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us stock market, trade stock
Begin part 3 of 3
THE PLAYS
Good movers: ABAX; AMX; DRIV; FSL; GILD; HMSY; MOLX; NITE; NVLS; TZOO; WEBX
Strong plays:
1) MOLX: Nice break higher on volume.
2) IDXX: Breaking higher from a nice consolidation.
3) IIG: Excellent pattern from this leader.
4) BRCM: About as ready as it can get.
5) HLEX: Took the day off but still ready to move higher.
6) PRXL: Nice. Starting the move off the 18 day EMA.
NEW PLAYS:
Upside plays:
Play Date: 08/28/2006
IDXX (Idexx Labs--$91.67; +1.98; optionable): Diagnostic substances
http://biz.yahoo.com/p/i/idxx.html
After Hours: $91.84
STATUS: Flying plateau. IDXX exploded higher in late July on strong volume as it reported blowout earnings. It then moved laterally the past three weeks over the 10 day EMA (89.39), consolidating and setting up the next leg higher. Money flow continues to run higher and now relative strength is breaking out as IDXX breaks higher as well. Ready to step in as IDXX runs to 100; a strong stock will close out the deal on the way to 100 after it clears 90.
Volume: 254.443K Avg Volume: 153.131K
BUY POINT: $91.94 Volume=155K Target=$99.00 Stop=$89.25
POSITION: UID AR - Jan. $90c (63 delta)
http://www.investmenthouse.com/ct/idxx.html
Play Date: 08/28/2006
IIG (Imergent--$14.90; +0.36; optionable): e-commerce technology, training, various web-based technologies
http://biz.yahoo.com/p/i/iig.html
STATUS: Saucer with handle. The current 4 month base is forming the handle to a 20 month base. This last base is a nicely formed saucer over the 50 day EMA (13.49), using that key support to set up for the breakout. Important level because the institutions add shares at this level. The 5 to 2 accumulation (5 up price weeks on rising volume to 2 down price weeks on rising volume) shows they are doing just that. One of the top stocks in its sector and looks ready to get the move on here.
Volume: 110.6K Avg Volume: 112.128K
BUY POINT: $15.12 Volume=168K Target=$18.25 Stop=$14.44
POSITION: IIG AC - Jan. $15c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/iig.html
Play Date: 08/28/2006
MVSN (Macrovision--$23.11; +0.15; optionable): Digital lifecycle value management software
http://biz.yahoo.com/p/m/mvsn.html
STATUS: Double bottom w/handle. Sweet little 15 week pattern has formed over the 200 day SMA (20.03), using that as support for the two legs in its double bottom. Big surge on volume in mid-August formed the right leg as it reported strong earnings, and now the lateral test the past week, forming the handle that shakes out the sellers from the last run . Volume jumped back above average Monday as MVSN tapped at the 10 day EMA (22.59) on the low and rebounded. Looks ready for the breakout move.
Volume: 1.115M Avg Volume: 660K
BUY POINT: $23.65 Volume=990K Target=$26.75 Stop=$22.48
POSITION: MVU AX - Jan. $22.50c (59 delta) &/or Stock
http://www.investmenthouse.com/ct/mvsn.html
Play Date: 08/28/2006
PLMD (Polymedica--$39.29; +0.24; optionable): Drug manufacturers
http://biz.yahoo.com/p/p/plmd.html
STATUS: Cup w/handle. Similar to many stocks, PLMD faded last week to test a strong break higher on solid trade. Nice handle to an 18 week base, setting up for a break higher. Positive accumulation and strong money flow holding tough as PLMD tests back, holding the 18 day EMA (39.14) on the lows the past week. Nice test with plenty of room to the upside (April high in the base is at 46) to give us a nice gain on the rebound and rally toward a new all-time high.
Volume: 138.388K Avg Volume: 281.919K
BUY POINT: $39.68 Volume=423K Target=$45.75 Stop=$38.55
POSITION: PM LH - Dec. $40c (50 delta) &/or Stock
http://www.investmenthouse.com/ct/plmd.html
New buy points on current positions:
Play Date: 08/28/2006
MOLX (Molex--$36.28; +1.58; optionable): Micro-miniature connectors, etc.
http://biz.yahoo.com/p/m/molx.html
STATUS: Test breakout. MOLX blasted higher two weeks back, moving out of a 14 week reverse head and shoulders base, tested with the market the past week, holding the 18 day EMA (34.59) on the low. It then exploded higher Monday on the best volume in three weeks. Surging money flow, great pattern, etc. Blasting higher and ready to move in as it continues.
