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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: AGIX; CX; NVTL; SMH; PFCB
Monday night play results:
DADE: Gapped higher but in the market selling ended flat.
DBRN: Rallied higher from the Monday move but the selling pushed it back to flat.
TSAI: Held steady, still setting up the pattern.
OPTV: Rallied higher but as the market sold it finished flat.
New Plays:
Upside:
Play Date: 06/27/2006
ACTU (Actuate--$4.38; -0.01; optionable): Application software
http://biz.yahoo.com/p/a/actu.html
STATUS: Cup w/handle. Working laterally this week in its 8 week base formed around the 50 day EMA (4.14). This is the second base for ACTU after coming off of its low last fall. Very solid action in a wobbly market, ignoring the indices and setting up for its own breakout. Solid pattern with relative strength ready for the breakout.
Volume: 405.378K Avg Volume: 345.203K
BUY POINT: $4.49 Volume=415K Target=$5.65 Stop=$4.18
POSITION: UCV JA - Oct. $5c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/actu.html
Play Date: 06/27/2006
CLHB (Clean Harbors--$38.32; -0.93; optionable): Waste management
http://biz.yahoo.com/p/c/clhb.html
STATUS: Breakout test. CLHB is moving laterally above the 10 day EMA (38.38), making the second test of near support after the strong break higher in early May. That move took it out of a 6.5 month base. Using the market selling to test and set up the next move in the breakout run. Stocks tend to make 4 to 5 runs off the near support after a breakout, leaving plenty of room for CLHB to move higher from here. Solid fundamentals to go with its strong pattern. Great money flow. Relative strength has broken out and is holding up.
Volume: 236.06K Avg Volume: 268.366K
BUY POINT: $39.35 Volume=400K Target=$46.95 Stop=$37.65
POSITION: QPB JH - Oct. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/clhb.html
Downside:
Play Date: 06/27/2006
IWV (Russell 3000 Index ETF--$71.70; -0.77; optionable)
http://biz.yahoo.com/p/i/iwv.html
STATUS: Put. Turned lower at the 18 day EMA (72.59) Monday on huge volume and looks to be starting the third leg lower in its downtrend that started in early May. The drops have run 4 points each, so our target is rather conservative. If it is falling hard at that point we will let it continue lower though will likely take some interim gain. A move to the target lands us a 49%ish gain.
Volume: 2.055M Avg Volume: 223.248K
BUY POINT: $71.55 Volume=335K Target=$69.80 Stop=$72.04
POSITION: ILV TT - Aug. $72p (-49 delta)
http://www.investmenthouse.com/cd/iwv.html
Play Date: 06/27/2006
NVS (Novartis--$52.06; -0.80; optionable): Drugs
http://biz.yahoo.com/p/n/nvs.html
After Hours: $52.97
STATUS: Put. NVS formed a broad top April to early June and then broke lower below the 50 day EMA (54.60) and then the 200 day SMA (54.12) in one big dive lower. It held 52 as support and bounced up to 53, a resistance point it gapped below on the way down. It faltered there and dropped back to 52 Tuesday on very strong, above average volume. Looks ready to resume the move lower. A drop to the target lands us a 40%ish gain. It fell 4 points on the first move so if it is tanking on this drop we will let some of the positions continue to run.
Volume: 1.844M Avg Volume: 1.178M
BUY POINT: $51.88 Volume=1.2M Target=$49.85 Stop=$52.31
POSITION: NVS TK - Aug. $55p (-72 delta)
http://www.investmenthouse.com/cd/nvs.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, AKAM, CCJ, CELG, FLR, GME, MGPI, MRVL, NVDA, SGMS, WM
AAPL: Not looking too solid here as it turns lower after trying to make a second bottom at the late March low.
AKAM: Looks like a low volume test coming and after the selling this can give us a buy point.
CCJ: Turned lower sharply from the 50 day EMA on rising trade.
CELG: Holding up well, maintaining its breakout.
MGPI: Turning lower at the 10 day EMA but no trade.
MRVL: Hammered after announcing it was buying INTC's flash memory chip business.
NVDA: Turning lower on rising trade. Time to sell some $20 calls if you are hanging onto it.
SUBSCRIBER WATCHLIST:
QCOM: As the subscriber noted, it closed its early November gap, this time with a gap of its own last Friday. Tuesday it was lower again on average trade. It is in a spiral lower and right now is showing no inclination to stop.
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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us stock market
stock recommendation
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