stock recommendation, stock investment information

Begin part 3 of 3

THE PLAYS

Good movers: AH; BBY; BGC; CHRW; CX; CYMI; MDCC; MGI; TOMO

Tuesday night play results:
HAL: Nice surge
LEH: Toyed around with breaking higher but volume not there. Still looks ready.
THQI: Nice additional work on the handle on low volume.
RMBS: Starting the rebound off the 10 day EMA.

New Plays:

Upside:

Play Date: 04/05/2006
BRCM (Broadcom--$46.05; +1.65; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $46.10
STATUS: Test 50 day EMA (43.43). Gave us a hell of a ride in January when it raced higher into earnings and then announced huge earnings and a split. It has spent the past 9 weeks working off that excess, coming back to the 50 day EMA last week, undercutting but then recovering. Volume jumped Monday as BRCM did the same off the 50 day. Ready to cross some resistance at 46. Want to see some big volume as it does. Money flow has turned sharply higher and is running higher ahead of price. Looks ready for the move. Again, want to see it strong when it comes.
Volume: 15.89M Avg Volume: 16.824M
BUY POINT: $46.55 Volume=17M Target=$54.55 Stop=$44.32
POSITION: RBF HX - Aug. $46.625c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.html

Play Date: 04/05/2006
RDC (Rowan Co.--$44.58; +1.12; optionable): Oil and gas drilling
http://biz.yahoo.com/p/r/rdc.html
STATUS: Reverse head and shoulders. This 10 week base that formed roughly along the 50 day EMA (41.58) has consolidated the nice break higher to start the year as RDC moved out of the same pattern type it is now putting the finishing touches on. Positive accumulation and solid fundamentals setting it up for a breakout to a new all-time high.
Volume: 2.077M Avg Volume: 2.568M
BUY POINT: $44.95 Volume=2.5M Target=$51.99 Stop=$42.65
POSITION: RDC JI - Oct. $45c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/rdc.html

Play Date: 04/05/2006
SNDK (Sandisk--$62.42; +5.51; optionable): Semiconductor memory chips
http://biz.yahoo.com/p/s/sndk.html
After Hours: $62.63
STATUS: Cup. After two strong runs in the second half of 2005, SNDK fell hard into the current 12 week cup base. It has recovered the 50 day EMA (58.64) and Wednesday gapped higher on strong volume, starting to rebound and form the right side of its base. Accumulation is already positive, a good indication as it continues to work on the base. The beauty is, SNDK can rebound and form its base and not have to hit a new high to give us our target.
Volume: 19.371M Avg Volume: 12.665M
BUY POINT: $62.78 Volume=13M Target=$75.00 Stop=$50.68
POSITION: SWF GZ - July $62.50c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/sndk.html

Play Date: 04/05/2006
STX (Seagate Tech Holdings--$27.25; -0.44; optionable): Data storage
http://biz.yahoo.com/p/s/stx.html
STATUS: Cup w/handle. Very strong run to finish 2005 and carry STX into the new year. It had to take a breather and peaked out to start March, falling into the current 5 week base, using the 50 day EMA (24.96) as support. Seems it needed a breather, but the big money did not want to let it fall too far, using that key support as a level to accumulate more shares. Strong gap higher Tuesday on strong volume and a modest fade Wednesday on lower but still strong trade. May take a couple more sessions to finish the handle, but ready to move in as STX continues higher as it is strong. Excellent 5 to 1 accumulation from late January when STX basically started its lateral move. That tells us there are still lots of buyers moving into the stock even as it consolidates. Ready to move in as STX continues higher.
Volume: 14.192M Avg Volume: 7.906M
BUY POINT: $27.78 Volume=8M Target=$33.35 Stop=$26.00
POSITION: STX IE - Sept. $25c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/stx.html

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

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