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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: FSL; FTI; GLBL; MGI; OII; PLLL; SYKE
Tuesday night play results:
CTRP: Holding the 18 day EMA on lower volume, still set to move.
LH: Big volume as LH looks toward the breakout.
ORBK: Big reach lower and recovery on strong volume.
CBG: Heading the wrong way on rising trade.
KFX: Doji, holding flat on an up session.
New Plays:
Upside:
Play Date: 05/31/2006
CELG (Celgene--$41.45; +1.15; optionable): Biotechnology
http://biz.yahoo.com/p/c/celg.html
After Hours: $41.50
STATUS: Ascending base. Good price/volume action the past three sessions with a good spike Friday as CELG gapped higher and another rising volume session Wednesday as CELG posted a nice gain off the 50 day EMA (39.85). CELG looks ready to move out of its 8 week consolidation over that support level after its strong 2005 to March 2006 run. Positive accumulation and strong money flow. Looking for continued strong volume as CELG makes the breakout from its base to a new all-time high.
Volume: 3.901M Avg Volume: 3.636M
BUY POINT: $42.95 Volume=5.5M Target=$51.50 Stop=$40.55
POSITION: LQH JV - Oct. $42.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/celg.html
Play Date: 05/31/2006
HLEX (Healthextras--$30.04; +0.43; optionable): Pharmacy benefit management
http://biz.yahoo.com/p/h/hlex.html
STATUS: Double bottom w/handle. HLEX enjoyed a nice run in late 2005 and early 2006, making something of a climax move in mid-March. That topped it out on that long run and then it slipped into the current 10 week pattern that made a couple of bottoms over the 200 day SMA (26.70). Nice set up for a break higher, moving laterally the past three sessions just below the 50 day EMA (30.31), showing a good above average volume spike Wednesday. Money flow is way out in front, surging higher ahead of price. This is a strong market leader that is ready to make the next breakout and give us a nice run.
Volume: 363.546K Avg Volume: 315.128K
BUY POINT: $30.57 Volume=473K Target=$36.72 Stop=$29.34
POSITION: HUE IF - Sept. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/hlex.html
Play Date: 05/31/2006
NTGR (Netgear--$23.41; +1.55; optionable): Telecom communications equipment
http://biz.yahoo.com/p/n/ntgr.html
After Hours: $23.69
STATUS: Cup w/handle. NTGR has formed an 8 month base, setting up for a new all-time high. Big surge to end April on strong earnings, sending NTGR to 25, the September 2005 and the high on the left side of the base. That turned it back, and NTGR faded this month, forming the handle to the base. Volume jumped back up Wednesday after a very low showing the prior week. Strong money flow is leading higher. Heading toward the breakout on solid trade. Ready to move in as NTGR continues higher through the buy point.
Volume: 1.413M Avg Volume: 712.017K
BUY POINT: $23.75 Volume=1M Target=$28.50 Stop=$22.55
POSITION: TUD IX - Sept. $22.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/ntgr.html
Play Date: 05/31/2006
VSH (Vishay Intertechnology--$16.25; +0.71; optionable): Semiconductors and passive electronic components
http://biz.yahoo.com/p/v/vsh.html
STATUS: Test 50 day EMA. Big upside volume Wednesday as VSH moved off the 50 day EMA (15.59). Looks to have completed the test of a strong breakout in early May from a 13 week cup with handle base. It tested, going a bit further than you would want, but holding up. Good hold and recovery, and the buyers were coming back in on Wednesday. Looking to move into the play as it continues higher on more solid trade.
Volume: 3.665M Avg Volume: 1.64M
BUY POINT: $16.39 Volume=1.7M Target=$20.00 Stop=$15.45
POSITION: VSH JC - Oct. $15c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/vsh.html
Continuing plays ready to move:
Play Date: 05/25/2006
EXPD (Expeditors Intl.--$98.45; +1.36; optionable): Air delivery, etc. Splits 2:1 on 6-26-06
http://biz.yahoo.com/p/e/expd.html
After Hours: $98.45
STATUS: Test breakout. Tightening up nicely right at the 18 day EMA (98.39) with volume edging higher Wednesday. Looks ready to give us the break higher to continue the big early May gap higher and show us a strong, money-making pre-split run.
Volume: 991.819K Avg Volume: 1.072M
BUY POINT: $98.95 Volume=1.5M Target=$110.00 Stop=$95.05
POSITION: URP HS - Aug. $95c (66 delta)
http://www.investmenthouse.com/ci/expd.html
Play Date: 05/20/2006
PKE (Park Electrochemical--$31.77; +1.14; optionable): Printed circuit boards
http://biz.yahoo.com/p/p/pke.html
STATUS: Test 50 day EMA. Strong volume surge Wednesday as PKE held the 50 day EMA (31.03) and bounced. Ready to continue the move. To recap: Broke out from a 5 month base in January and rallied pretty steadily up the 18 day EMA (31.65). A big early May surge sent it over 36, but it could not hold the move, immediately slipping into a test. The test took it deeper than usual; got caught up in the market selling. Held the 50 day and made its own little double bottom at that support the past week. Like that volume and the strong money flow. Ready to make its next leg higher.
Volume: 237.8K Avg Volume: 107.047K
BUY POINT: $31.97 Volume=145K Target=$39.00 Stop=$29.89
POSITION: PKE IF - Sept. $30c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/pke.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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us stock market
stock recommendation
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