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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CHRW; LAB
Tuesday night play results:
LIFC: Still setting up for the break higher, ignoring the selling.
OII: Still set, holding the 18 day EMA
RTK: Nice volume again as it hit the buy right before the close. Ready.
GRMN: Nope. Tanked through the 18 day EMA.
New Plays:
Upside:
Play Date: 05/17/2006
CYMI (Cymer--$48.73; -0.90; optionable): Chip equipment
http://biz.yahoo.com/p/c/cymi.html
STATUS: Test 50 day EMA. CYMI was moving on solid volume to start May, trying to move past its mid-April high at 56. The selling caught it, and as with other stocks CYMI sold off. The action managed to fill the gap from April, holding the 50 day SMA (48.58) the past three sessions. Money flow remains strong even with this pullback. Want to see a good volume break higher through the buy point.
Volume: 1.152M Avg Volume: 964.4K
BUY POINT: $50.11 Volume=1.4M Target=$60.00 Stop=$48.44
POSITION: COG HU - Aug. $50c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/cymi.html
Play Date: 05/17/2006
FSL (Freescale Semiconductor--$30.00; -0.53; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
STATUS: Test 50 day EMA. This is Motorola's semiconductor spin-off, and in its 2 years has moved steadily higher. It broke out from a 5 month flat base in mid-April, surging on strong volume on strong earnings. After peaking on that run in early May at 33, it started to test, holding the 18 day EMA (30.85) originally, but then fell lower last week, coming to the 50 day EMA (29.61). It has moved laterally above the 50 day the past four sessions with volume jumping back up Wednesday. Looking for that volume to continue as FSL rebounds from this test that also filled the April gap higher.
Volume: 2.835M Avg Volume: 2.14M
BUY POINT: $30.95 Volume=2.5M Target=$37.00 Stop=$29.48
POSITION: FSL IF - Sept. $30c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/fsl.html
Play Date: 05/17/2006
LRCX (Lam Research--$47.45; -1.03; optionable): Chip equipment
http://biz.yahoo.com/p/l/lrcx.html
After Hours: $47.47
STATUS: Test 50 day EMA. LRCX rallied to start May with a nice high volume break higher, moving out of a 13 week cup with handle base that formed over the 50 day EMA (46.89). It got caught in the selling, but most of the downside was on light to below average volume, and unlike many stocks, the pullback did not wreck its pattern. Volume was up Tuesday as LRCX showed a nice hammer doji at the 50 day. Want to see continued rising volume as LRCX moves through the buy point.
Volume: 3.175M Avg Volume: 3.151M
BUY POINT: $48.57 Volume=4M Target=$58.65 Stop=$46.55
POSITION: LMQ IJ - Sept. $50c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/lrcx.html
Play Date: 05/17/2006
MORN (Morningstar--$46.22; +0.76; optionable): Asset management
http://biz.yahoo.com/p/m/morn.html
After Hours: $46.22
STATUS: Reverse head and shoulders. A new issue in May 2005, MORN is setting up for the breakout from its 8 week base that formed on top of the 50 day EMA (43.37). Excellent 4 to 0 accumulation in the base shows all buying as MORN consolidates 5 month run ahead of its next breakout. Have to like all of that buying, and money flow is running as well. Volume jumped well above average this week. Relative strength has already broken out, a nice bullish move.
Volume: 193.004K Avg Volume: 70K
BUY POINT: $46.89 Volume=200K Target=$53.95 Stop=$44.48
POSITION: QMR II - Sept. $45c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/morn.html
Continuing play ready to move:
Play Date: 05/13/2006
FLSH (M-Systems Flash Disk--$34.71; -0.19; optionable): Semiconductor flash storage
http://biz.yahoo.com/p/f/flsh.html
After Hours: $34.83
STATUS: Cup w/handle. Nice doji at the 18 day EMA (34.21) Wednesday, tapping that support on the low and rebounding for a modest loss. Excellent formation of the handle, using the market selling to form up for the breakout. Nice. To recap: FLSH used the selling last week to come back to near support and form a handle to its 18 week base. Roughly used the 200 day SMA (29.83) 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: 1.038M Avg Volume: 1.296M
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/ci/flsh.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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stock recommendation
stock market recommendation
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