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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: AMX; ANN; CTXS; CYMI; DXPE; GRMN; LRCX; MFLX; NUAN
Tuesday night play results:
BID: Volume tailed off as it moved modestly higher.
DO: Right back down as energy sold, but on lower volume, bouncing off near support on the low
POT: Gapped higher, tested, and rebounded into the close.
WEBM: Tried to run but gave it back. Still holding the 10 day EMA
AB: Edged a bit lower but volume was low and it recouped most of the loss for the session.
New Plays:
Upside:
Play Date: 05/03/2006
ABI (Applera Corp-Appliaed Biosystems--$28.87; +0.30; optionable): Software products for genomics research, etc.
http://biz.yahoo.com/p/a/abi.html
STATUS: Cup w/handle. Solid volume the past week as ABI jumped higher to form the right side of its base, a 12 week pattern formed around the 50 day EMA (27.64) and setting ABI up for a 5 year high. Money flow is running higher ahead of price and with the volume of late the price looks ready to follow. Strong trade Wednesday as it tapped at the breakout again. Strong earnings rallied it higher and looks ready to move.
Volume: 2.12M Avg Volume: 996.864K
BUY POINT: $29.25 Volume=1.5M Target=$34.95 Stop=$27.75
POSITION: ABI IF - Sept. $30c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/abi.html
Play Date: 05/03/2006
AEIS (Advanced Energy--$16.07; +0.97; optionable): Power supplies, RF instrumentation, etc.
http://biz.yahoo.com/p/a/aeis.html
STATUS: Cup w/handle. Strong earnings in late April jumped volume as AEIS hung onto its base. It faded this week to the 50 day EMA (14.78), completing its handle. Volume surged Wednesday as AEIS jumped higher off that support, ready to show us the breakout from its 12 week base sporting excellent 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price weeks on rising volume). Strong money flow. Looking for more strong volume as AEIS continues higher and shows us the breakout.
Volume: 1.122M Avg Volume: 613K
BUY POINT: $16.32 Volume=800K Target=$19.58 Stop=$15.18
POSITION: OEQ JC - Oct. $15c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/aeis.html
Play Date: 05/03/2006
RNWK (Realnetworks--$10.17; +0.12; optionable): Internet viewers, etc.
http://biz.yahoo.com/p/r/rnwk.html
After Hours: $10.09
STATUS: Breakout test. Solid breakout to start April as RNWK moved out of a 16 week saucer with handle base formed right along the 50 day EMA (9.20). Nice rally from 8.50 to 10.50 and then a pullback to test, coming back to tap and hold the 18 day EMA (9.93) the past two weeks. Strong 6 to 3 accumulation in the base to go along with solid money flow. Solid fundamentals as well. Nice test and looks ready to continue the breakout run.
Volume: 2.376M Avg Volume: 2.36M
BUY POINT: $10.47 Volume=300K Target=$12.65 Stop=$9.88
POSITION: QRN HB - Aug. $10c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/rnwk.html
Play Date: 05/03/2006
SOX (Philly Semiconductor Index--$520.06; +6.35; optionable)
http://biz.yahoo.com/p/s/^sox.html
STATUS: Test 50 day EMA. SOX is making a higher low at the 50 day EMA (513.71), working on a 13 week base that started in late January. Double bottomed in March, made a higher low in mid-April, and now making another at the 50 day. Ready to move in as it continues its move. Aggressive play but lots of semis showing better action.
BUY POINT: $520.65 Target=$550.00 Stop=$513.50
POSITION: SJX FD - June $520c (54 delta)
http://www.investmenthouse.com/ci/sox.html
Downside:
Play Date: 05/03/2006
LM (Legg Mason--$114.82; -1.48; optionable): Investment brokerage
http://biz.yahoo.com/p/l/lm.html
STATUS: Put. LM was working on a 9 week base through late April, coming down for a double bottom over the 200 day SMA (117.99), but didn't know when to stop and put in the second bottom. It plunged through the 200 day on Monday and made a half-hearted rebound effort Tuesday. Wednesday it turned lower again though volume trailed off to below average. Looking for it to continue lower back toward the recent low at 110. A move to the target lands us a 44%ish gain.
Volume: 1.291M Avg Volume: 1.392M
BUY POINT: $114.57 Volume=1.4M Target=$110.00 Stop=$116.32
POSITION: LM RC - June $115p (-50 delta)
http://www.investmenthouse.com/ci/lm.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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trade stock
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