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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: NUAN; RS; XPRSA
Tuesday night play results:
COHR: Another doji over the 10 day EMA.
DKS: Still working on the nice handle
PCAR: Nice test of the 18 day EMA has set up the rebound
PLCM: Still at the 10 day EMA test
WEBX: Dropped to test the 10 day EMA on low volume.
New Plays:
Upside:
Play Date: 08/23/2006
CERN (Cerner--$45.36; +0.07; optionable): Health information systems
http://biz.yahoo.com/p/c/cern.html
STATUS: Double bottom w/handle. Split to start the year, moved laterally through March, trying to set up a base, but failed, tumbling lower into May and July, where it made two legs to its 5 month base. Nice rally back in late July and early August, spending the last week pulling back to form the handle, tapping back at the 10 day EMA (44.85) on very low, below average volume. Very nice fade to shake out the last sellers. Looking for volume to jump back in as CERN makes the breakout move.
Volume: 403.069K Avg Volume: 940.857K
BUY POINT: $46.58 Volume=1.4M Target=$53.55 Stop=$44.62
POSITION: CQN LI - Dec. $45c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/cern.html
New buy point on current positions:
Play Date: 08/23/2006
NVDA (Nvidia--$26.29; -0.02; optionable): Semiconductors
http://biz.yahoo.com/p/n/nvda.html
After Hours: $26.49
STATUS: Breakout test. A sweet pullback that never got out of control. Indeed on Wednesday it faded to the 10 day EMA (25.74) on low volume, then started to rebound into the close. A very nice 15 week base, and ready to break higher once more.
Volume: 8.081M Avg Volume: 10.402M
BUY POINT: $26.89 Volume=10M Target=$31.00 Stop=$25.65
POSITION: UVA LE - Dec. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/nvda.html
Play Date: 08/22/2006
WEBX (Webex Communications--$35.74; -0.98; optionable): Web conferencing, etc.
http://biz.yahoo.com/p/w/webx.html
After Hours: $35.52
STATUS: Test breakout. Another low volume test, though it plunked down a bit harder than we wanted. Nonetheless it held the 10 day EMA (35.52) rather easily, continuing the low volume pullback after the strong surge last week. Looking for a hold at the 10 day and then a rebound. May undercut early on but just about ready to rebound. To recap: Nice strong move last week allowed us to pocket some quick option gain, and now WEBX is making a low volume test of that move. It is not giving up much ground, a good sign of strength. Tapped at some support at 36 on the Tuesday low on very low volume (that is the highs in the pattern) and rebounded to close just negative. Looking for a bit more testing here toward 36, and then we will step back in when WEBX rebounds.
Volume: 406.549K Avg Volume: 677.185K
BUY POINT: $36.32 Volume=690K Target=$41.95 Stop=$35.35
POSITION: UWB LG - Dec. $35c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/webx.html
Current plays ready to move:
Play Date: 08/21/2006
BRCM (Broadcom--$28.85; +0.09; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $29.00
STATUS: Test 50 day EMA. Nice hammer doji right over the 10 day EMA (28.14) as BRCM continued its excellent pullback to test the break of its downtrend and then the move over the 50 day EMA (28.33). Nice test. Ready to move. To recap: It has been a long time since January when we bought a bunch of BRCM and it bolted higher on strong volume. That was just about the apex of its run and shortly after it topped and rolled over. BRCM broke through its 4 month downtrend this month, moving laterally with SOX and then breaking sharply higher last Tuesday and Wednesday. Strong volume on the upside move shows the buyers (short coverers and long buyers) were moving in force. It then eased back to end the week and did more of the same Monday, fading toward the 50 day EMA on lower volume, below average on Monday. Looking for a test of the 50 day EMA to set off the next move. This was a trend reversal move, and this is the first test of the stronger break higher. If it continues up from here on volume we know the buyers are back in.
Volume: 11.586M Avg Volume: 17.759M
BUY POINT: $29.75 Volume=20M Target=$36.00 Stop=$28.08
POSITION: RCQ AF - Jan. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.html
Play Date: 08/22/2006
COHR (Coherent--$35.58; -0.48; optionable): Lasers, precision optics
http://biz.yahoo.com/p/c/cohr.html
After Hours: $35.73
STATUS: Double bottom w/handle. Reached down below the 10 day EMA (35.32) on the low, tapping toward the 18 day EMA (34.52) and then rebounding sharply to hold the 10 day. Good volume shows buyers were moving in as it tested and rallied back. Excellent action. To recap: Nice lateral move and then the Wednesday dip as COHR consolidates the August run that formed the right leg of its 16 week base. Volume jumped sharply higher Tuesday as COHR showed a tight doji, holding the gains and well above the 10 day EMA. Positive accumulation and money flow going hand in hand as COHR sets up the next break higher. The leader in its sector.
Volume: 388.469K Avg Volume: 255.263K
BUY POINT: $36.74 Volume=350K Target=$43.00 Stop=$35.15
POSITION: HRQ AG - Jan. $35c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/cohr.html
Play Date: 08/19/2006
RBAK (Redback Networks--$18.25; -0.08; optionable): Telecom networking equipment
http://biz.yahoo.com/p/r/rbak.html
After Hours: $18.25
STATUS: Test 200 day SMA. Nice doji over the 200 day SMA (17.87) Wednesday on low, below average volume as RBAK continues testing the break above that key level. Excellent volume as it surged on the breakout on news of solid earnings and passing its options investigation. Nice test and looking to move in as it bounces on volume. Can move quickly and has room to run, just what we need as we look to profit from the next leg higher.
Volume: 1.655M Avg Volume: 2.363M
BUY POINT: $18.18 Volume=2.7M Target=$23.95 Stop=$17.72
POSITION: RBU LD - Dec. $20c (52 delta) or RBU LW - Dec. $17.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/rbak.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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