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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ABAX; CNI; CTXS; MER; MINI; PARL; TKC; TRID
Wednesday night play results:
INFA: Modest gain on continued below average volume.
KOMG: Moving but it needs more volume as well.
TKC: Nice surge
USPI: Fell back to the 10 day EMA on rising volume. Holding the pattern.
New Plays:
Upside:
Play Date: 02/16/2006
CELG (Celgene--$70.41; +0.74; optionable): Drugs. Splits 2:1 on 2-27-06
http://biz.yahoo.com/p/c/celg.html
After Hours: $70.50
STATUS: Test 18 day EMA. Has formed something of a short 7 week cup with handle over the 18 day EMA (69.21) following a high volume surge in late December and early January. Very, very quiet trade the past three weeks as it formed the handle. Money flow remains strong. It has simply gone about its business during all of the chop and selling, forming this base. All of this quiet action is leading up to a break higher toward the split.
Volume: 1.565M Avg Volume: 2.356M
BUY POINT: $70.88 Volume=3M Target=$71 Stop=$68.89
POSITION: LQH GN - July $70c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/celg.html
Play Date: 02/16/2006
LUK (Leucadia National--$52.44; +0.44; optionable): Telecom services, healthcare services, real estate, wineries
http://biz.yahoo.com/p/l/luk.html
STATUS: 18 day EMA test. A jack of all trades, LUK broke out from a big 10 month base in November, and then formed an 8 week cup with handle that broke out in late January. It rallied to 54 on that move and has faded back tot eh 18 day EMA (52) to test the breakout during the market selling. Nice volume Thursday as it held the 18 day and then rallied. Looking for it to clear the 10 day EMA (52.50) on strong volume to start the play.
Volume: 466.9K Avg Volume: 271.275K
BUY POINT: $52.69 Volume=350K Target=$59.75 Stop=$51.75
POSITION: LUK FJ - June $50c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/luk.html
Play Date: 02/16/2006
MRGE (Merge Technologies--$27.03; +0.65; optionable): Healthcare information
http://biz.yahoo.com/p/m/mrge.html
STATUS: Double bottom w/handle. Strong volume jump Thursday after lying dormant for 8 weeks as MRGE moves toward the breakout from its 10 week base. Solid 3 to 0 accumulation (3 up price weeks on rising volume to 0 down price weeks on rising volume) shows solid buying to set up the breakout. Formed over the 50 day EMA (25.72), an important support level. Ready for a new all-time high.
Volume: 702.656K Avg Volume: 519.55K
BUY POINT: $27.58 Volume=750K Target=$33 Stop=$25.95
POSITION: MQP FE - June $25c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/mrge.html
Play Date: 02/16/2006
QLGC (Qlogic--$39.95; +1.27; optionable): Semiconductor and board level I/O products. Splits 2:1 on 3-3-06
http://biz.yahoo.com/p/q/qlgc.html
After Hours: $39.92
STATUS: Test 18 day EMA. QLGC broke out from a 12 month double bottom base in mid-January and ran higher through last week. It got the dips and then tumbled this week, falling below the 18 day EMA (39.30) Wednesday. It turned right back up Thursday, retaking that level on lower but still strong, above average volume. Strong money flow is leading higher, and we are looking for QLGC to hold this near support and resume the rally.
Volume: 3.005M Avg Volume: 1.819M
BUY POINT: $40.25 Volume=2.2M Target=$46.35 Stop=$38.95
POSITION: QLC GH - July $40c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/qlgc.html
Good Investing!
Jon L. Johnson and your IH Alerts 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
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