us stock market, stock watch

Begin part 3 of 3

THE PLAYS

Good movers: CTSH; DNA; FWRD; HCR; MRO; SIE; TZOO; RTI

Wednesday night play results:
CIEN: Still setting up very nicely for the break higher
DIA: Nice move on some volume, looking for more Friday after an early test.
GRMN: Did not test back as we wanted. One we are looking for a test early.
TZOO: Nice volume move higher.
VLO: Still working laterally, forming the solid handle.

New Plays:

Upside:

Play Date: 07/06/2006
CHRW (C.H. Robinson Worldwide--$53.05; +0.30; optionable): Air delivery and freight
http://biz.yahoo.com/p/c/chrw.html
After Hours: $53.50
STATUS: Breakout test. Took our money off the table Wednesday in an abundance of caution given the missile issues and ADP jobs report. CHRW checked up at 52 on the low and bounced some Thursday but on low, below average volume. May come back to test some more, but if we get a good market surge and CHRW is rallying we are looking at moving right back into this market leader as drives higher on this breakout from a 10 week double bottom with handle base. Solid stock.
Volume: 1.062M Avg Volume: 1.305M
BUY POINT: $53.68 Volume=1.5M Target=$61.75 Stop=$61.12
POSITION: CJQ KK - Nov. $55c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/chrw.html

Play Date: 07/06/2006
FORM (Formfactor--$43.98; 0.00; optionable): Semiconductors
http://biz.yahoo.com/p/f/form.html
STATUS: Breakout test. As with CHRW, we took some gain off of the table Wednesday as FORM dropped on some strong volume from its new high on the breakout. It managed to check the selling at 44, the April high on the left side of its 9 week double bottom base. Big breakout in late June on strong volume sent it to 47. It may snug up closer to the 10 day EMA (42.38) before it is ready to resume the move, and if it sells toward that level Friday early we will watch to see if it holds and then be ready to move in. If we get some upside, going to move in with some new positions as well. A leader in its sector and indeed in the market. Not your average chip stock. It has, you could say, very good form, and that is a factor in our liking the stock.
Volume: 582.149K Avg Volume: 749.424K
BUY POINT: $44.57 Volume=850K Target=$51.50 Stop=$42.55
POSITION: AFU JI - Oct. $45c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/form.html

Play Date: 07/06/2006
INFY (Infosys Technologies--$78.06; +1.31; optionable): Software. Splits 2:1 on 7-18-06
http://biz.yahoo.com/p/i/infy.html
STATUS: Cup w/handle. INFY is working on a handle to an 11 week base that formed after the stock gapped higher in mid-April, moving out of a 15 week base on that move. It did not take; INFY sold back with the market into the current base. The split is coming on in less than two weeks, and INFY showed some strong momentum as it broke higher to end June. Now this lateral move is setting up the next move higher, the run toward the split. Ready to make a run for a 6 year high.
Volume: 378.62K Avg Volume: 981.317K
BUY POINT: $78.68 Volume=1.2M Target=$85.95 Stop=$76.45
POSITION: IUN HO - Aug. $75c (55 delta) or IUN JP - Oct. $80c (45 delta)
http://www.investmenthouse.com/ci/infy.html

Play Date: 07/06/2006
TEX (Terex--$99.36; +0.40; optionable): Big earth moving machinery. Splits 2:1 on 7-17-06
http://biz.yahoo.com/p/t/tex.html
STATUS: Double bottom w/handle. Took some nice gain this week on the play after TEX rallied in late June and then showed signs of stalling after gapping higher Monday and then with the missile news Wednesday. It held up, however, working laterally the past two sessions, forming a handle to its 8 week base that formed at the 50 day EMA (88.88). After this lateral move that gives it some rest TEX will be ready to run again toward the split. Solid leader setting up for more.
Volume: 477.6K Avg Volume: 880.008K
BUY POINT: $99.78 Volume=900K Target=$109.90 Stop=$96.00
POSITION: TEX HT - Aug. $100c (52 delta)
http://www.investmenthouse.com/ci/tex.html

New buy point on current position:

Play Date: 07/06/2006
EEFT (Euronet Worldwide--$37.14; -0.01; optionable): Payment systems
http://biz.yahoo.com/p/e/eeft.html
After Hours: $37.11
STATUS: Breakout test. EEFT moved well for us to end June and is now testing that break higher, forming a handle to its 15 week cup with handle base. Nice test of the 10 day EMA (36.62) this week, showing a doji above that level Thursday as volume started back toward average. Strong money flow is holding tough during this test. Solid, and on a move back up on volume it is giving us a new entry point.
Volume: 402.012K Avg Volume: 380.692K
BUY POINT: $37.65 Volume=500K Target=$43.00 Stop=$36.57
POSITION: HSQ KG - Nov. $35c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/eeft.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.

us stock market
stock watch