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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CKCM; MSTR; RVSN; VSEA
Strong plays:
1) WFT: Nice test from this oil service stock.
2) HAL: And another nice test from a service company
3) CTXS: Very nice test, setting up the next move.
4) LSTR: Ready for some downside.
5) RCCC: Looks as if it has made the final shakeout.
NEW PLAYS:
Upside plays:
Play Date: 01/25/2006
NWRE (Neoware--$27.52; +0.18; optionable): Networking and communication
http://biz.yahoo.com/p/n/nwre.html
STATUS: Flying plateau. NWRE is working laterally in a narrow range over the 18 day EMA (26.45) on below average volume. This move comes after a strong run following a September breakout from a 6 month base. Strong rally up the 18 day EMA. It tested the 50 day EMA (23.89) in December, and this is the second test in the next run. A strong stock will breakout, rally up the 18 day EMA 4 to 5 times, test the 50 day EMA, and then start again. That still gives NWRE plenty of upside if we can get a good breakout from this pattern. Like these plateaus as they show a refusal to give up any gains; that is the sign of a strong stock.
Volume: 473.581K Avg Volume: 588.373K
BUY POINT: $28.65 Volume=883K Target=$35.65 Stop=$26.77
POSITION: QQA FF - June $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/nwre.html
Play Date: 01/25/2006
NXY (Nexen, Inc.--$54.33; -1.28; optionable): Independent oil and gas
http://biz.yahoo.com/p/n/nxy.html
STATUS: Breakout test. NXY broke from a 16 week base to start the month. Very solid pattern that formed using the 50 day EMA (49.20) as support; a key level where the big money supports its favorite stocks and picks up new shares. Coming back to test the move, taping at and holding the 10 day EMA (53.53) on the low. Excellent 6 to 1 accumulation (6 up price weeks on rising volume to 1 down price weeks on rising volume) shows practically all buying. Strong. Looking for it to continue up from this test and that is when we move in.
Volume: 648.2K Avg Volume: 418.814K
BUY POINT: $55.08 Volume=628K Target=$63.95 Stop=$53.22
POSITION: NXY FK - June $55c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/nxy.html
Play Date: 01/25/2006
WFT (Weatherford International--$42.74; -0.94; optionable): Oil and gas service company
http://biz.yahoo.com/p/w/wft.html
After Hours: $43.70
STATUS: Breakout test. WFT is making its second test of the breakout from its 14 week cup with handle base, fading back to the 10 day EMA (42.03), tapping that level on the Wednesday low and rebounding modestly to the close. Energy stocks were generally under pressure Wednesday after a strong move higher, and we like that WFT fell back on continued below average volume. Service companies are the hottest of the group. Looking for WFT to maybe tap at the 10 day EMA once more and then start back up and continue the breakout rally.
Volume: 3.524M Avg Volume: 4.594M
BUY POINT: $43.25 Volume=5.5M Target=$49.95 Stop=$41.89
POSITION: WFT EA - May $42.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/wft.html
New downside play:
Play Date: 01/25/2006
LSTR (Landstar System--$40; -1.18; optionable): Trucking
http://biz.yahoo.com/p/l/lstr.html
STATUS: Put. There is a lot of talk on the financial stations as to how much freight the truckers are carrying, yet LSTR is signaling a slowdown in its business. It formed a broad umbrella top the past 10 weeks, falling through the 50 day EMA (41.35) two week's back. Last week it picked up volume as it moved lower. It rebounded to test the breakout, but showing some big downside volume mixed in to the rebound. Wednesday LSTR tried the 50 day EMA again but rolled over. Looking for it to fall from here after completing the top. A move to the target lands us a 40%ish gain.
Volume: 487.699K Avg Volume: 425.536K
BUY POINT: $39.87 Volume=500K Target=$38.89 Stop=$50.85
POSITION: QRY OH - Mar. $40p (-46 delta)
http://www.investmenthouse.com/ct/lstr.html
New buy points on current positions:
Play Date: 01/25/2006
CTXS (Citrix Systems--$31.28; +0.08; optionable): Internet access infrastructure software
http://biz.yahoo.com/p/c/ctxs.html
After Hours: $31.74
STATUS: Breakout test. CTXS made us a nice gain already this month when it reported strong earnings and shot higher. It has come back to test that move, basically filling the gap as it has come back to rest on the 10 day EMA (30.91). Volume jumped Wednesday as it made the test and showed a hammer doji. Looking for a continuation of the breakout run after this nice test.
Volume: 3.336M Avg Volume: 2.139M
BUY POINT: $31.85 Volume=3M Target=$36.95 Stop=$30.65
POSITION: XSQ FF - June $30c (65 delta) &/or Stock
http://www.investmenthouse.com/ct/ctxs.html
Play Date: 01/25/2006
HAL (Halliburton--$74.24; -1.71; optionable): Oil and gas service company
http://biz.yahoo.com/p/h/hal.html
After Hours: $74.24
STATUS: Breakout test. Best group in the energy sector. HAL broke out last week with a nice gap higher and is coming back this week to test. It tapped at the 10 day EMA (72.54) on the intraday low and then rebounded to recoup some of its losses. May come back a bit further to test the 10 day EMA, and when it does we will catch it again on the way back up. Nice breakout from a 14 week base and this is the first test, one of our favorite entry points.
