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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: NUAN; PARL; SONO
Tuesday night play results:
ADM: Took the day off.
KNOT: Tested the 18 day EMA on the low and rebounded some. Good test.
SWN: Gapped lower, not giving us much chance to make the play.
ANN: Volume started higher but not enough yet.
New Plays:
Upside:
Play Date: 02/22/2006
LIFC (Lifecell--$22.45; +0.9; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
After Hours: $22.49
STATUS: Ascending base. Volume surged above average for the first time in three weeks Wednesday as LIFC put some pop into its move off the 50 day EMA (20.79). Struggled some in early February as it worked on its 24 week base, but fought through it and has set up for the breakout to a new all-time high. Top rated stock in fundamentals, nice technical pattern. Our entry point is when it clears the January and February highs (23.16) on continued strong volume.
Volume: 1.326M Avg Volume: 698.281K
BUY POINT: $23.25 Volume=1M Target=$27.95 Stop=$21.95
POSITION: QKL FX - June $22.50c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/lifc.html
Play Date: 02/22/2006
MSCC (Microsemi--$30.68; +0.4; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mscc.html
After Hours: $30.66
STATUS: Ascending base. Once again this sector of semiconductors held up best as the chip sector sold back. MSCC tested its 50 day EMA (29.29) last week as part of its 12 week base. Excellent 4 to 1 accumulation in the pattern shows plenty of buying, setting up the breakout move. Very solid and great fundamentals to go with the pattern. A breakout takes MSCC to a new all-time high.
Volume: 658.727K Avg Volume: 838.636K
BUY POINT: $31.35 Volume=1.3M Target=$37.65 Stop=$30.04
POSITION: QMS FF - June $30c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/mscc.html
Continuing plays ready to move:
Play Date: 02/11/2006
COH (Coach--$36.6; +0.51; optionable): Handbags, etc.
http://biz.yahoo.com/p/c/coh.html
After Hours: $36.54
STATUS: Ascending triangle. Ready to make the breakout from its 8 month base that formed making higher lows up the 200 day SMA (33.25). Volume has started to kick up the past two weeks as COH moves to the pattern high. Strong money flow is leading, and we are looking for price to follow. Volume was not quite there Wednesday.
Volume: 2.097M Avg Volume: 2.732M
BUY POINT: $36.88 Volume=4.1M Target=$42.95 Stop=$35.15
POSITION: COH EG - May $35c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/coh.html
Play Date: 02/18/2006
MCHP (Microchip--$36.62; +0.22; optionable): Semiconductors
http://biz.yahoo.com/p/m/mchp.html
STATUS: Test 18 day EMA. Nice volume surge Wednesday as MCHP tested below the 18 day EMA (36.28) once more and recovered to post a gain. That is a good reversal, and it sets it for the continuation of the January breakout. Looking for volume to continue as MCHP moves through the buy point. One of those strong semiconductors that did not sell off in the recent weakness. To recap: Broke out from a base on base pattern in mid-January and rallied to 38. It spent February testing back, but held the 18 day EMA on low volume. Excellent strength in a weak market, and this reversal sets it up for the continued breakout move.
Volume: 2.199M Avg Volume: 1.684M
BUY POINT: $37.11 Volume=2.1M Target=$43.44 Stop=$36.11
POSITION: QMT GG - July $35c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/mchp.html
Downside:
Play Date: 02/14/2006
KMP (Kinder Morgan Energy Partners--$47.94; -0.05; optionable): Oil and gas properties
http://biz.yahoo.com/p/k/kmp.html
STATUS: Put. Three dojis below the 18 day EMA (48.17) the pat three sessions, Wednesday showing a hanging man doji. Money flow continues lower ahead of price, and we are looking for the breakdown on the inventory data after a rise into the number.
Volume: 307K Avg Volume: 328.784K
BUY POINT: $47.71 Volume=335K Target=$46.25 Stop=$48.25
POSITION: KMP OW - Mar. $47.50p (-54 delta)
http://www.investmenthouse.com/cd/kmp.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, BRCM, CELG, COH, FFIV, GME, MRVL, NVDA, PSYS, UNH
AAPL: Stronger volume as it reversed the Tuesday higher volume selling with an above average volume move through the 50 day EMA. Probably a good place to buy back the calls and see what happens from here. Resistance at 75.
BRCM: Split today and reached way down before rebounding for a nice gain. Not bad action but it needs to follow through and continued higher after this reversal.
CELG: Starting higher. Could use a bit more volume.
MRVL: Not a bad rebound off the 50 day EMA on some solid trade. Trying to recover but has to break up this head and shoulders attempting to form. Has to move through 67.50 to do it.
NVDA: Stopped the reversal at the 18 day EMA on the low and bounced back.
UNH: May be some life here at support at 58.
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 split
stock recommendation
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