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world stock market, us stock market
Begin part 3 of 3
THE PLAYS
Good movers: ANN; GRMN; GYMB; JOBS; NTRI; SMDI; SPSS
Thursday night play results:
AKAM: Nice volume as it continued its move off the 50 day EMA
AGR: Still in the nice test, showing some better volume Friday.
GRMN: Starting back up off the 50 day EMA on very solid trade.
New Plays:
Upside:
Play Date: 05/20/2006
BHI (Baker Hughes--$78.85; 0.00; optionable): Oil and gas service company
http://biz.yahoo.com/p/b/bhi.html
STATUS: 50 day EMA test. Very common pattern among the leaders, and BHI is definitely a leader. Nice late April breakout from a 13 week cup with handle base, rallying to 88.76 on the move. It of course was hit in the energy and related selling the past two weeks, but it slowed as it approached its 50 day EMA (76.69), testing that level intraday Friday with a tap and then a rebound. Strong volume on the move back up, and the positive close is a very good indication. Strong 5 to 2 accumulation in the base (5 up price weeks on rising volume to 2 down price weeks on rising volume) shows plenty of buying. Nice doji Friday, and looking for the rebound to start from here after what looks to be a successful test of the breakout.
Volume: 5.91M Avg Volume: 3.809M
BUY POINT: $79.88 Volume=5M Target=$95.00 Stop=$76.48
POSITION: BHI JP - Oct. $80c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/bhi.html
Play Date: 05/20/2006
CTXS (Citrix Systems--$39.95; 0.00; optionable): On demand information access software, etc.
http://biz.yahoo.com/p/c/ctxs.html
After Hours: $40.54
STATUS: Test 50 day EMA CTXS made us some great coin this year, after the strong run up through early May it needed a breather. The market selling came along and pushed it back to the 50 day EMA (38.62). We said we were going to let it make the test and then move back in. It looks to have done that, undercutting the 50 day EMA intraday on Friday and then rebounding for a positive close on the best volume in a month. A strong market leader this one, and we are looking for CTXS to make us some more scratch as it rebounds off the 50 day.
Volume: 4.476M Avg Volume: 2.656M
BUY POINT: $40.88 Volume=4M Target=$49.00 Stop=$38.55
POSITION: XSQ IH - Sept. $40c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/ctxs.html
Play Date: 05/20/2006
PSSI (PSS World Medical--$19.12; +0.13; optionable): Medical equipment
http://biz.yahoo.com/p/p/pssi.html
STATUS: Flat base. Has the 7 year high itch, forming a 10 week flat base over the 50 day EMA (18.44) on low volume as it stair-steps up the 50 day EMA for the past 6 months. This base is much needed, giving this leader a nice rest to set up the next move. Like how relative strength has broken out ahead of the stock price; very bullish indication a price breakout is coming soon.
Volume: 571.2K Avg Volume: 475K
BUY POINT: $19.39 Volume=712K Target=$22.95 Stop=$18.55
POSITION: PYQ HW - Aug. $17.50c (76 delta) &/or Stock
http://www.investmenthouse.com/cd/pssi.html
Play Date: 05/20/2006
RBAK (Redback Networks--$23.00; 0.00; optionable): Telecom networking equipment across the world
http://biz.yahoo.com/p/r/rbak.html
After Hours: $23.04
STATUS: Flat base. Volume surged Friday as RBAK filed an 8-K announcing it was going to offer 8M shares. The price jumped too, taking RBAK nearer the breakout from its 7 week consolidation above the 50 day EMA (21.24) that is giving it some rest before moving to another new high. Positive accumulation shows net buying and relative is ready for the breakout move ahead of price, always a bullish indication. Looking for continued trade as RBAK makes its breakout move.
Volume: 6.441M Avg Volume: 1.892M
BUY POINT: $23.55 Volume=2.8M Target=$28.48 Stop=$21.96
POSITION: RBU IX - Sept. $22.50c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/rbak.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
We were going to put the new picks on the report this weekend, but we received a flood of late candidates. We are still sorting through them but will have them ready for Monday. The responses are varied ranging, for example GM, CCJ, BNI, SNDK, CVH, DIS, PALM, ET, SNDK, etc. Any last minute choices will be considered, though I hate to say that given all the candidates sent in. Replacing: BRCM (this one is on the bubble), COH, FFIV, PSYS, UNH
AAPL: Still trying to make that higher low at the 200 day SMA (63.16), showing rising average trade Friday as it made the bounce.
CELG: Trying to hold some support at 38 and make a higher low for a run at the 50 day EMA (39.76) it fell through Wednesday.
MRVL: Gapped higher Friday on its strong earnings report, moving through the 200 day SMA but closing just below the 50 day EMA (56.51). This is the key for MRVL as the 50 day stopped it the last two times it tried that level.
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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