Volume: 9.974M Avg Volume: 7.17M
BUY POINT: Test 72.50, then $73.55 on the rebound. Volume=10M Target=$84.75 Stop=$72.32
POSITION: HAL GO - July $75c (58 delta) &/or Stock
http://www.investmenthouse.com/ct/hal.html
CONTINUING PLAYS
Play Date: 01/23/2006
BNT (Bentley Pharmaceutical--$19.75; +0.16; no options): Drug delivery
http://biz.yahoo.com/p/b/bnt.html
After Hours: $19.75
STATUS: Cup w/handle. Continuing to set up, calming down some after the swings of the past several sessions on strong trade. Volume much lower as BNT gapped higher and faded a bit. Still holding the pattern and still waiting for the breakout move. Solid stock. To recap: Got a bit rocky on the Friday expiration, but rebounded right back into the handle Monday on excellent volume, showing the buyers were right back in there. Nice little 7 week base has formed using the 50 day EMA (17.43) as support. Solid 3 to 1 accumulation in the base (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows solid buying as BNT sets up for a breakout to a 12 year high. Nice short base to consolidate the November breakout from a 2 year base. A strong base to match its great fundamentals.
Volume: 287.1K Avg Volume: 390.908K
BUY POINT: New: $20.05 (orig. $19.69) Volume=579K Target=$23.65 Stop=$18.35
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/bnt.html
Play Date: 01/21/2006
CRUS (Cirrus Logic--$8.05; -0.08; optionable): Semiconductors
http://biz.yahoo.com/p/c/crus.html
After Hours: $7.80
Earnings: 1-25-06 after the close
STATUS: Breakout test. Announced its earnings, beating the street by a penny but guiding in line. That pushed the stock lower after hours, but no catastrophic tank. Will see if it can reverse and break higher Thursday. If the chips are ready to move these results won't hold it back. We will see. To recap: CRUS broke higher last week on some strong volume then gave back some of the move on Friday as technology and chips sold back with the market. Still holding the breakout from its 21 week base sporting strong 8 to 4 accumulation (8 up price weeks on rising volume to 4 down price weeks on rising volume), showing plenty of buying during the base. CRUS has tapped the 10 day EMA, holding the breakout. Now we look for it to turn back up and follow the strong money flow.
Volume: 635.497K Avg Volume: 796.373K
BUY POINT: $8.39 Volume=1.2M Target=$10.49 Stop=$7.88
POSITION: CUQ FU - June $7.50c (72 delta) &/or Stock
http://www.investmenthouse.com/ct/crus.html
Play Date: 01/21/2006
RCCC (Rural Cellular--$16.96; +0.01; no options): Wireless telecom
http://biz.yahoo.com/p/r/rccc.html
Earnings: Early February
STATUS: Cup w/handle. Nice shakeout Wednesday, testing down below the 18 day EMA (16.49) on the low and then rebounding to hold flat at the 10 day (16.88). Nice shakeout action, and now we see if RCCC is set to show the breakout. To recap: RCCC is working laterally in a tight range, holding the solid January move higher as the 10 day EMA rises to meet it. The move completed its 12 week base that formed using the 50 day EMA (15.29) as support; that shows its supporters stepping in at that level to bolster positions. After a four year slumber, RCCC has awakened. Strong 5 to 2 accumulation in the base shows plenty of buying. Like the way RCCC ignored the market selling, going about its own business Friday. Strong fundamentals to go with the pattern.
Volume: 49.821KAvg Volume: 68.5K
BUY POINT: $17.68 Volume=140K Target=$21.75 Stop=$16.44
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/rccc.html
Play Date: 01/23/2006
ZIGO (Zygo--$16.7; -0.06; optionable): Semiconductor equipment
http://biz.yahoo.com/p/z/zigo.html
Earnings: 1-26-06 after close
STATUS: Breakout test. Earnings are out Thursday, and ZIGO has set up a great pattern ahead of the news, forming a very nice 'second' handle after the breakout two weeks back. Nice low volume this week as it tests back to the 10 day EMA (16.49). Very nice, orderly pullback. Presents a conundrum of sorts. If it shows the move Thursday we can enter, taking a chance on earnings. Or we can wait and see the outcome; if they are great, it gaps out of sight. We can play some positions if it shows the move. If not, we will wait and if there is a breakout on the news we can then play the successful test. To recap: ZIGO broke higher 2 weeks back on strong trade, moving out of a 14 week double bottom base that formed using the 50 day EMA (15.32) on the lows. In the recent selling ZIGO has moved laterally, holding its move, a sign of strength. Outstanding 5 to 0 accumulation shows all buying, setting ZIGO for the move higher.
Volume: 82.348K Avg Volume: 131.448K
BUY POINT: $17.12 Volume=200K Target=$20.68 Stop=$16.21
POSITION: DQB FC - June $15c (69 delta) &/or Stock
http://www.investmenthouse.com/ct/zigo.html
Downside Play:
Play Date: 01/23/2006
PCP (Precision Castparts--$50.21; +0.16; optionable): Steel and iron
http://biz.yahoo.com/p/p/pcp.html
STATUS: Put. Gapped higher Wednesday, up toward the 50 day EMA (50.92), but it could not hold the move. Being patient and going to let it show us the strong downside break to enter the play. To recap: PCP broke out from 12 week cup with handle base to start the year, but volume did not really surge with it; one good session on the initial move but then it died off. Then it rolled over and fell through the 50 day EMA last week. It tapped up at that level last week intraday and but cannot break back through. Money flow is falling ahead of price as PCP turned down. Looking to move in as it continues lower on volume. A move to the target lands us a 39%ish gain.
Volume: 737.6K Avg Volume: 769.76K
BUY POINT: $49.32 Volume=900K Target=$47.75 Stop=$50.22
POSITION: PCP OJ - Mar. $50p (-63 delta)
http://www.investmenthouse.com/ct/pcp.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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us stock market
stock recommendation
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