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stock ticker, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ARD; BRCM; CLE; GRP; HGRD; OVTI; PDC; RADN; SMTL
Monday night play results:
GENZ: Forming a quick handle to the nice little double bottom.
TECH: Took the day off on lower volume. Still looks super.
WSM: Moving toward the breakout but volume is fading. Needs to ramp up.
ALO: After the strong money move it took the day off as well.
New Plays:
Upside:
Play Date: 01/10/2006
BMD (Birch Mountain Resources--$7.24; +0.19; optionable): Gold mining
http://biz.yahoo.com/p/b/bmd.html
STATUS: Test 50 day EMA (6.85). BMD made us some nice money in its fall run higher. After that run up the 18 day EMA (now at 7.24) it needed a breather, and the test of the 50 day is typically where a strong stock will test back to reload and start the next run higher. Volume jumped as it fell through the 50 day last Thursday but then surged even higher Friday as it recovered that key level. Looking for volume to surge again as BMD moves higher off the 50 day and through the 18 day EMA (7.24) where it closed Tuesday.
Volume: 459.5K Avg Volume: 843.102K
BUY POINT: $7.44 Volume=1M Target=$9.35 Stop=$6.95
POSITION: BMD FU - June $7.50c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/bmd.html
Play Date: 01/10/2006
ESLR (Evergreen Solar--$12.25; +1.18; optionable): Development, manufacture, marketing of solar power products
http://biz.yahoo.com/p/e/eslr.html
After Hours: $12.28
STATUS: Test 50 day EMA. Another stock that made us some solid gain in the November run, ESLR has now set up to make us some more. ESLR broke out from a 6 month cup with handle base in September, then really started its move in November, rallying from 8 to 13. After that run it needed a breather and came back to form the current 7 week pattern, something of a skewed double bottom with handle ore reverse head and shoulders. Big jump higher Tuesday on the strongest volume in 2 months, coming off the 50 day EMA (10.88). Positive accumulation in this pullback, and the buyers were obviously back in on Tuesday. Looking to enter on a continued move higher.
Volume: 5.201M Avg Volume: 2.533M
BUY POINT: $12.48 Volume=3M Target=$15.45 Stop=$11.74
POSITION: QLU FV - June $12.50c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/eslr.html
Play Date: 01/10/2006
HCR (Manor Care--$41.25; +0.17; optionable): Long-term care facilities
http://biz.yahoo.com/p/h/hcr.html
STATUS: Ascending triangle. The leader in its sector, and forming a very nice base to match and set the foundation for a breakout to a 7 year high and close to a new all-time high. Nice base that has used the 200 day SMA and of late the 50 day EMA (39.51) to make higher and higher lows. Volume has surged this week as HCR probes at the breakout point. Solid 6 to 4 accumulation in the base has set up the breakout move. Looking for volume to continue as price does the same. Very solid.
Volume: 752.9K Avg Volume: 491.727K
BUY POINT: $41.72 Volume=650K Target=$47.98 Stop=$40.25
POSITION: HCR EH - May $40c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/hcr.html
Continuing ready to move: This time it looks ready.
Play Date: 12/27/2005
EFD (Efunds--$24.15; +0.4; optionable): Business software
http://biz.yahoo.com/p/e/efd.html
STATUS: Cup w/handle. Volume jumped back to average Tuesday as EFD tested the 18 day EMA (23.46) on the low and rebounded to post a nice gain. It has continued to looks strong and now it looks as if it is ready to move.
Volume: 229.7K Avg Volume: 210.439K
BUY POINT: $24.21 Volume=317K Target=$28.95 Stop=$22.72
POSITION: EFD CX - Mar. $22.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/efd.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, NVDA, PSYS, RTSX, STN, UNH
AAPL: Holy cow Batman. Steve Jobs pulled another first, pre-announcing $5.7B in sales for the quarter and 14M iPod sales (11M expected). The stock rallied accordingly. Funny. I watched my new DVD of 'Pirates of Silicon Valley' just yesterday about the beginnings of Apple and Microsoft and how Microsoft won out. They helped launch the computer revolution. Now they are pinning their hopes on music players and game players. The 'revolution' has been placed in the hands of another generation.
COH: Building a neat little double bottom over the 200 day SMA. May be something here. Retail has come back to life.
NVDA: After a strong run it is showing a doji, indicating it may pullback to test this strong move. A test of 40 would be rather typical.
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.
DDD: Diagnostic substances. We have been watching this one as well, a new issue back in late 2002. It just broke out of a large 13 month base in December and is powering higher once again on very strong trade. Has a lot of momentum though it does not have any earnings and that is always something of a risk.
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.
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stock ticker
stock recommendation
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