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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS
Good movers: JOBS
Thursday night play results:
CDNS: Nice doji on strong volume, holding up very well in the late week selling
GES: Still working on the handle, holding the 10 day EMA in a weak market
PX: Sank to the 50 day EMA where it still holds the pattern but needs to set back up a bit.
New Plays:
Upside:
Play Date: 05/13/2006
CLHB (Clean Harbors--$35.63; +0.87; optionable): Environmental & hazardous waste management
http://biz.yahoo.com/p/c/clhb.html
STATUS: Double bottom w/handle. CLHB shot higher to start the month on earnings and an acquisition announcement (buying Teris). That took it over the 'hump' in the middle of its 26 week base formed using the 200 day SMA (29.87) on the lows as support. Nice lower volume fade the past week, coming back to the 10 day EMA (33.82) on the Friday intraday low and then a nice volume surge off that level to close the week. Very nice handle shaking out the quick profit takers from the surge. Solid 9 to 6 accumulation in the base (9 up price weeks on rising volume to 6 down price weeks on rising volume) shows net buying in the base, and that is setting up the breakout. Liked the action Friday in a weak market and ready to move in as it makes the breakout move.
Volume: 462.799K Avg Volume: 270.913K
BUY POINT: $36.42 Volume=406K Target=$43.95 Stop=$33.87
POSITION: QPB JG - Oct. $35c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/clhb.html
Play Date: 05/13/2006
IFO (Infosonics--$19.15; +1.64; no options): Wireless handset testing, approval, certification, warehousing, logistics for distribution, etc.
http://biz.yahoo.com/p/i/ifo.html
After Hours: $20.44
STATUS: Cup. Very strong volume surge the past week as IFO broke higher from a week long lateral move in its 17 week base. Good move started on strong earnings. Strong 4 to 1 accumulation in the base (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying to send it higher. Looking to move in on a further upside move and then will add positions as it makes its first test that holds and then rebounds. Money flow is screaming higher as well. A new issue in June 2004, so it is still a youngster, and this is its first big base.
Volume: 977.3K Avg Volume: 182.014K
BUY POINT: $19.32 Volume=250K Target=$23.50 Stop=$17.97
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ifo.html
Play Date: 05/13/2006
MSSR (McCormick & Schmicks Seafood--$26.22; -0.44; no options): Seafood restaurant chain
http://biz.yahoo.com/p/m/mssr.html
STATUS: Breakout test. Strong surge to start the month on strong earnings that broke MSSR out of its 19 week cup with handle base. Strong 6 to 3 accumulation shows a lot of buying that set up the breakout and the run to come. Used the market selling to test its breakout, undercutting the 18 day EMA (25.94) on the Friday lows and then rebounding to hold that level on the close. Love the way it minds its own business as the market gyrates. A new issue in July 2004, MSSR is a youngster as well. Ready to move in as it climbs back up off of this test.
Volume: 49.738K Avg Volume: 85K
BUY POINT: $26.72 Volume=125K Target=$32.00 Stop=$25.78
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/mssr.html
Play Date: 05/13/2006
VSH (Vishay Intertechnology--$16.41; -0.42; optionable): Semiconductors and passive electronic components
http://biz.yahoo.com/p/v/vsh.html
STATUS: Test breakout. VSH used last week's late selling to test its early May breakout from a nicely formed 13 week reverse head and shoulders base. Strong volume on the break higher as earnings came in strong. Volume got a bit out of hand Friday as VSH fell further back, but held the 18 day EMA (16.37) on the close. Outstanding 5 to 1 accumulation shows heavy buying during the base. After this test it will be ready to continue the break higher.
Volume: 3.487M Avg Volume: 1.477M
BUY POINT: $16.81 Volume=2.2M Target=$20.31 Stop=$16.12
POSITION: VSH JC - Oct. $15c (69 delta) &/or Stock
http://www.investmenthouse.com/cd/vsh.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
This market correction is exposing (or exploiting) weaknesses in stocks, portfolio members included. Need some input as to stocks you want to see to replace BRCM, COH, FFIV, PSYS, UNH
AAPL: Not sure about those new commercials that push AAPL's new operating system that can run Windows. There is even a better one out that does not require shutting down the entire machine to switch OS. Apple faded all week, but held near the 50 day EMA, showing a doji Friday. Trying to make a higher low and continue higher.
CELG: Thudded to the 50 day SMA (40.49) Friday, holding that level on the close. Still decent in the 7 week pattern.
MRVL: Big volume Friday with a doji at the 200 day SMA (54.12). Very interesting. Want to see it over the 50 day EMA (57.56) to consider some upside positions.
NVDA: Sold hard Friday, gapping below the 50 day EMA (27.86) on earnings and strong volume. Rebounded intraday but then rolled back down to the close. The May $30 call options sold for $1.05 were asking basically nothing Friday. Can ride it out to expiration but might as well buy them back and wait for NVDA to bounce if it can.
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 option
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