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Begin part 3 of 3
Corrects buy point and position on MDCC.
THE PLAYS
Good movers: ARNA; BLKB; LIFC; RACK; TRAD; WFR; KMP
Weekend play results:
EFJI: Gapped higher but was giving back the move some. Decided to wait another session.
IVAC: Nice doji at the 18 day EMA
RACK: Strong move higher
REDF: Faded back to the 10 day EMA on low, below average volume
RMBS: Gapped higher on a modest increase in trade to start the play.
New Plays:
Upside:
Play Date: 03/06/2006
ALKS (Alkermes--$25.24; -0.5; optionable): Drug delivery
http://biz.yahoo.com/p/a/alks.html
STATUS: Breakout test. Volume is back below average as ALKS eases back to the 10 day EMA (25.09), testing the strong break higher to end February. ALKS broke from a 7 week cup base, surging on strong trade to a new 3.5 year high. Strong money flow is leading higher. Relative strength broke out on the price move, a good indication the move has some legs. Nice break higher, nice test; now we look for ALKS to deliver the breakout.
Volume: 1.05M Avg Volume: 2.16M
BUY POINT: $26.05 Volume=3M Target=$31.65 Stop=$24.94
POSITION: QAL HE - Aug. $25c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/alks.html
Play Date: 03/06/2006
GME (Gamestop--$40.79; -0.21; optionable): Electronic game stores
http://biz.yahoo.com/p/g/gme.html
STATUS: Breakout test. Holding up well in the selling so taking another look at it. GME is moving laterally along the 18 day EMA (40.51) on very low, below average volume. This is testing the breakout from a 6.5 month trading range. It broke higher in late January and is now testing that move. Strong money flow is leading higher. Strong fundamentals. Volume has yet to start spiking higher, a sign it is ready to make the move. We like, however, how it is holding up as the market fades back, minding its own business. After the market pullback is over it will be ready.
Volume: 570.7K Avg Volume: 1.336M
BUY POINT: $42.11 Volume=2M Target=$49.95 Stop=$39.65
POSITION: GME GH - July $40c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/gme.html
Play Date: 03/06/2006
MDCC (Molecular Devices--$32.08; +0.17; optionable): Bioanalytical measurement systems for drug discovery, etc.
http://biz.yahoo.com/p/m/mdcc.html
STATUS: Breakout test. MDCC surged off the 50 day EMA (29.86) in mid-February, a nice test of key support following the November breakout and run higher up the 18 day EMA (31.60). After a few strong runs up the 18 day EMA after a breakout a stock needs a deeper test to rest and reset the move. It got that and then blasted higher. The past two weeks it is making a nice low volume test of the 18 day EMA. Monday volume was up toward average as MDCC looks ready to continue the move. Strong money flow is leading higher. Relative strength broke out on the February break higher, a strong indication. Strong fundamentals along with the nice technical pattern.
Volume: 176.425K Avg Volume: 203.708K
BUY POINT: $32.65 Volume=300K Target=$38.95 Stop=$31.44
POSITION: MCQ GF - July $30c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/mdcc.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: Continues heading lower on stronger, average volume.
FFIV: Received a downgrade and sold to the 10 day EMA on continued slightly above average volume. Looking for it to hold up after this test and rebound, giving us another entry point on this strong stock.
COH: Second doji in a row on this move higher. Worth taking some option gain off the table.
NVDA: Announced a stock split but after gapping higher it could not hold the move.
PSYS: Bomb bay doors opened and PSYS fell through the 50 day EMA on strong volume (31.82). Needs to recover that level Tuesday.
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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