trade stock, stock split

Begin part 3 of 3

THE PLAYS

Good movers: ASEI; CTXS; LUK; PALM; TOMO; VIVO; VTIV; ADTN

Thursday night play results:
BHE: Still a nice, quiet lateral move heading into the split.
BTU: Took a breather, still on low, below average volume.
PALM: Soaring higher on solid trade.
JBLU: Bounced up to the 18 day EMA, its recent resistance.

New Plays:

Upside:

Play Date: 04/01/2006
CX (Cemex SA--$65.28; +0.53; optionable): Cement. Forecast to announce a split 4-28-06.
BACKGROUND: No splits in CX' history but the pack it runs with is announcing splits and it has hit the range.
http://biz.yahoo.com/p/c/cx.html
STATUS: Double bottom w/handle. Good breakout in November and run higher to 67. Then CX fell into the current 9 week base formed around the 50 day EMA (62.55). Solid 3 to 1 accumulation in the base (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows net buying along with the strong money flow jumping higher. Strong fundamentals growth and a strong technical pattern. Tested the 50 day EMA on the recent low, forming the handle, the last shakeout of the sellers. Nice pattern to consolidate and set up the next move to a new all-time high. Looking for a resumption of the upside volume as CX moves through the buy point.
Volume: 1.251M Avg Volume: 1.827M
BUY POINT: $66.25 Volume=2.7M Target=$76.00 Stop=$63.75
POSITION: CX GM - July $65c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/cx.html

Play Date: 04/01/2006
DTAS (Digitas Inc.--$14.40; +0.21; optionable): Global marketing services
http://biz.yahoo.com/p/d/dtas.html
After Hours: $14.38
STATUS: Ascending base. DTAS has set up the current 12 week base over the 50 day EMA (13.67), making higher and higher lows up that key support level while finding resistance at 14.50. Those higher lows pushing up against that lid build pressure for a strong breakout. Excellent 6 to 2 accumulation in the base shows plenty of strong buying that is setting up the breakout move. Strong fundamentals growth and a solid pattern with relative strength ready to breakout as well, a good corroboration of the price move.
Volume: 457.146K Avg Volume: 899.516K
BUY POINT: $14.88 Volume=1.3M Target=$17.95 Stop=$13.88
POSITION: DQB IC - Sept. $15c (49 delta) or DQB IV - Sept. $12.50c (73 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/dtas.html

Play Date: 04/01/2006
GRMN (Garmin Ltd.--$79.43; +0.42; optionable): GPS devices. Forecast to announce a split 5-3-06.
BACKGROUND: No splits in GRMN's history.
http://biz.yahoo.com/p/g/grmn.html
After Hours: $79.44
STATUS: Breakout test. We said we would look at GRMN again when it came back to make the test, and Thursday it tapped the 18 day EMA (78.24) on the low and rebounded to recoup some losses. Friday it gapped to that level but then posted a modest gain. This is GRMN's first test of the early March breakout from its 5 month ascending base. Nice pattern that made a series of higher lows along the 200 day SMA (first part of the pattern) and the 50 day EMA (72.59) in the latter part. Strong 9 to 4 accumulation in the base set up the breakout and run higher. Looking for a continued bounce on solid trade to start the play.
Volume: 1.433M Avg Volume: 1.266M
BUY POINT: $80.88 Volume=2M Target=$95.00 Stop=$77.79
POSITION: GQR GP - July $80c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/grmn.html

Play Date: 04/01/2006
INFA (Informatica--$15.55; -0.35; optionable): Enterprise data integration software.
http://biz.yahoo.com/p/i/infa.html
STATUS: Double bottom w/handle. INFA has set up a short but nice base the past five weeks, using the 50 day EMA (14.73) as support for the two legs. Nice low volume test the last three days of last week, working as the shakeout of the last sellers before it breaks higher to a new 4 year high. This is the first base since the January breakout from a long 2 year cup with handle base, weeding out the profit takers from that first move. Solid 3 to 1 accumulation in the pattern shows net buying during the consolidation and shakeout, and that indicates it is going to make a solid move on the next breakout.
Volume: 1.197M Avg Volume: 2.268M
BUY POINT: $16.25 Volume=3.4M Target=$19.55 Stop=$15.21
POSITION: UYF AC - Sept. $15c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/infa.html

Play Date: 04/01/2006
IOTN (Ionatron--$13.51; 0.00; optionable): Directed energy weapon technology products for the US government (man-made lightening).
http://biz.yahoo.com/p/i/iotn.html
After Hours: $13.51
STATUS: Flying plateau. This is the first consolidation of IOTN's strong February breakout from a 5 month flat base that formed at the 50 day EMA (12.07). Nice three week lateral move over the 10 and 18 day EMA (13.09) is setting up the next break higher. Strong volume spikes during the move show strong buying setting up the next break higher. Nice test of the 18 day EMA on the Thursday low and a rebound. Another test Friday and a rebound. Very strong volume both sessions. Looking for that volume to carry IOTN out of this lateral consolidation as IOTN follows the money flow higher and relative strength gives us a breakout as well.
Volume: 1.699M Avg Volume: 597.039K
BUY POINT: $14.21 Volume=896K Target=$17.32 Stop=$13.38
POSITION: QVM JV - Oct. $12.50c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/iotn.html

Play Date: 04/01/2006
RIMM (Research in Motion--$84.88; -0.12; optionable): Blackberry communications devices. Forecast to announce a split 4-6-06.
BACKGROUND: Last announced a 2:1 split 4-7-04 at $108.
http://biz.yahoo.com/p/r/rimm.html
After Hours: $84.00
STATUS: Test breakout. Might be a bit early on RIMM, but with its patent suit settlement it will be ready to put on some positive news for its shareholders, and a split is a good way to do that. RIMM is testing back to the 18 day EMA (82.80) the past two weeks, consolidating its two good moves this month as its patent infringement case came to a resolution. The move took it out of a 6 month cup base that was part of a larger 16 month base showing strong 18 to 11 accumulation. Nice test below a new all-time closing high, setting up the next run higher. Strong money flow continues to run higher ahead of price.
Volume: 3.233M Avg Volume: 5.674M
BUY POINT: $86.88 Volume=8.5M Target=$99.95 Stop=$82.42
POSITION: GQR JQ - Oct. $85c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/rimm.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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trade stock
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