Volume: 766.006K Avg Volume: 556.748K
BUY POINT: $36.40 Volume=550K Target=$40.95 Stop=$35.00
POSITION: OXQ KG - Nov. $35c (67 delta) &/or Stock
http://www.investmenthouse.com/ct/molx.html
CONTINUING PLAYS:
Upside:
Play Date: 08/21/2006
BRCM (Broadcom--$28.70; +0.16; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $28.69
STATUS: Test 50 day EMA. Very tight doji Monday on continued below average volume. Crouched, poised to bounce, ready to blast off, etc. Call it what you want, we are waiting for the move and it looks to be setting up a strong one. To recap: Locked and loaded, holding above the 50 day EMA (28.38) 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. History: 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. Has made the test of the 50 day EMA, and now looking for the bounce higher. 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: 8.347M 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/ct/brcm.html
Play Date: 08/22/2006
COHR (Coherent--$35.49; +0.07; optionable): Lasers, precision optics
http://biz.yahoo.com/p/c/cohr.html
STATUS: Double bottom w/handle. Still in the pullback, forming the handle on very low volume. Nice. Now it can show us the breakout. To recap: Nice lateral move 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: 97.883K Avg Volume: 249.898K
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/ct/cohr.html
Play Date: 08/26/2006
HLEX (Healthextras--$29.91; +0.27; optionable): Pharmacy benefit management
http://biz.yahoo.com/p/h/hlex.html
STATUS: Cup. Gapped higher but volume was lower as HLEX tapped at the buy point but backed off. Good day of rest after the strong Friday move. To recap: 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 (28.84) 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: 202.194K 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/ct/hlex.html
Play Date: 08/26/2006
INFA (Informatica--$14.58; +0.28; optionable): Enterprise data integration software
http://biz.yahoo.com/p/i/infa.html
STATUS: Reverse head and shoulders. Bounced on rising volume, heading toward the breakout. It is ready. To recap: Nice price move Friday as INFA moves toward the breakout from its 13 week reverse head and shoulders that formed at the bottom of its 20 week cup base. Nicely formed pattern with plenty of upside without a breakout and the ability to move quickly when it breaks out, just what we want for this week.
Volume: 735.363K Avg Volume: 1.344M
BUY POINT: $14.71 Volume=2M Target=$16.95 Stop=$13.68
POSITION: UYF AC - Jan. $15c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/infa.html
Play Date: 08/19/2006
PRXL (Parexel Intl.--$31.82; +0.51; optionable): Biopharma services company
http://biz.yahoo.com/p/p/prxl.html
STATUS: Breakout test. Another nice tap of the 18 day EMA (31.17) Monday and then a bounce higher on rising trade. Just about ready to make the move. To recap: Just an excellent pullback from the strong break higher two weeks back, holding at the 18 day EMA near support Thursday and Friday to end last week. It is ready to go, just needs the trigger. Strong break higher on strong volume on 8-14-06 as PRXL moved out of a 14 week cup base. Strong surge, nice test and ready for more upside from this market leader.
Volume: 166.697K Avg Volume: 247.298K
BUY POINT: $32.05 Volume=285K Target=$36.95 Stop=$31.31
POSITION: VBQ LF - Dec. $30c (67 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/prxl.html
Play Date: 08/26/2006
RTEC (Rudolph Technologies--$17.34; +0.37; optionable): Defect inspection systems for semiconductor manufacturing
http://biz.yahoo.com/p/r/rtec.html
STATUS: Breakout test. Bounced off the 18 day EMA (16.67) Monday, but this volume was just too small. Needs to show a bit more trade and it is a buy as it continues higher. To recap: RTEC shot higher two weeks back in the overall rally in chips when they broke their downtrend. The move took it out of a 13 week cup with handle base, but the selling last week brought it all the way back to test the move. Low volume taps at the 18 day EMA Thursday and Friday and then a recovery to hold the breakout worked as the last shakeout. Strong money flow is leading higher, a good complement to the positive accumulation. Set up to make a nice, fast move higher for us.
Volume: 147.202K Avg Volume: 345.258K
BUY POINT: New: $17.45 (orig. $17.31) Volume=500K Target=$20.75 Stop=$16.44
POSITION: UXH KW - Nov. $17.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ct/rtec.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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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