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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: AMKR; ANN; CTXS; DCEL; DXPE; GRMN; GYMB; MFLX; NUAN; RHAT; WFR
Tuesday night play results:
BID: Volume tailed off as it moved modestly higher.
HRS: Faded back to test the 50 day EMA on the intraday low and rebounded. Not the best action but still set up to move.
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/cd/abi.html
Play Date: 05/03/2006
FNSR (Finisar--$4.81; +0.12; optionable): Networking and communication
http://biz.yahoo.com/p/f/fnsr.html
After Hours: $4.81
STATUS: Flat base. FNSR exploded higher to start March, breaking out of a 15 month base and surging higher to 5. Needed a breather after that, forming the current 8 week lateral base along the 18 day EMA (4.71), consolidating the breakout move. After some dips in mid-April it recovered the 18 day and then moved laterally the past three weeks, tightening its range on low volume. That is setting up the next break higher. Need to see the volume surge back up as FNSR makes the break higher.
Volume: 6.31M Avg Volume: 15.458M
BUY POINT: $5.05 Volume=18M Target=$6.25 Stop=$4.74
POSITION: FQP JA - Oct. $5c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/fnsr.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/cd/rnwk.html
Play Date: 05/03/2006
TQNT (Triquent Semiconductor--$5.65; +0.24; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/t/tqnt.html
After Hours: $5.69
STATUS: Test breakout. Have kept this one on the burner, and now it looks to have made it through a late April rough patch (borrowed that from Greenspan) where it tested a gap higher. Wednesday TQNT came off the 18 day EMA (5.27) on very strong trade. Looks as if TQNT is going to continue the breakout from its 18 week base formed bracketing the 50 day EMA (5.01). Solid 4 to 2 accumulation is complemented by strong money flow. Relative strength broke out Wednesday, a very good indication that the price move is solid. Ready to move in as TQNT continues higher.
Volume: 3.505M Avg Volume: 1.658M
BUY POINT: $5.81 Volume=2.5M Target=$7.25 Stop=$5.40
POSITION: TQN HA - Aug. $5c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/tqnt.html
Downside:
Play Date: 05/03/2006
CHRW (C.H. Robinson Worldwide--$46.09; -0.21; optionable): Air delivery and freight
http://biz.yahoo.com/p/c/chrw.html
After Hours: $46.09
STATUS: Put. After a breakout in February and a strong run to 53, CHRW ran out of gas so to speak. It was testing normally, and then crashed through the 50 day EMA (46.79) a week back, falling on high volume. It caught itself near some support at 45 and rebounded, but volume trailed off as it did. Wednesday it showed a doji just below the 50 day; the low volume bounce indicates further selling is ahead. Looking for CHRW to turn back over. A move to the target lands us a 44%ish gain.
Volume: 764.895K Avg Volume: 1.148M
BUY POINT: $45.94 Volume=1.3M Target=$43.95 Stop=$46.80
POSITION: CJQ RI - June $45p (-35 delta)
http://www.investmenthouse.com/cd/chrw.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
COH: Rallied higher on strong volume but closed well off the intraday high after tapping at the 200 day SMA intraday. Not the move that will take it out of the downtrend.
MRVL: Trying to set a double bottom here at 55 and just over the 200 day SMA.
NVDA: Nice lateral test after the strong Monday move.
PSYS: Bombs away. Impressive volatility, but this has the look of a very nasty drop.
UNH: And back to the selling.
SUBSCRIBER WATCHLIST
SSYS: 3D printing systems, etc. Surged higher in mid-April, rallying to form the right side of a 10 month cup base. Reported earnings in late April, and that sparked another run the past week. Would like to see a nice test here to form a good handle to the base and set up a really strong breakout move.
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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trade stock
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