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us stock market, stock recommendation
Begin part 3 of 3
NOTE: As of March 1 we will be SENDING our reports from Editor2006@InvestBilling.com (they are currently coming from Editor2005@InvestBilling.com). Please make any adjustments that may be necessary on your end to accept emails from this new email address.
THE PLAYS
Good movers: ATHR; CYMI; EZPW; FORM; FSL; MSTR; NOVL; NSM; NURO; SIRF; TRID
Strong plays:
1) CBST: Volume is jumping as CBST heads toward the breakout.
2) DO: Strong volume as it moves off the 50 day EMA.
3) SLAB: Strong volume as SLAB surges after filling the gap.
4) CYMI: Nice volume as CYMI bounces.
5) RADS: Just needs volume.
NEW PLAYS:
Upside plays:
Play Date: 03/01/2006
CBST (Cubist Pharmaceuticals--$23.73; +1.62; optionable): Drugs
http://biz.yahoo.com/p/c/cbst.html
After Hours: $23.70
STATUS: Flat base. Volume has surged above average the past three sessions as CBST bumps up toward the top of its 14 week lateral pattern. Excellent 5 to 1 accumulation in the base (5 up price weeks on rising volume to 1 down price weeks on rising volume) shows a lot of buying as the stock took a breather, setting up for a 4 year high. Solid move Wednesday and it looks ready to give us that breakout. Relative strength is ready for the breakout as well, always a good sign for the stock.
Volume: 1.295M Avg Volume: 641.143K
BUY POINT: $23.95 Volume=750K Target=$28.75 Stop=$22.88
POSITION: UTU HX - Aug. $22.50c (81 delta) &/or Stock
http://www.investmenthouse.com/ct/cbst.html
Play Date: 03/01/2006
DO (Diamond Offshore--$80.38; +2.99; optionable): Offshore drilling company
http://biz.yahoo.com/p/d/do.html
After Hours: $80.36
STATUS: Double bottom. DO has formed a short 5 week double bottom over the 50 day EMA (76.07), using that as support to set up the pattern. It set up a similar pattern in October and November and then broke higher for a 25 point run. Volume surged Wednesday as DO jumped higher off the 50 day. Looking for a move over the 'hump' in the pattern at 81.08 on strong volume as our entry point.
Volume: 3.317M Avg Volume: 2.642M
BUY POINT: $81.21 Volume=3M Target=$96 Stop=$78.15
POSITION: DO FP - June $80c (51 delta) &/or Stock
http://www.investmenthouse.com/ct/do.html
Play Date: 03/01/2006
MCHP (Microchip--$36.10; +0.90; optionable): Semiconductors
http://biz.yahoo.com/p/m/mchp.html
After Hours: $36.01
STATUS: Test 50 day EMA. One of the top rated semiconductors making a test of the 50 day EMA (35.13) after the mid-January breakout from its 6.5 month base on base pattern. Money flow is running higher ahead of the price as it rebounds. Volume was not rallying with MCHP on Wednesday, something we want to change as it continues higher off this key support. Top rated semiconductor.
Volume: 1.157M Avg Volume: 1.65M
BUY POINT: $36.78 Volume=2.2M Target=$42.95 Stop=$34.89
POSITION: QMT GG - July $35c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/mchp.html
Play Date: 03/01/2006
SLAB (Silicon Labs--$50.31; +2.33; optionable): Semiconductors
http://biz.yahoo.com/p/s/slab.html
After Hours: $50.23
STATUS: Test 50 day EMA. SLAB gapped higher in late January on a strong earnings prognosis. It rallied to 52.50 and then faded back the past 5 weeks to test the move and fill most of the gap. It held mostly near the 18 day EMA (47.31), testing toward the 50 day EMA (44.37) on an intraday basis and then rebounding. Strong money flow continues to lead higher. Accumulation is positive. Volume jumped back above average Wednesday for the first time in three weeks. Looking to move in on a continued move higher on solid volume.
