolidates. Strong money flow and relative strength ready to make the breakout as well.
Volume: 101.148K Avg Volume: 191.829K
BUY POINT: $18.21 Volume=288K Target=$21.85 Stop=$17.18
POSITION: QBU DW - Apr. $17.50c (56 delta) &/or Stock
http://www.investmenthouse.com/ct/baby.html
Play Date: 12/17/2005
MER (Merrill Lynch--$68.81; +0.85; optionable): Investment brokerage
http://biz.yahoo.com/p/m/mer.html
After Hours: $68.82
STATUS: Ascending triangle. MER broke out in late October from an 8 month ascending triangle and rallied sharply up to 69. It needed a breather and the past 4 weeks it has moved laterally below that level, making higher lows along the 18 day EMA (67.68), forming another yet smaller triangle. Great volume on the up sessions in the small pattern, setting MER up for the breakout to a 5 year high. Excellent 8 to 4 accumulation in the base goes hand in hand with the strong money flow. Relative strength is already making the breakout move, a very good indication that the stock is ready to make the next price breakout.
Volume: 4.427M Avg Volume: 4.161M
BUY POINT: $69.21 Volume=6.2M Target=$79.55 Stop=$67.55
POSITION: MER DA - Apr. $67.50c (66 delta) &/or Stock
http://www.investmenthouse.com/ct/mer.html
Play Date: 12/17/2005
ORCC (Online Resources--$11.84; -0.03; no options): Outsourced internet financial technology services to the financial service sector.
http://biz.yahoo.com/p/o/orcc.html
After Hours: $11.78
STATUS: Double bottom w/handle. ORCC has formed a nice little 7 week base that follows on the heels of a 16 week cup with handle and breakout in late October. A good base on base pattern that is setting up a strong breakout; these patterns really weed out the sellers. Positive accumulation in the recent pattern and strong money flow show good technical strength as ORCC prepares to breakout to a 5 year high.
Volume: 164.677K Avg Volume: 136.166K
BUY POINT: $12.31 Volume=204K Target=$14.75 Stop=$11.57
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/orcc.html
Play Date: 12/17/2005
PDLI (Protein Design Labs--$29; +0.03; optionable): Biotechnology
http://biz.yahoo.com/p/p/pdli.html
STATUS: Reverse head and shoulders. Showing good action as it sets up for a breakout to a four year high. Nice 15 week base has formed using the 50 day EMA (27.49) as support. Strong 4 to 1 accumulation in the base (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying to set up the breakout to a new high. Strong Thursday volume as it probed the breakout. Looks excellent.
Volume: 1.009M Avg Volume: 1.457M
BUY POINT: $29.65 Volume=2.2M Target=$35.62 Stop=$27.91
POSITION: PQI EF - May $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/pdli.html
CONTINUING PLAYS
Continuing plays:
Play Date: 12/14/2005
ACN (Accenture--$28.59; +0.02; optionable): Management consulting, technology and outsourcing services
http://biz.yahoo.com/p/a/acn.html
STATUS: Test 18 day EMA. ACN is still working laterally over the 10 day EMA (28.51) as it tests its breakout and prepares for the next run higher. Strong trade last week shows the buyers moving in once more; getting closer to the move higher. To recap: Volume has jumped well above average as ACN resumed the breakout Wednesday. Nice volume Friday as it showed a doji at the 10 day EMA. To recap: ACN broke out from an 11 month cup with handle mid-November. It rallied to 28 and tested the 10 day EMA, then rallied to 30 and tested the 18 day EMA; both of those are key near term support levels on breakouts. Wednesday ACN jumped off that support on a second day of strong volume. Still plenty of upside for the stock as it trends higher after its breakout.
Volume: 2.493M Avg Volume: 2.387M
BUY POINT: $29.22 Volume=2.7M Target=$33.95 Stop=$28.08
POSITION: ACN EF - May $30c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/acn.html
Play Date: 12/08/2005
BRLI (Bio-Reference Labs--$19.1; +0.1; optionable): Medical labs
http://biz.yahoo.com/p/b/brli.html
STATUS: Double bottom w/handle. Great volume Friday as BRLI tapped toward the breakout point, but likely the volume had a lot to do with expiration. Still set up in a very nice 10 week base forming over the 50 day EMA (18.13). On the verge of the breakout this week.
Volume: 110.314K Avg Volume: 108.411K
BUY POINT: $19.21 Volume=173K Target=$23 Stop=$18.48
POSITION: BJQ EW - May $17.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/brli.html
Play Date: 12/13/2005
FSL (Freescale Semiconductor--$26.36; -0.14; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/f/fsl.html
STATUS: Test breakout. Still holding the breakout at near support at the 18 day EMA (26.43) on lower volume last week. Strong semiconductor ready to resume the move higher. To recap: FSL broke out in November from a 12 week cup base, rallied, then came back to test the 18 day EMA, the typical near support for a solid breakout. It shot higher to start December, then faded back to the 18 day the past two weeks, holding that level and then moving higher Tuesday on rising though still below average volume. Relative strength is ready to breakout as well, a very good indication of FSL's continued strength as it moves toward a new all-time high.
