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us stock market, top stock pick
Begin part 3 of 3
THE PLAYS
Good movers: FTO; OII; SLB; RTI; STTX
Thursday night play results:
FTO: Nice volume and nice move up
ICE: Ready to move
SU: Still holding solid at the 50 day EMA in the handle
CX: Heading lower on rising volume.
STTX: Strong volume shot as STTX moves further down.
New Plays:
Upside:
Play Date: 07/15/2006
FTI (FMC Technologies--$69.50; +1.76; optionable): Oil and gas service company
http://biz.yahoo.com/p/f/fti.html
Earnings: 7-25-06 after the close
STATUS: Double bottom w/handle. Setting up for a new all-time high after a strong late 2005, early 2006 run. Needed the consolidation to recover, set up and prepare for the next run. Outstanding 5 to 1 accumulation in the pattern (5 up price weeks on rising volume to 1 down price weeks on rising volume) shows excellent buying even during the consolidation. Big money continues moving in as it sets up for the next run. A top stock in the market, just going to let it continue setting up the handle and breaking higher.
Volume: 954.9K Avg Volume: 1.045M
BUY POINT: $71.21 Volume=1.6M Target=$85.00 Stop=$68.00
POSITION: FTI JN - Oct. $70c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/fti.html
Play Date: 07/15/2006
GLG (Glamis Gold--$37.15; +0.36; optionable): Gold
http://biz.yahoo.com/p/g/glg.html
Earnings: 7-31-06
STATUS: Double bottom w/handle. Familiar pattern in this market with the up and down action, but these are the patterns that form during this type of 'scare them out' market action. It has not moved higher during all of the international intrigue, but it has continued forming its base on low, below average volume. Ignoring the action, working on its pattern. Looking for a volume breakout move to send it on its next run.
Volume: 1.254M Avg Volume: 2.422M
BUY POINT: $38.25 Volume=3M Target=$45.95 Stop=$36.15
POSITION: GLG KG - Nov. $35c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/glg.html
Play Date: 07/15/2006
GNA (Gerdau Ameristeel--$10.05; +0.05; optionable): Steel and iron
http://biz.yahoo.com/p/g/gna.html
Earnings: 8-2-06
STATUS: Double bottom w/handle. Another double bottom with handle, the pattern the strong stocks are forming in this market. GNA is working on the handle of its 10 week base, tapping the 18 day EMA on the Friday low (9.74) and rebounding. Good shakeout action in the handle as we wait for GNA to show us the volume breakout. It looked ready early last week with some strong trade, but the international action kept the lid on it Ready to move.
Volume: 310K Avg Volume: 414.722K
BUY POINT: $10.38 Volume=622K Target=$12.50 Stop=$9.68
POSITION: GNA LB - Dec. $10c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/gna.html
Play Date: 07/15/2006
MED (Medifast--$18.42; -0.03; optionable): Nutrition products
http://biz.yahoo.com/p/m/med.html
Earnings: Mid-August
STATUS: Test 18 day EMA. Solid earnings and sales growth pushed MED higher in Q1 and Q2, rallying to 20 on the move. It needed a breather and spent the past 6 weeks moving laterally, consolidating the gains above the 50 day EMA (16.44). A solid bounce off of that support in late June sent it back to 20, and in the market selling this month MED has eased back to the 18 day EMA (18.50) on low, below average volume. Making a higher low at that level with a nice, orderly and tight pullback. That action often leads to the next break higher. A top stock in the market in terms of fundamentals growth and pattern.
Volume: 467.8K Avg Volume: 958.928K
BUY POINT: $19.55 Volume=1.4M Target=$23.50 Stop=$18.18
POSITION: MED LD - Dec. $20c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/med.html
Play Date: 07/15/2006
PPDI (Pharmaceutical Product Dev.--$36.33; -0.17; optionable): Medical labs
http://biz.yahoo.com/p/p/ppdi.html
Earnings: 7-17-06 after the close
STATUS: Flat base. PPDI is working in a 12 week trading range between 34 and 38, trading around the 50 day EMA (35.60) after gapping higher in mid-April on strong earnings. Outstanding 4 to 0 accumulation in the pattern (4 up price weeks on rising volume to 0 down price weeks on rising volume) shows excellent buying as it consolidates laterally, waiting for the buying to send it higher. It is making a higher low on this rotation, tapping at the 50 day the past two sessions on the intraday low and then rebounding. In a trading range, a higher low after a few rotations typically announces a breakout ahead. Given the strong accumulation and the surging money flow along with the sector, this is looking very good here.
Volume: 520.496K Avg Volume: 676.348K
BUY POINT: $37.38 Volume=1M Target=$43.95 Stop=$35.78
POSITION: PJQ JU - Oct. $37.50c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/ppdi.html
New buy point on current position:
Play Date: 07/15/2006
EZPW (Ezcorp--$38.86; -1.45; optionable): Pawn shops, check cashing
http://biz.yahoo.com/p/e/ezpw.html
After Hours: $38.80
Earnings: 7-25-06
STATUS: Breakout test. We have already banked some strong gain with EZPW, and it is setting up to rebound and makes us more. Strong gap higher in late June sent EZPW out of a 10 week double bottom base that formed on top of the 50 day EMA (34.81). It rallied to 44 on the breakout move, leading higher in a weak market. The gains caught up with it last week when the international news was finally too much for it as well. It sold off with a couple of gaps lower Thursday and Friday, reaching well below the 18 day EMA (38.64) Friday before rallying back to hold that level on the close. That shows us that the buyers pushed back in and scooped up shares when this leader dipped. Going to be patient and let the test complete and then pick it up on the rebound. We don't think that will be too far off.
Volume: 903.35K Avg Volume: 467.089K
BUY POINT: $40.33 Volume=701K Target=$48.00 Stop=$38.38
POSITION: ULP LH - Dec. $40c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/ezpw.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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us stock market
top stock pick
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