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us stock market, trade stock
Begin part 3 of 3
THE PLAYS
Strong plays:
1) CC: Nice test during the market selling.
2) EQIX: Nice test to finish the handle
3) PMTI: This leader may just have completed its test.
4) FLSH: Now it is ready after the test.
5) HCR: Still ready.
6) KONG: Still like that volume.
NEW PLAYS:
Upside plays:
Play Date: 05/15/2006
CC (Circuit City--$29.45; -0.02; optionable): Consumer electronics stores
http://biz.yahoo.com/p/c/cc.html
STATUS: Test 18 day EMA. CC is making the second test of its breakout from a 10 week flat base formed over the 50 day EMA (27.07). Strong money flow continues to lead higher even as CC makes this pullback. Top rated in its sector, it used the recent selling to test its second run on the breakout, coming back to the 18 day (28.98) the past week, showing a doji at that level Monday, tapping it on the low and rebounding. Nice relative strength breakout on the move shows it has some legs. Nice test. Looking for some volume to return as it continues higher.
Volume: 1.961M Avg Volume: 2.213M
BUY POINT: $29.88 Volume=2.8M Target=$35.85 Stop=$28.78
POSITION: CC JF - Oct. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/cc.html
Play Date: 05/15/2006
EQIX (Equinix--$62.85; -0.24; optionable): Telecom services in US, Asia Pacific
http://biz.yahoo.com/p/e/eqix.html
STATUS: Cup w/handle. EQIX used the selling to continue work on its two week handle to its 7 week base, working laterally over the 18 day EMA (62.03). Nice action in a weak market, setting up the breakout move. Solid 2 to 0 accumulation in the pattern complemented by strong money flow. Used the 50 day EMA (58.33) on the lows of the pattern as support, indicating still plenty of interest in the stock. A breakout sends it to a new 4 year high. Strong fundamentals to go with the pattern. Solid volume Friday on an upside move; looking for continued volume as it moves through the buy point and delivers the breakout.
Volume: 288.888K Avg Volume: 486.052K
BUY POINT: $63.74 Volume=650K Target=$76.00 Stop=$61.65
POSITION: FQS IM - Sept. $65c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/eqix.html
Play Date: 05/15/2006
PMTI (Palomar Medical Tech--$40.90; +0.55; optionable): Medical appliances
http://biz.yahoo.com/p/p/pmti.html
STATUS: Test breakout. PMTI is a strong leader and sports excellent growth in sales and earnings. Surged out of a 15 week base to end April, rallying to 45 on the move. In the selling it came back to test, undercutting the 18 day EMA (40.52), but holding that near support on the close. Strong money flow and relative strength broke out on the move. Looking for a continued run after this test.
Volume: 327.304K Avg Volume: 287.64K
BUY POINT: $41.88 Volume=431K Target=$55.00 Stop=$39.38
POSITION: HKQ HH - Aug. $40c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/pmti.html
Play Date: 05/15/2006
RTN (Raytheon Co.--$47.27; +1.01; optionable): Aerospace/defense
http://biz.yahoo.com/p/r/rtn.html
STATUS: Ascending base. Strong volume Monday as RTN announced a couple of contracts, one from the Navy, one from the Air Force. That started it toward the breakout from its 9 week base that formed using the 50 day EMA (45.16) as support. No selling during the recent market pullback, low volume during that period, nice break higher once more. Looking for continued solid trade on the break higher.
Volume: 2.458M Avg Volume: 1.679M
BUY POINT: $47.55 Volume=2M Target=$54.95 Stop=$45.89
POSITION: RTN HW - Aug. $47.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ct/rtn.html
CONTINUING PLAYS
Play Date: 05/13/2006
AGU (Agrium--$26.70; -0.30; optionable): Agricultural nutrients, etc.
http://biz.yahoo.com/p/a/agu.html
STATUS: Breakout test. Test 18 day EMA. AGU tested a bit lower Monday, undercutting the 18 day EMA (26.48) but recovering that level on the close. Low volume so no selling. Looks ready to rebound. To recap: Excellent test of the early May breakout from its 11 week flat base formed above the 50 day EMA (25.65). Positive 3 to 1 accumulation in the base (3 up price weeks on rising volume to 1 down price weeks on rising volume) set up the breakout. Strong money flow as well. Relative strength broke out on the price move; that and the good action on the test shows its strength. Ready for the rebound.