Volume: 1.559M Avg Volume: 1.749M
BUY POINT: $27.67 Volume=2.4M Target=$33 Stop=$26.32
POSITION: FSL CE - Mar. $25c (69 delta) &/or Stock
http://www.investmenthouse.com/ct/fsl.html
Play Date: 12/14/2005
INFY (Infosys Technologies--$79.89; +2.02; optionable): Technical and system software
http://biz.yahoo.com/p/i/infy.html
After Hours: $79.87
STATUS: Double bottom w/handle. Breaking higher Friday on strong trade, surging out of its 6 month base. Strong stock, strong move, and still a buy on this move. To recap: Showing some good volume spikes the past week. Making the breakout from its 5.5 month base sporting outstanding 7 to 2 accumulation (7 up price weeks on rising volume to 2 down price weeks on rising volume). The base formed using the 200 day SMA (71) as support, a key institutional support level where they either step in and buy or actively sell. With INFY they have been buying as the accumulation indicates. Strong market leader ready for the breakout move.
Volume: 848.235K Avg Volume: 687.042K
BUY POINT: New positions: $80.12 (orig. $78.77) Volume=1M Target=$90.75 Stop=$75.58
POSITION: IUN DP - Apr. $80c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/infy.html
Play Date: 12/05/2005
INGR (Intergraph--$49.37; -0.14; optionable): Technical and system software
http://biz.yahoo.com/p/i/ingr.html
STATUS: Flying plateau. Stronger average volume Friday as INGR again tapped at 50 on the high and faded to close flat. Still set to make the breakout from its 7 week pattern, moving in a narrower range last week over the 18 day EMA (48.76). Ready for a new all-time high and wan tto see that strong volume from the early part of the week continue.
Volume: 335.191K Avg Volume: 325.572K
BUY POINT: New: 50.12 (orig. $49.32) Volume=450K Target=$57.55 Stop=$46.65
POSITION: IGQ DJ - Apr. $50c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/ingr.html
Play Date: 11/28/2005
KOMG (Komag--$35.93; -0.65; optionable): PC data storage devices
http://biz.yahoo.com/p/k/komg.html
STATUS: Cup w/handle. Forming a nice handle to its 15 week cup base, tapping back toward the 18 day EMA (35.13) on the lows to end the week and rebounding to cuts its losses. Very good action in the base, shaking out the sellers after KOMG's move higher in November and early December starts to stall. Nice action and looking for volume to jump as KOMG moves through the buy point.
Volume: 950.558K Avg Volume: 1.245M
BUY POINT: $37.84 Volume=2.1M Target=$43.95 Stop=$35.19
POSITION: QKX CG - Mar. $35c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/komg.html
Play Date: 12/10/2005
LCAV (LCA-Vision--$49.40; +0.2; optionable): Laser vision centers. Forecast 1-24-06
BACKGROUND: Last announced a 3:2 split on 11-17-04 at $32.20.
http://biz.yahoo.com/p/l/lcav.html
After Hours: $49.40
STATUS: Cup w/handle. Still working laterally over the 10 day EMA (48.88) in a very narrow range on very low volume. This is setting up the next break higher by this strong stock. To recap: LCAV is working laterally this month over the 18 day EMA (48.14), dropping to that level last week as part of the shakeout. It has recovered and is moving laterally in a narrow range below 50 and above the 10 day EMA. Nice 5.5 month base has set up, and it is close to delivering the breakout move. Strong leadership stock.
Volume: 318.398K Avg Volume: 674.272K
BUY POINT: $50.05 Volume=1M Target=$59.95 Stop=$47.65
POSITION: JVQ CJ - Mar. $50c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/lcav.html
Play Date: 12/07/2005
STJ (St. Jude Medical--$51.76; +0.12; optionable): Medical appliances
http://biz.yahoo.com/p/s/stj.html
STATUS: Flying plateau. Nice action last week, moving laterally above the 10 day EMA (51.15) in a nice, tight range and on low volume. Trade jumped up to average Friday but STJ could not resume the breakout move. Looks ready to do just that, however. To recap: Testing the early November breakout from a 14 week double bottom with handle base. Came off of the 50 day EMA (49.27) with a vengeance to start the month. A great set up and ready to continue the breakout.
Volume: 2.208M Avg Volume: 2.032M
BUY POINT: $52.25 Volume=3M Target=$60 Stop=$50.38
POSITION: STJ DJ - Apr. $50c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/stj.html
Play Date: 12/10/2005
TSAI (Transaction Sys Architects--$29.64; +0.47; optionable): Technical and system software
http://biz.yahoo.com/p/t/tsai.html
STATUS: Breakout test. Volume surged Friday as TSAI tested below the 18 day EMA (29.22) on the low and rebounded for a gain, holding this key near support and setting up the breakout for a new all-time high. To recap: Strong break higher to start last week, moving TSAI out of a short but very nice double bottom with handle base. Strong volume accompanied the move, showing the buyers really wanted the stock. Solid 3:1 accumulation shows net buying. In the top 100 stocks in the market in terms of earnings and sales growth.
Volume: 456.308K Avg Volume: 269.498K
BUY POINT: $30.44 Volume=389K Target=$35 Stop=$29.32
POSITION: TOU EF - May $30c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/tsai.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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trade stock
stock split
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