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us stock market, trade stock
Begin part 3 of 3
THE PLAYS
Good movers: ATHR; BWNG; CNQR; EZPW; FFIV; GPN; NTES
Weekend play results:
ARO: Held steady on lower volume.
CNQR: Nice move on volume.
NTES: Nice move on volume.
NWRE: Nice move on volume.
FFIV: Nice move on volume.
TALX: Gapped down and dove lower.
New Plays:
Upside:
Play Date: 03/20/2006
GG (Goldcorp--$27.70; -0.25; optionable): Gold mining. Announced earnings on 3-6-06.
BACKGROUND: Last announced a 2:1 split on 2-11-02 at $15.70.
http://biz.yahoo.com/p/g/gg.html
After Hours: $27.66
STATUS: Ascending base. Taking another run at GG after that quick test of the 50 day EMA (25.50) in early March made things kind of wild. It rebounded from that support on strong volume, extending the base to 7 weeks. Testing back the past three sessions, holding the 10 day EMA (27.33) and ready to make a higher low at this level and set up the breakout. Solid 3 to 1 accumulation in the pattern (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying as the stock consolidates. Ready for the breakout to a new all-time high on some volume.
Volume: 2.594M Avg Volume: 3.736M
BUY POINT: $28.32 Volume=5.6M Target=$33.98 Stop=$26.77
POSITION: GG GY - July $27.50c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/gg.html
Play Date: 03/20/2006
GME (Gamestop--$41.40; +0.30; optionable): Electronic game stores
http://biz.yahoo.com/p/g/gme.html
After Hours: $41.90
STATUS: Test 50 day EMA. GME has set up again so taking another look at this leader. Was basing at some support at 40 through early March but then got a case of the dips and crashed below the 50 day EMA (39.26). It was a short sting at that level as GME recovered that support three sessions later on some solid volume. It has drifted up the 10 day EMA (40.28) since, heading back to another showdown with some resistance at 42. Looking for volume jump as it moves through that level. Solid 3 to 1 accumulation in this 7 week consolidation. A market leader and it looks ready to show us a leader-type break higher.
Volume: 684.7K Avg Volume: 1.222M
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/ci/gme.html
Play Date: 03/20/2006
SCSS (Select Comfort--$36.49; -0.02; optionable): Air beds
http://biz.yahoo.com/p/s/scss.html
After Hours: $36.36
STATUS: Ascending base. We played SCSS quite a bit in 2002 when much of the market was in the tank. People were apparently buying beds, however, and SCSS enjoyed a huge run. It then based for over 2 years, exhausted from the run. It needed one of its own beds. It woke up to start February with a gap higher and run from 28 to 37. It stalled there, needing another good comfortable rest. It has formed the current 6 week base, moving laterally over the 18 day EMA (35.71). Strong money flow is leading higher. Volume has dropped off below average the past two weeks. Looking for some stronger trade as SCSS jumps out of bed again and moves through near resistance.
Volume: 505.195K Avg Volume: 686.851K
BUY POINT: $37.48 Volume=1M Target=$43.75 Stop=$35.48
POSITION: QSL IG - Sept. $35c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/scss.html
Downside:
Play Date: 03/20/2006
ADTN (Adtran--$28.57; +0.35; optionable): Telecom equipment
http://biz.yahoo.com/p/a/adtn.html
After Hours: $28.54
STATUS: Put. ADTN gapped sharply lower two weeks back, its second gap down in this trend lower (the first in late January). It rebounded from that gap, working its way back up to the 50 day EMA (28.75) Monday, but on low, below average volume. That shows just a relief move with no real sponsorship. Looking for this test of the gap lower to fail and send ADTN back down. A move to the target lands us a 42%ish gain.
Volume: 770.935K Avg Volume: 1.213M
BUY POINT: $28.35 Volume=1.2M Target=$26.05 Stop=$28.82
POSITION: RQA QF - May $30p (-54 delta)
http://www.investmenthouse.com/ci/adtn.html
Continuing ready to move:
Play Date: 03/13/2006
BKHM (Bookham Technology--$8.33; +0.19; optionable): Optical components, subsystems for communications networks
http://biz.yahoo.com/p/b/bkhm.html
After Hours: $8.30
STATUS: Breakout test. The stocks in this category have been popping like fireworks of late, and BKHM looks ready. It tested the 18 day EMA (8.03) on the low and rebounded for a solid price gain. Volume was still very low, however; need to see that higher as BKHM continues. To recap: BKHM broke higher from its most recent base in two weeks back, rallying hard and then fading to test, coming back to the 18 day EMA on mostly lower trade. It had made a series of bases starting last fall, and continues to perform. Solid fundamentals to go with the price moves. Really improving its sales and earnings and the price is starting to show the appreciation.
Volume: 895.579K Avg Volume: 1.898M
BUY POINT: $8.68 Volume=2.3M Target=$10.72 Stop=$8.11
POSITION: BFQ GU - July $7.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/bkhm.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.
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