Volume: 434.8K Avg Volume: 666.64K
BUY POINT: $27.38 Volume=750K Target=$32.75 Stop=$26.31
POSITION: AGU JE - Oct. $25c (67 delta) &/or Stock
http://www.investmenthouse.com/ct/agu.html
Play Date: 05/13/2006
FLSH (M-Systems Flash Disk--$35.18; -0.63; optionable): Semiconductor flash storage
http://biz.yahoo.com/p/f/flsh.html
STATUS: Cup w/handle. Still working on the handle, reaching down to the 18 day EMA (34.07) on the low and rebounding to hold the 10 day EMA (35.17). Nice shakeout action as it works on its handle, setting up the breakout. To recap: FLSH used the selling last week to come back to the 10 day EMA, forming a handle to its 18 week base. Roughly used the 200 day SMA (29.74) as support for the lows, a sign of institutional support. Accumulation is a solid 6 to 3, showing plenty of buying. Nice set up, ready for a 5.5 year high.
Volume: 1.105M Avg Volume: 1.292M
BUY POINT: $36.57 Volume=1.9M Target=$43.95 Stop=$35.00
POSITION: FFU JG - Oct. $35c (61 delta) &/or Stock
http://www.investmenthouse.com/ct/flsh.html
Play Date: 05/10/2006
HCR (Manor Care--$45.88; +0.34; optionable): Long-term care
http://biz.yahoo.com/p/h/hcr.html
STATUS: Test breakout. Reached higher Monday, but still could not make the breakaway move. Tried, but then faded off the high (46.24). Relative strength is breaking out. Just needs another move. To recap: HCR broke from a short 5 week base last week, rising off the 50 day EMA (43.42) on strong volume. It faded the past three sessions, testing the move but holding most of the gain. Positive 3 to 2 accumulation as HCR made higher lows up the 50 day while it set up for the breakout to a new all-time high. Good leader.
Volume: 975.8K Avg Volume: 774.614K
BUY POINT: New: $46.11 (orig. $45.65) Volume=750K Target=$52.50 Stop=$44.21
POSITION: HCR HI - Aug. $45c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/hcr.html
Play Date: 05/01/2006
HLTH (Webmd Corp.--$11.94; +0.04; optionable): Healthcare information service
http://biz.yahoo.com/p/h/hlth.html
STATUS: Test breakout. Reached to the breakout Monday but then faded back to flat by the close. Not bad volume but still looking for that breakaway move. To recap: Announced strong earnings mid-April and surged higher on strong volume, making the breakout from its 6.5 month cup with handle base. Excellent 8 to 2 accumulation (8 up price weeks on rising volume to 2 down price weeks on rising volume) shows strong buying in the base. Ready to break to a new 5 year high. Volume started to return last week. Ready to move in as it continues higher.
Volume: 2.63M Avg Volume: 2.645M
BUY POINT: $11.98 Volume=3.5M Target=$14.38 Stop=$11.22
POSITION: HUT JB - Oct. $10c (72 delta) &/or Stock
http://www.investmenthouse.com/ct/hlth.html
Play Date: 04/29/2006
KONG (Kongzhong--$13.95; -0.04; optionable): Chinese wireless interactive entertainment
http://biz.yahoo.com/p/k/kong.html
STATUS: Cup w/handle. Another good volume session that took KONG to 14.50 on the high, but it could not hold the move, giving it all back. Still showing a lot of pop, never selling back in the market selling. Still looking for that breakout move that holds. To recap: A new issue in mid-2004, KONG has set up a nice 17 week base just below a new all-time high. It formed the current base using the 200 day SMA (12.35) on the low as support. Positive accumulation is setting up the breakout. Nice pullback during the recent market selling has formed a low volume handle that held the 18 day EMA support. Just going to be patient and let it show us the break higher.
Volume: 627.397K Avg Volume: 261.96K
BUY POINT: $14.35 Volume=442K Target=$17.25 Stop=$13.35
POSITION: QKR IV - Sept. $12.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/kong.html
Play Date: 05/13/2006
PRFT (Perficient--$12.62; +0.12; no options): Design of ebusiness solutions
http://biz.yahoo.com/p/p/prft.html
STATUS: Ascending base. Good action, reaching down to the 18 day EMA (12.17) on the low and rebounding to close positive. No volume yet, however; looking for that to come. Looks pretty nice. To recap: A market leader that refuses to sell off as it works laterally the past 7 weeks above the 50 day EMA (11.70), consolidating the November breakout and run higher. Positive accumulation in the base is setting up the next move. Relative strength is breaking out ahead of price, a very good indication the stock will follow. Strong fundamentals. Have to like the way it has held up in the selling.
Volume: 116.501K Avg Volume: 187.8K
BUY POINT: $12.71 Volume=282K Target=$15.30 Stop=$12.00
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/prft.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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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