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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS: Looking at some energy, medical/health care, financial assistance as techs might be rattled around on Wednesday.
Good movers: ARD; BNT; BOOM; ESLR; GRP
Weekend play results:
BNT: Solid volume as BNT broke higher.
OPWV: Tested the 18 day EMA on the low and rebounded. May be the shakeout that turns it back up.
ARD: Gapped higher and never looked back.
GLG: Strong volume but not ready to continue just yet.
WFR: Nice test of the 10 day EMA again and was holding after hours but had a low late trade.
New Plays:
Upside:
Play Date: 01/17/2006
ARNA (Arena Pharmaceuticals--$16.26; +0.52; optionable): Drugs
http://biz.yahoo.com/p/a/arna.html
After Hours: $16
STATUS: Test 18 day EMA. ARNA gapped out of a 10 week ascending base in mid-December and surged higher. It is testing that move, coming back to the 18 day EMA (15.33) Tuesday and then rebounding for a nice gain on a strong surge of above average volume. Money flow is surging higher and relative strength broke out on the move. Ready to catch some momentum on the way back up. Money is likely to move back into drugs and medical after techs get rattled around on the earnings after the Tuesday close.
Volume: 1.892M Avg Volume: 735.895K
BUY POINT: $16.55 Volume=800K Target=$19.95 Stop=$15.68
POSITION: UGG GC - July $15c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/arna.html
Play Date: 01/17/2006
DGIN (Digital Insight--$35.40; +0.18; optionable): Outsourced online banking applications and services for banks, credit unions, and S&L's.
http://biz.yahoo.com/p/d/dgin.html
STATUS: Test 18 day EMA. A market leader that broke out from a 20 month cup with handle in late October and has been trending higher since. Took a nice breather in December, testing the move and coming back to the 50 day EMA (33.01). Then it took off on the breakout move again, surging on strong volume. This past week it is testing again, holding the 18 day EMA (34.89) Tuesday after an intraday undercut, rebounding on stronger volume. Strong money flow is leading higher and we anticipate DGIN is going to continue higher and follow it. A strong stock will make 4 to 5 bounces up the 18 day EMA after testing the breakout move.
Volume: 354.805K Avg Volume: 476.125K
BUY POINT: $36.25 Volume=700K Target=$42.95 Stop=$34.77
POSITION: UGU EG - May $35c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/dgin.html
Play Date: 01/17/2006
EPEX (Edge Petroleum--$29.18; +1.73; optionable): Independent oil and gas
http://biz.yahoo.com/p/e/epex.html
STATUS: Ascending triangle breakout. Breakout in late August from a 14 month range. It rallied to 28 on the breakout and then fell into the current 14 week base, making higher and higher lows up the 50 day EMA (25.44) below that top at 28. Tuesday volume jumped back above average as EPEX broke out of the pattern. Positive accumulation shows net buying during the base, setting up the breakout and move higher. Solid fundamentals from a top rated stock. Nice break higher and ready to move in on a further breakout move and then we will look at more positions when it makes its first successful test.
Volume: 733.771K Avg Volume: 663.16K
BUY POINT: $29.33 Volume=995K Target=$35.95 Stop=$27.28
POSITION: EBQ FF - June $30c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/epex.html
Continuing play ready to move:
Play Date: 01/10/2006
HCR (Manor Care--$40.79; -0.11; optionable): Long-term care facilities
http://biz.yahoo.com/p/h/hcr.html
STATUS: Ascending triangle. Volume jumped to average Tuesday as HCR tested the 18 day EMA (40.43) on the low and rebounded to hold the 10 day EMA on the close. We anticipate some money moving into the healthcare sector as techs get rattled around on these earnings. Nice 7.5 month base has formed using the 200 day SMA and 50 day EMA (38.05, 39.71) as support.
Volume: 438.3K Avg Volume: 482.664K
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
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
CELG: Tested the 18 day EMA again and held, rebounding for a solid gain on continued above average volume. Looks ready to move again.
COH: Testing the 200 day SMA once again on lower, below average volume.
NVDA: Held the 10 day EMA nicely Tuesday but was down after hours about 50 cents. That keeps it above the 10 day EMA, and if it can hold that again it is in good shape.
STN: Dropped through the 200 day SMA on rising volume. Has to hold 66.
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 recommendation
stock market recommendation
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