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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: SMSI; ALTR; CMC; KFX; XTD
Tuesday night play results:
DBRN: Nice doji at the 50 day SMA.
HOC: Energy had a tough day and HOC faded to the 18 day EMA
ICON: Fell to the 50 day EMA on light trade. Will see if it can make the bounce from this support.
MXWL: Nice, nice doji at the 10 day EMA
OII: Fell to the 10 day EMA as energy stocks struggled.
New Plays:
Upside:
Play Date: 06/07/2006
GRMN (Garmin Ltd.--$92.96; +0.48; optionable): GPS devices
http://biz.yahoo.com/p/g/grmn.html
After Hours: $92.26
STATUS: GRMN has formed a short 5 week cup with handle on top of the 50 day EMA (88.12), using that as support as it takes a breather from its strong March to early May run and the gap higher to start May. The pattern has given it a breather and has filled that gap. Nice hold at support, nice handle at the 18 day EMA (92.41), setting up the next run higher. Strong leader holding up well in the selling. Likely to give us a split announcement as well.
Volume: 1.034M Avg Volume: 1.088M
BUY POINT: $94.25 Volume=1.6M Target=$106.00 Stop=$91.88
POSITION: GQR JS - Oct. $95c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/grmn.html
Play Date: 06/07/2006
HWAY (Healthways--$52.98; +1.00; optionable): Specialized health services. Forecast 6-20-06 w/earnings.
BACKGROUND: Last announced a 2:1 split on 11-19-03 at $41.20. Before that a 3:2 split on 10-29-01 at $27.50.
http://biz.yahoo.com/p/h/hway.html
STATUS: Test breakout. HWAY got a bit wild, but after an intraday test of the 18 day EMA (51.26) Tuesday, it recovered nicely Wednesday, moving off the 10 day EMA (52.15) on solid, above average volume. Very solid 10 week base formed using the 50 day EMA (49.43) as support, a key institutional level. Strong money flow is leading higher. Relative strength broke out on the price break as well. Looks ready to move back up and for us to move back in.
Volume: 473.106K Avg Volume: 367.358K
BUY POINT: $53.25 Volume=551K Target=$63.95 Stop=$51.15
POSITION: QMH KK - Nov. $55c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/hway.html
Play Date: 06/07/2006
KNOL (Knology, Inc.--$9.92; +0.29; no options): Wireless telecom
http://biz.yahoo.com/p/k/knol.html
STATUS: Cup w/handle. After a strong run from March through mid-May KNOL needed a rest as it approached its all-time high hit back in early 2004 when KNOL was a new issue. Short but nice 5 week base over the 50 day EMA (8.04) sporting 3 to 1 accumulation (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows buying even as KNOL took a breather. Good shakeouts the past two sessions as KNOL tested down to the 18 day EMA (9.09) intraday and rebounded. This action is setting up its next breakout.
Volume: 334.225K Avg Volume: 215.617K
BUY POINT: $10.41 Volume=323K Target=$12.50 Stop=$9.68
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/knol.html
Downside:
Play Date: 06/07/2006
OXY (Occidental Petroleum--$94.72; -3.07; optionable): Oil and gas integrated
http://biz.yahoo.com/p/o/oxy.html
After Hours: $94.64
STATUS: Put. Energy was down sharply Wednesday and OXY fell as well on strong, above average volume. It does not look to have played out this move, however, as it tried to rally Tuesday at the 50 day EMA (97.82) and the recent lows, but then folded Wednesday. That opens the door for a test down to the May low (89.56) as OXY follows its tanking money flow. A move to the target lands us a 40%ish gain.
Volume: 6.583M Avg Volume: 3.736M
BUY POINT: $94.44 Volume=3.8M Target=$90.00 Stop=$95.65
POSITION: OXY SS - July $95p (-46 delta)
http://www.investmenthouse.com/ci/oxy.html
Continuing play ready to move:
Play Date: 05/30/2006
LH (Laboratory Corp.--$60.21; +0.45; optionable): Medical labs
http://biz.yahoo.com/p/l/lh.html
STATUS: Double bottom w/handle. Gapped higher and cleared the buy point, but volume was lower and below average as LH closed off of its intraday high. Like the price move; good for a weak market. Now we need to see some volume come in to give us the buy. To recap: Sweet little 9 week base has formed right at its old (1992) all-time high. Nice use of the 50 day EMA (58.50) as support for the base with the handle coming back to that level last week intraday and rebounding. Strong money flow and a relative strength breakout a week back. Very strong action in a weak market, holding its own and using the selling to set up its breakout. Looking for that high volume to return and give us the buy point.
Volume: 640.6K Avg Volume: 693.823K
BUY POINT: $60.45 Volume=1M Target=$70.00 Stop=$58.00
POSITION: LH KL - Nov. $60c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/lh.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 split
stock recommendation
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