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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: BLKB; CYBS; DRIV; LPSN; NUAN; NWRE; NVDA; RADN; STLD
Weekend play results:
ARG: Nice low volume test back toward the 10 day EMA.
GYMB: Nice lateral move on low volume continues in a very tight range.
BLKB: Blasting higher on strong volume.
DRIV: Gapped higher on rising but still below average volume
FNSR: Nice tight doji as it works laterally.
FSL: Nice test of the 10 day EMA on low volume.
PLMD: Low volume fade to the 10 day EMA. Nice shakeout in the handle.
New Plays:
Upside:
Play Date: 03/27/2006
DBRN (Dress Barn--$47.18; +0.14; optionable): Apparel stores. Splits 2:1 on 4-3-06
http://biz.yahoo.com/p/d/dbrn.html
STATUS: Test breakout. Strong volume last Tuesday took DBRN out of a 7 week double bottom base that used the 50 day EMA (43.18) to start March as the support for the second leg in the pattern. It spent the past three sessions consolidating with the market, moving laterally as the 10 day EMA (46.26) rises to meet it. A couple of tight dojis the past two sessions with volume ticking higher and back above average Monday as DBRN posted a modest gain. Excellent 4 to 1 accumulation is setting DBRN up for a new all-time high. Nice. Top rated fundamentals to go with the pattern.
Volume: 722.067K Avg Volume: 731.315K
BUY POINT: $48.11 Volume=1.1M Target=$57.75 Stop=$45.89
POSITION: DTQ II - Sept. $45c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/dbrn.html
Play Date: 03/27/2006
FCX (Freeport McMoran--$56.19; +2.5; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
After Hours: $56.27
STATUS: Reverse head and shoulders. Volume surged Monday as FCX broke higher out of a 7 week base that formed as the bottom of an 8 week cup base. It used the 200 day SMA (48.37) as support on the 'head' of its base. It gapped higher through the 50 day EMA (53.71) Monday, showing the best volume in three weeks. Like the play as it can give us a nice gain without having to race into new high territory.
Volume: 4.666M Avg Volume: 3.58M
BUY POINT: $56.89 Volume=4.2M Target=$65 Stop=$54.89
POSITION: FCX HK - Aug. $55c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/fcx.html
Play Date: 03/27/2006
RMD (Resmed--$43.31; -0.24; optionable): Medical appliances
http://biz.yahoo.com/p/r/rmd.html
STATUS: Test breakout. RMD broke out from a 17 week base last week, surging on huge trade. It peaked out near 45 and then came back the past three session on lower and lower volume. Monday it came back on the low to test the February high (43) and rebounded. After this test it is ready for the rebound that takes it to a new all-time high. Outstanding 8 to 2 accumulation in the base (8 up price weeks on rising volume to 2 down price weeks on rising volume) shows heavy buying along with the strong buying. May come on back to the 10 day EMA (42.52) before rebounding and continuing the breakout, but it is strong and we want to be ready to move in if it moves higher from here.
Volume: 267.4K Avg Volume: 508.016K
BUY POINT: $43.88 Volume=600K Target=$50.95 Stop=$42.21
POSITION: RMD GH - July $40c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/rmd.html
Play Date: 03/27/2006
SCHW (Charles Schwab--$17.42; +0.03; optionable): Brokerage services
http://biz.yahoo.com/p/s/schw.html
After Hours: $17.40
STATUS: Breakout test. SCHW gapped higher two weeks back, breaking out of an 18 week ascending base. It moved laterally for three weeks before making that strong move, using the strong money flow to its advantage. Nice test this past week, coming back to the 10 day EMA (17.32) and filling most of the gap higher. That is setting up the next break higher to continue the nice breakout to the 4 year high.
Volume: 3.664M Avg Volume: 7.383M
BUY POINT: $17.72 Volume=8M Target=$21 Stop=$16.89
POSITION: SHQ IW - Sept. $17.50c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/schw.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: Getting punched out again, still selling below the 10 day EMA (62.24) but not much more room to go as it has dropped close to the 200 day SMA (57.95).
BRCM: Doji at the 50 day EMA (43.21). Still $3 of the gap to fill but likely to try a bounce from here first.
COH: Slipped through the 50 day EMA on low volume but still holding its 8 week range.
GME: Rallied well, now showing a big doji, closing well off the high. Likely to fade back some here, but a nice move.
MRVL: Has rallied back to the 18 day EMA. Better volume to start, then lower volume the past two sessions as it hit the 18 day. Not much strength right here.
NVDA: Super move higher once more. Volume slowed but still above average as NVDA gives us a nice pre-split move.
UNH: Volume jacked back up as UNH gapped lower and sold off hard again.
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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