|
|
stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: ADM; CELG; DIOD; WIRE
Wednesday night play results:
CBST: Strong volume as CBST jumped higher.
GRMN: Strong price move but volume lagged. That maybe splitting hairs.
MCHP: Looks ready to make the move.
MRVL: Strong volume as MRVL rallied but faded to hold steady on the session.
New Plays:
Upside:
Play Date: 03/02/2006
BBY (Best Buy--$53.52; -0.46; optionable): Electronics stores
http://biz.yahoo.com/p/b/bby.html
STATUS: Test 18 day EMA. BBY gapped higher in early February on strong sales, moving out of a 6.5 month base in the process. It rallied to 56 then faded the past 2 weeks, coming back to tap the 18 day EMA (52.98) on the Thursday low and rebound for a modest loss. Solid 7 to 5 accumulation in the base (7 up price weeks on rising volume to 5 down price weeks on rising volume) set up the breakout and run higher. Nice low volume test to set the next move higher in the breakout run.
Volume: 3.456M Avg Volume: 5.07M
BUY POINT: $54.15 Volume=6.4M Target=$62.95 Stop=$52.69
POSITION: BBY FK - June $55c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/bby.html
Play Date: 03/02/2006
WFT (Weatherford International--$44.64; +1.50; optionable): Oil and gas service company
http://biz.yahoo.com/p/w/wft.html
STATUS: Reverse head and shoulders. Volume punched up to just above average Tuesday and Thursday as WFT reached lower and recovered and then started the break higher. Strong money flow is leading the way higher as WFT moves for a new all-time high. WFT rallied nicely from its breakout in December and needed a breather. The current 7 week base that formed using the 50 day EMA (41.10) at the 'head', a good place for WFT to find support. Looks ready to make the all-time high.
Volume: 3.571M Avg Volume: 3.539M
BUY POINT: $44.89 Volume=5M Target=$51.95 Stop=$42.64
POSITION: WFT HI - Aug. $45c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/wft.html
Continuing plays ready to move:
Play Date: 02/06/2006
CYMI (Cymer--$46.1; -0.75; optionable): Semiconductor equipment
http://biz.yahoo.com/p/c/cymi.html
After Hours: $46.14
STATUS: Test 50 day EMA. Strong breakout in mid-January sent CYMI to 50. It spent the past four weeks easing back to test that move, holding above the 50 day EMA (43.45) Monday, tapping at it intraday and rebounding. Volume jumped Wednesday as CYMI blasted higher. It took the day off Thursday on lower, below average volume, holding the 10 day EMA at the close. Money flow is leading higher. Ready to continue after this pause. Strong leader in the market.
Volume: 719.271K Avg Volume: 793.087K
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/ci/cymi.html
Play Date: 03/01/2006
MCHP (Microchip--$36.52; +0.42; optionable): Semiconductors
http://biz.yahoo.com/p/m/mchp.html
After Hours: $36.51
STATUS: Test 50 day EMA. A neat little double bottom has formed the past five weeks, using the 50 day EMA (35.18) as support for the second leg made this past week. MCHP bounced Wednesday and continued Thursday with rising though still below average volume. Money flow is leading higher and MCHP looks ready to follow it. To recap: One of the top rated semiconductors making a test of the 50 day EMA 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: 1.297M 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/ci/mchp.html
Play Date: 02/23/2006
VMC (Vulcan Materials--$79.93; -0.12; optionable): Building materials.
http://biz.yahoo.com/p/v/vmc.html
STATUS: Breakout test. Volume popped to average Tuesday and Thursday as VMC bumps its head against the breakout point from its four week lateral move above the 10 day EMA (79.11). Money flow continues to lead higher; expecting VMC to follow it. To recap: VMC shot out of a 16 week cup with handle base to start February and rallied up to 80 on the move. It has moved laterally the past four weeks, bumping into the prior high. These volume bumps indicate accumulation and that tells us it is just about ready to make the continued breakout move.
Volume: 524.9K Avg Volume: 571.475K
BUY POINT: $80.11 Volume=800K Target=$92 Stop=$77.45
POSITION: VMC HP - Aug. $80c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/vmc.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.
|
stock recommendation
stock investment information
|
