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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CELG; ININ; SIE; RTI
Thursday night play results:
CHRW: Still in the nice test of the breakout
FORM: Also still a nice breakout test
INFY: Working on the handle, setting up the split run
TEX: Working laterally, forming the handle. Excellent strength
EEFT: Faded a bit more, still testing on lower volume.
New Plays:
Upside:
Play Date: 07/08/2006
ALJ (Alon USA Energy--$33.63; +1.41; optionable): Oil and gas refining
http://biz.yahoo.com/p/a/alj.html
After Hours: $33.60
Earnings: Second week August
STATUS: Double bottom w/handle. Strong volume surge Friday as ALJ tested the breakout waters from its 9 week base formed using the 50 day EMA (29.64) as the lows for the two legs. Strong 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows a lot of buying during the base as investors accumulate the shares. A new issue in July 2005, this is ALJ's second base, and that gives it plenty of room upside and we don't have to worry so much about a break higher just to fold and fall back on us. Relative strength ready for the breakout with the stock price, a good corroboration of the stock's strength.
Volume: 594.8K Avg Volume: 311.987K
BUY POINT: $34.05 Volume=400K Target=$40.00 Stop=$31.95
POSITION: ALJ IF - Sept. $30c (64 delta) or ALJ LG - Dec. $35c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/alj.html
Play Date: 07/08/2006
RS (Reliance Steel--$81.11; -0.56; optionable): Steel. Splits 2:1 on 7-20-06
http://biz.yahoo.com/p/r/rs.html
Earnings: 7-20-06
STATUS: Cup w/handle. Kind of a skewed pattern, but a nice handle formed last week as RS faded back from its late June move, holding above the 50 day EMA (80.01) as it made the test. Nice test to its 8 week base that formed after RS had to correct back following the commodity spring higher in Q1. The steel is ready to pour after this test.
Volume: 727.8K Avg Volume: 672.567K
BUY POINT: $81.89 Volume=1M Target=$93.95 Stop=$79.86
POSITION: RS LQ - Dec. $85c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/rs.html
Play Date: 07/08/2006
RSTI (Rofin-Sinar Tech--$58.00; -0.38; optionable): Laser-based products.
http://biz.yahoo.com/p/r/rsti.html
Earnings: 8-3-06
STATUS: Double bottom with handle. After a strong run in Q4 2005 and Q1 this year RSTI needed a breather. The current 9 week base that formed to consolidate the move is solid. Last week RSTI faded back on lower volume, consolidated the strong late June run higher. Strong market leader that used the market selling to set up the next break higher.
Volume: 125.355K Avg Volume: 118.321K
BUY POINT: $58.89 Volume=177K Target=$67.95 Stop=$57.33
POSITION: QRT LL - Dec. $60c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/rsti.html
Play Date: 07/08/2006
WCC (Wesco International--$66.67; -0.53; optionable): Electrical supplies and equipment
http://biz.yahoo.com/p/w/wcc.html
Earnings: 7-20-06
STATUS: Cup w/handle. Similar pattern from a market leader: strong run February to early May, then a test the past 8 weeks to set up the new base. Strong surge to end June, test last week on lower volume to form the handle. See? Same story for many leaders; that is why we like the prospects of a bounce back up. Positive accumulation shows buying during the base, setting up the next run of electrical supplies.
Volume: 592.3K Avg Volume: 901.192K
BUY POINT: $67.84 Volume=1.4M Target=$81.00 Stop=$65.65
POSITION: WCC JN - Oct. $70c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/wcc.html
Play Date: 07/08/2006
ZUMZ (Zumiez--$35.28; -1.25; optionable): Apparel stores
http://biz.yahoo.com/p/z/zumz.html
Earnings: Mid-August
STATUS: Test breakout. ZUMZ zoomed higher to end June, moving on strong volume to 38 as it broke out from an 8 week base that consolidated a strong 6 month run. This is ZUMZ's second base since coming public in May 2005. This is a key point for retail: it is still in its growth stage, opening stores and expanding. Want to pick it up off of this test of the 10 day EMA and the breakout.
Volume: 460.555K Avg Volume: 376.69K
BUY POINT: $35.94 Volume=500K Target=$43.00 Stop=$34.65
POSITION: QUY KG - Nov. $35c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/zumz.html
New buy point on current position:
Play Date: 07/08/2006
RMD (Resmed--$47.28; -0.47; optionable): Medical appliances for sleep disordered breathing, etc.
Earnings: Early August
http://biz.yahoo.com/p/r/rmd.html
STATUS: Test breakout. RMD broke higher in late June, completing its 8 week cup. It is now forming the handle, using last week's selling on low volume to test the move and set up the next break higher to a new all-time high. Strong money flow is leading. Relative strength broke out on the move. After this rest it is ready for more; don't expect it to go to sleep here.
Volume: 265.6K Avg Volume: 423.864K
BUY POINT: $48.05 Volume=450K Target=$53.85 Stop=$46.55
POSITION: RMD JI - Oct. $45c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/rmd.html
Continuing play ready to move:
Play Date: 06/30/2006
IDEV (Indevus Pharmaceuticals--$5.65; +0.09; optionable): Biotechnology
http://biz.yahoo.com/p/i/idev.html
After Hours: $5.75
Earnings: First week August
STATUS: Reverse head and shoulders. IDEV gapped higher Friday on stronger, above average volume, but it could not do much with it. It did test the break higher intraday, so it is locked and loaded to move higher from here. If it makes the move we are going to be in there with it.
Volume: 1.296M Avg Volume: 552.079K
BUY POINT: New: $5.72 (orig. $5.62) Volume=550K Target=$6.95 Stop=$5.23
POSITION: QUF LA - Dec. $5c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/idev.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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