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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Monday night play results:
ANN: Moved a bit off the 18 day EMA but no volume.
BLKB: Volume backed off further as BLKB toyed with the breakout.
NDE: Bounced back from the brink for now.
OVTI: No volume as it sat on the 10 day EMA
EPIC: Sold further but rebounded.
TYC: Still working laterally below the 10 day EMA.
New Plays:
Upside:
Play Date: 02/14/2006
IWM (Ishares Russell 2000--$71.53; +0.82; optionable): Russell 2000 ETF (small caps)
http://biz.yahoo.com/p/i/iwm.html
After Hours: $71.51
STATUS: Test 50 day EMA. IWM came back to test the 50 day EMA (69.90) this month after a strong run, moving lower the past week on lower and lower volume. Tuesday it tapped at the 50 day EMA for the third session on the low and then rebounded on the strongest volume since the start of the month. It broke out from a 20 week base to start the year, and this is the first test of that move. Looking to play options on this move as that gives us good leverage. A move to the target makes us a 60%ish move.
Volume: 46.126M Avg Volume: 28.861M
BUY POINT: $71.83 Volume=32M Target=$75.35 Stop=$69.77
POSITION: DIW ES - May $71c (61 delta)
http://www.investmenthouse.com/cd/iwm.html
Play Date: 02/14/2006
GS (Goldman Sachs--$141.78; +2.13; optionable): Investment brokerage
http://biz.yahoo.com/p/g/gs.html
After Hours: $141.78
STATUS: Test 18 day EMA. Strong breakout in late January from an 8 week cup with handle base and rallied to 144 on the high. It has come back to test the move, holding the 18 day EMA (138.94) on the intraday lows the past three sessions. Volume started higher Tuesday as it tested and rebounded for a nice gain. The financials are looking good, apparently not concerned regarding the Fed. Ready to move in on a continued volume move higher.
Volume: 3.003M Avg Volume: 3.431M
BUY POINT: $142.55 Volume=4.4M Target=$154.95 Stop=$138.75
POSITION: GS GH - July $140c (58 delta)
http://www.investmenthouse.com/cd/gs.html
Downside:
Play Date: 02/14/2006
KMP (Kinder Morgan Energy Partners--$47.12; -0.47; optionable): Oil and gas pipelines
http://biz.yahoo.com/p/k/kmp.html
STATUS: Put. KMP peaked in August, moved in a range and then fell hard through the 200 day SMA (50.36). It worked in a lateral range from 48 to 50 through the end of January, tried to bottom and move higher in early February, but Tuesday it tanked through the bottom of the range on a strong shot of volume. Money flow is diving lower and KMP is ready to make another serious drop. Our initial target is not much lower; we can get a nice 43% gain on that move. If it continues lower we will let it work for us.
Volume: 695.6K Avg Volume: 334.546K
BUY POINT: $46.95 Volume=335K Target=$45.92 Stop=$47.21
POSITION: KMP OW - Mar. $47.50p (-54 delta)
http://www.investmenthouse.com/cd/kmp.html
New buy points on current positions:
Play Date: 02/14/2006
WFR (Memc Electronic--$30.78; +0.26; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/w/wfr.html
After Hours: $30.90
STATUS: Flying plateau. Another strong leader that rallied in January, breaking out from a 13 week cup with handle base. It moved higher to start February as the overall market sold, then slipped into the current 1.5 week lateral move. The 10 day EMA (29.88) has now come up to meet the stock, and volume jumped Tuesday as it remained in the tight range. That indicates it is ready to make the move higher. Looking for the break higher on continued strong volume. Solid.
Volume: 4.234M Avg Volume: 2.74M
BUY POINT: $31.12 Volume=3.2M Target=$36.97 Stop=$29.76
POSITION: WFR GF - July $30c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/wfr.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.
Need some replacements for the portfolio for AAPL, BR, RTSX. Send in your ideas for leaders that you want to see in the portfolio.
AAPL, CELG, BR, COH, NVDA, PSYS, RTSX, STN, UNH
COH: Stronger, above average volume as COH continues off the Monday 50 day EMA test.
Play Date: 02/06/2006
NVDA (Nvidia--$44.13; +0.08; optionable): Semiconductors for game applications, etc.
http://biz.yahoo.com/p/n/nvda.html
After Hours: $44.10
STATUS: Test 18 day EMA. NVDA continues the lateral move over the 18 day EMA (43.92), working laterally the past two weeks as it consolidates the strong January breakout and run. Nice low volume on the move, setting up the next run. Want to see volume jump as it moves through the buy point and to a new 4 year high.
Volume: 2.94M Avg Volume: 3.689M
BUY POINT: $45.78 Volume=6.1M Target=$53.95 Stop=$43.65
POSITION: UVA FI - June $45c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/nvda.html
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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us stock market
stock recommendation
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