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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ANN; BA; CELG; FORR; GRMN; JCOM
Wednesday night play results:
ABI: Held steady on low volume, not participating in the rally
ACTS: Moved off the 50 day EMA but no volume yet.
BA: Nice surge higher continues on strong volume.
GRMN: Ditto.
New Plays:
Upside:
Play Date: 06/15/2006
ARRO (Arrow Intl.--$33.95; +0.83; optionable): Medical instruments
http://biz.yahoo.com/p/a/arro.html
STATUS: Cup w/handle. While the market sold ARRO went about its business, forming the current 16 month base and indeed moving higher in late May and early June. As the market sold the past three weeks ARRO moved laterally over the 10 day EMA (33.18) forming the handle the base. This is where it shakes out the last sellers and clears the way for the breakout and run. Volume has spiked up above average on a few sessions in this move and again on Thursday. Looks ready to show us the breakout and run to that new all-time high.
Volume: 181.593K Avg Volume: 128.291K
BUY POINT: $34.55 Volume=192K Target=$39.75 Stop=$32.65
POSITION: AJQ IG - Sept. $35c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/arro.html
Play Date: 06/15/2006
GPN (Global Payments--$49.03; +2.24; optionable): Payment systems
http://biz.yahoo.com/p/g/gpn.html
STATUS: Test 200 day SMA. A perennial market leader, GPN needed a rest after a strong 7 month move higher that peaked in March. It slipped lower and into the current base, bottoming at the 200 day SMA (45.58) in mid-May and then moving laterally the past month along that key support. Volume returned the past week and GPN jumped higher Wednesday and Thursday. Strong price moves as well. Looking to start some positions as GPN continues higher and then again as it tests, forms a handle and breaks higher once more. A leader that is coming back to life after a rest.
Volume: 1.044M Avg Volume: 737.923K
BUY POINT: $49.25 Volume=1.1M Target=$56.65 Stop=$46.65
POSITION: GPN KJ - Nov. $50c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/gpn.html
Play Date: 06/15/2006
SBUX (Starbucks--$36.79; +0.92; optionable): Coffee on every street corner
http://biz.yahoo.com/p/s/sbux.html
After Hours: $36.79
STATUS: Cup. SBUX is another leader that broke out from a 13 month base in earl February and rallied up to 40 at the peak in May. It then slipped into the current 7 week base, working on a cup. It jumped higher Thursday with the market, moving through the 50 day EMA (36.30). Looking to start some positions as SBUX moves through the 50 day SMA (36.99). We will then let it move higher, form a handle, and then buy more as it breaks out again.
Volume: 5.367M Avg Volume: 6.1M
BUY POINT: $37.08 Volume=6.5M Target=$42.65 Stop=$35.72
POSITION: SQX JJ - Oct. $37.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/sbux.html
Downside:
Play Date: 06/15/2006
RTI (RTI Intl. Metal--$54.47; +3.77; optionable): Industrial metals and minerals
http://biz.yahoo.com/p/r/rti.html
After Hours: $53.50
STATUS: Put. RTI is one of those metals that exploded higher in early May in that blow off top after a long solid run higher. It peaked at 80ish and then collapsed. It held the 50 day EMA (58.05) and then collapsed through that as well to start June. It tapped at the 200 day SMA (45.21) on the Tuesday low and then rebounded, coming up to the 10 day EMA (54.79) Thursday. Looking for it to roll over there and drop back again. That move to the target lands us a 40%ish gain. If it continues higher toward the 18 day EMA (57.07) we will let it and then wait for the turn back down.
Volume: 1.385M Avg Volume: 932.229K
BUY POINT: $54.12 Volume=1M Target=$48.00 Stop=$54.95
POSITION: RTI UK - Sept. $55p (-44 delta)
http://www.investmenthouse.com/ci/rti.html
Play Date: 06/15/2006
SCHN (Schnitzer Steel--$33.69; +2.04; optionable): Scrap steel, etc.
http://biz.yahoo.com/p/s/schn.html
STATUS: Put. SCHN peaked in early April, gapped lower, filled it, and then started the current downtrend. It bounced off the 200 day SMA (33.75) on its first test in late May, then fell through it the past week after turning back down yet again. Wednesday and Thursday it rebounded to test that 200 day SMA breach, but volume declined each session and it stalled just below the 200 day after crossing over intraday. Looking for SCHN to fail here and continue lower. A move to the target lands us a 40%ish gain.
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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