Volume: 1.536M Avg Volume: 1.216M
BUY POINT: $50.76 Volume=1.8M Target=$60.95 Stop=$47.68
POSITION: QFJ GJ - July $50c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/slab.html
CONTINUING PLAYS
Play Date: 02/27/2006
ARTC (Arthrocare--$46.75; +1.58; optionable): Medical appliances
http://biz.yahoo.com/p/a/artc.html
After Hours: $46.69
STATUS: Test breakout. Moved through the buy point Wednesday, but volume faded further below average. Don't like to move in without the volume; solid move so we get some volume and it is still a buy. To recap: ARTC broke out from a 16 week reverse head and shoulders base in early January, then rallied up the 18 day EMA (45.46). A big surge in mid-February on earnings and then a gap lower that saw a furious intraday recovery. Wild action but ARTC then settled down the past week in a tight range on low volume above the 18 day EMA. That held the breakout and settled it down for the next move. Strong money flow is leading higher. After this lateral move it will be ready to continue the breakout run. Waiting for volume to kick back up as ARTC resumes the move.
Volume: 219.958K Avg Volume: 342.643K
BUY POINT: New: $46.95 (orig. $46.34) Volume=500K Target=$53.95 Stop=$45.12
POSITION: ARU FI - June $45c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/artc.html
Play Date: 02/06/2006
CYMI (Cymer--$46.85; +1.87; optionable): Chip equipment
http://biz.yahoo.com/p/c/cymi.html
After Hours: $46.76
STATUS: 50 day EMA test. Volume jumped back above average Wednesday for the first time in two weeks as CYMI rebounded off the 50 day EMA (43.34) after filling the gap higher to start February. A solid leader in the chip sector, and held up well even with the chip equipment downgrades. Ready to move in as it continues higher off this test.
Volume: 962.614K Avg Volume: 779.162K
BUY POINT: $47.12 Volume=1.2M Target=$57.95 Stop=$45.22
POSITION: CQG EH - May $45c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/cymi.html
Play Date: 02/25/2006
RADS (Radian Systems--$14.85; +0.57; optionable): Site operations software for retail, food services businesses.
http://biz.yahoo.com/p/r/rads.html
STATUS: Ascending triangle. Moving toward the buy, rallying Wednesday but without a corresponding jump in volume. Money flow is surging and relative strength is moving toward the breakout. Just looking for more volume to come in as it continues higher. To recap: RADS has formed a short 6 week triangle as it consolidates the January breakout from a 6.5 month base. As the market sold off RADS used the selling to set up for the next move. It has done just that, showing outstanding 7 to 0 accumulation. Strong money flow complements the accumulation. Relative strength is ready to breakout again as well, a sign of continued strength. Strong technically and strong fundamentally as well.
Volume: 253.93K Avg Volume: 334.029K
BUY POINT: $14.89 Volume=496K Target=$17.95 Stop=$13.98
POSITION: QRC GC - July $15c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/rads.html
Play Date: 02/27/2006
SMSI (Smith Micro Software--$8.98; +0.01; no options): Application software
http://biz.yahoo.com/p/s/smsi.html
STATUS: Cup w/handle. Balking some at the next buy point. Strong volume Monday but then fading as SMSI lost some momentum. Still a strong stock ready to move higher. Want to see volume return as it does. To recap: Volume is improving as SMSI starts the move out of a 15 month base. It broke higher in late January on strong trade, then moved laterally the past three weeks on very low, below average volume. Volume jumped last Wednesday as SMSI gapped higher. Strong fundamentals growth and an excellent pattern. Money flow is surging higher ahead of price and relative strength is making the breakout with the stock. SMSI is ready to move higher.
Volume: 190.135K Avg Volume: 235.46K
BUY POINT: $9.29 Volume=300K Target=$11.25 Stop=$8.64
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/smsi.html
Play Date: 02/28/2006
WITS (Witness Systems--$24.31; +0.88; optionable): Contact center worldwide
http://biz.yahoo.com/p/w/wits.html
STATUS: Breakout test. Good move higher Wednesday off of the 18 day EMA (23.36) but no volume going with it. Still looks solid and if it gets a bit more volume it is still a buy. To recap: WITS blasted out of a 16 week flat base to start February, rallying to 24.59 on the high. It peaked out last week and started to faded back this week, heading toward the 18 day EMA Tuesday. It is likely to hit that level and then make its next bounce higher. Excellent 7 to 2 accumulation in the base (7 up price weeks on rising volume to 2 down price weeks on rising volume) shows a lot of buying. Nice breakout to a new 6 year high and this test is re-setting the breakout move for the next leg.
Volume: 242.873K Avg Volume: 416.835K
BUY POINT: New: $24.55 (orig. $23.94) Volume=550K Target=$27.74 Stop=$23.02
POSITION: UPJ FX - June $22.50c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/wits.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
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