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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: DRQ; NGPS; PETD; VTIV; EXPD; XPRSA
Thursday night play results:
DRIV: Shot higher early but could not hold the move
CRI: Faded but managed a modest rebound. Still below the 10 day EMA
EXPD: Selling further and on rising volume
JEF: Gapped lower and stayed down.
WEBX: Not much volume but moving up off the 10 day EMA test.
New Plays: Some stocks that can move fast and set up to do just that to move for us in the next market run.
Upside:
Play Date: 08/26/2006
ANEN (Anaren--$21.18; +0.89; optionable): Microwave and radio frequency components for wireless telecom, satellite, defense, etc.
http://biz.yahoo.com/p/a/anen.html
STATUS: Reverse head and shoulders. ANEN is setting up for a 5 year high, moving toward the breakout from an 11 week base sporting strong 4 to 2 accumulation (4 up price weeks on rising volume to 2 down price weeks on rising volume). Good close to the week, moving higher on rising volume after a good hold at the 10 day EMA (20.19) as it tested the move from the prior week. Money flow is leading higher, and ANEN is in position for a nice, fast run for us this week.
Volume: 103.278K Avg Volume: 153.031K
BUY POINT: $21.45 Volume=230K Target=$24.89 Stop=$20.05
POSITION: EVB AD - Jan. $20c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/anen.html
Play Date: 08/26/2006
ASMI (ASM International--$17.13; -0.01; optionable): Chip equipment
http://biz.yahoo.com/p/a/asmi.html
STATUS: Double bottom w/handle. Excellent handle formed last week with a tight, low volume pullback to the 200 day SMA (17.06) after surging through that level two weeks back on strong volume. Nice handle to the 16 week base, holding the 200 day SMA and ready to follow the rising money flow higher. Plenty of room to run upside, and it can do it quickly as demonstrated on the last two legs higher; just what we want for this week.
Volume: 34.673K Avg Volume: 194.685K
BUY POINT: $17.55 Volume=285K Target=$20.97 Stop=$16.95
POSITION: IQB LW - Dec. $17.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/asmi.html
Play Date: 08/26/2006
CVD (Covance--$63.01; +0.01; optionable): Drug development services
http://biz.yahoo.com/p/c/cvd.html
STATUS: Ascending base. A solid market leader, pinching off in its 18 week base, ready to breakout to a new all-time high. Excellent formation, making higher lows above the 50 day EMA (61.60) below some resistance at 63. Low volume during the last stage of this base; good, but now we want to see it jack up as it makes the break higher as that shows us the big boys accumulating it are joined by others wanting a piece of the action. That gives us the strong surge that can put money in our pocket quickly. Solid 5 to 3 accumulation in the pattern shows the buyers want it. Ready to follow the money flow higher.
Volume: 199.3K Avg Volume: 488.175K
BUY POINT: $63.89 Volume=732K Target=$71.88 Stop=$62.22
POSITION: CVD AM - Jan. $65c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/cvd.html
Play Date: 08/26/2006
HLEX (Healthextras--$29.64; +1.11; optionable): Pharmacy benefit management
http://biz.yahoo.com/p/h/hlex.html
STATUS: Cup. A perennial leader, HLEX enjoyed a strong 2005 through Q1 2006 and then finally had to base out. It has spent almost 6 months doing just that, coming off the bottom of its base, the final tap lower, in late July and early August. It rallied, then bunched up below the 200 day SMA (28.79) the past week, and then exploded through the 200 day Friday on strong, above average volume. Excellent action and we are ready to move into positions as HLEX continues its move higher. Plenty of upside room to run in the base and make us a nice gain without ever having to get past the March high in the pattern. Positive accumulation already in the base, a good sign that it is only going to get better as it rallies to form the right side of its base.
Volume: 365.545K Avg Volume: 235.349K
BUY POINT: $30.31 Volume=300K Target=$36.00 Stop=$28.54
POSITION: HUE LF - Dec. $30c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/hlex.html
Play Date: 08/26/2006
SPY (S&P Depository Receipts--$129.81; +0.16; optionable)
http://biz.yahoo.com/p/s/spy.html
After Hours: $129.85
STATUS: Double bottom w/handle. Matching the large cap index, SPY made a nice low volume pullback tot eh 10 day EMA (129.45) last week, testing the strong move higher and setting up the next leg up this week. We are looking for a run up to the prior high before any trouble sets in. A move to the target lands a 43%ish gain.
Volume: 41.758M Avg Volume: 80.535M
BUY POINT: $130.04 Volume=80M Target=$132.60 Stop=$129.39
POSITION: SFB JZ - Oct. 130c (56 delta)
http://www.investmenthouse.com/ci/spy.html
Current plays ready to move:
Play Date: 08/21/2006
BRCM (Broadcom--$28.54; -0.40; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $28.58
STATUS: Test 50 day EMA. Locked and loaded, holding above the 50 day EMA (28.36) last week in a nice low volume test after blasting through that level two weeks back on strong volume. Broke its downtrend, broke the 50 day EMA, and now rested. Ready to move in as it rebounds. If the market moves well, we can even get aggressive and get in a bit lower in price than the original buy point. This may be a very good long term entry point for BRCM as well. We will just have to see how it plays out after the market makes this next run.
Volume: 9.157M Avg Volume: 17.123M
BUY POINT: Aggressive: $29.15 (orig. $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: 08/19/2006
CTSH (Cognizant Technology--$69.08; -0.62; optionable): Custom IT software
http://biz.yahoo.com/p/c/ctsh.html
After Hours: $68.92
STATUS: Breakout test. Nice, low volume lateral fade to the 10 day EMA (69.15) last week, testing the strong move higher two weeks back that took it to eh prior high near 71. Holding close to that level, and ready to use the 10 day EMA near support as the launch point for the next move to a new all-time high. Perennial market leader ready to lead on this next move higher.
Volume: 971.928K Avg Volume: 1.501M
BUY POINT: Aggressive: $69.85. Breakout: $71.11 Volume=1.8M Target=$79.00 Stop=$68.22
POSITION: UPU AN - Jan. $70c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/ctsh.html
Play Date: 08/24/2006
DRIV (Digital River--$46.43; -0.57; optionable): e-commerce outsourcing solutions
http://biz.yahoo.com/p/d/driv.html
STATUS: Breakout test. Tried the move Friday, but no volume and it faded back, but still holding easily above the 18 day EMA (45.92). Nice breakout, nice test, just needs the market to come with it. To recap: DRIV made us some nice money on the last breakout 2 weeks back from its 14 week double bottom with handle base. Strong volume on that move and a low volume test this week, back to the 18 day EMA Thursday, rebounding back up from that test lower on rising, average volume. Strong money flow remains. Like the strong rebound back up to the 10 day EMA after the test. The higher volume shows buyers coming back in. Looks ready to continue the breakout move.
Volume: 619.043K Avg Volume: 985.783K
BUY POINT: $47.55 Volume=1.2M Target=$54.75 Stop=$45.85
POSITION: DQI LI - Dec. $45c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/driv.html
Other continuing plays ready for the week:
CERN
COHR
PLCM
VIP
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
stock recommendation
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