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stock recommendation, stock investment information
Begin part 3 of 3
We apologize for the tardy delivery this evening. Some pretty serious technical issues were finally resolved.
THE PLAYS
Good movers: LSTR; KMP
Monday night play results:
CMVT: Still ready to make the breakout.
MEDX: Tried to make the move sold back on volume. Like the way it rebounded off the 18 day EMA.
TRAD: Gapped higher but gave it back. We will see.
OVTI: Still tightening up over the 18 day EMA
PSSI: Tested lower and rebounded to hold near the 18 day EMA.
New Plays:
Upside:
Play Date: 02/29/2006
CYBS (Cybersource--$8.36; +0.11; optionable): Risk management software
http://biz.yahoo.com/p/c/cybs.html
After Hours: $8.38
STATUS: Test breakout. CYBS blasted out of a 18 month ascending triangle in late January and rallied to 9. It has spent the past four weeks coming back to test that move, heading back on some lower volume and holding above the 50 day EMA (7.93) as it makes the test. While it comes back money flow continues moving higher. Strong 17 to 10 accumulation in the base set up the breakout. Nice test and ready to continue the move higher. Solid fundamentals to go along with the nice pattern.
Volume: 122.98K Avg Volume: 258.133K
BUY POINT: $8.72 Volume=325K Target=$10.95 Stop=$8.22
POSITION: CXQ GU - July $7.50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/cybs.html
Play Date: 02/28/2006
RNVS (Renvois--$21.66; -0.98; optionable): Biotechnology
http://biz.yahoo.com/p/r/rnvs.html
STATUS: Breakout test. A new issue in early 2004, RNVS just went through its second base, a 9 month cup with handle, breaking out in January. It ran to 21, worked laterally, then surged again to end last week. It is testing the that surge now, coming back to the 10 day EMA (21) in the Tuesday selling, fading on low volume. Looking for it to snug up at the 10 day EMA and then rebound to continue the breakout move, giving us our entry. Solid earnings and sales growth and strong accumulation.
Volume: 320.906K Avg Volume: 307.641K
BUY POINT: $22.12 Volume=461K Target=$26.85 Stop=$20.78
POSITION: JHU GX - July $22.50c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/rnvs.html
Play Date: 02/28/2006
VLTR (Volterra Semiconductor--$17.41; -0.11; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/v/vltr.html
After Hours: $17.38
STATUS: Breakout test. Nice surge to end January took VLTR out of an 8 month cup with handle base. A new issue in July 2004, it is forming up after a peak hit late that year. Positive 7 to 5 accumulation in the base shows plenty of buying and money flow rallies higher even as the stock makes this nice tight pullback to the 18 day EMA (17.18). Not bad action at all from this stock that is in the best sector in the semiconductor sector.
Volume: 318.446K Avg Volume: 337.813K
BUY POINT: $18.11 Volume=507K Target=$21.75 Stop=$16.88
POSITION: QYU FW - June $17.50c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/vltr.html
Downside:
Play Date: 02/28/2006
FRED (Freds Inc.--$13.97; -0.34; optionable): Discount variety stores
http://biz.yahoo.com/p/f/fred.html
STATUS: Put. FRED is in a continuing downtrend. It tried to make the break late in 2005 but peaked out on low volume and fell into this trend lower. It tried the 50 day EMA (14.93) on the high but failed miserably. It slid lower and then broke lower Tuesday as volume broke above average as well. Weak money flow is leading lower. A move to the target lands us a 40%ish gain.
Volume: 481.9K Avg Volume: 395K
BUY POINT: $13.88 Volume=400K Target=$12.85 Stop=$14.18
POSITION: FMU PC - Apr. $15p (-65 delta)
http://www.investmenthouse.com/cd/fred.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: Not good. AAPL is breaking hard to the downside after failing at the 50 day EMA. Can sell some $70 call options on the stock position and see if it can hold 65 support.
GME: Still making a low volume test of 40 at support.
MRVL: Fell through the 50 day EMA on below average volume. Needs to make the hold here.
PSYS: Nice test of the 18 day EMA as volume edges higher.
UNH: Trying to hold the bottom of the range at 54, but the pattern has taken on a head and shoulders shape.
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 investment information
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