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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ALSK; AMX; BMRN; DRIV; FSL; FTO; LMNX; MOLX; NVLS; SHOO; WEBX
Weekend play results:
ANEN: Jumped higher but closed well off the high
ASMI: Volume bumped higher as it prepares to make the move.
BRCM: Doji at the 50 day EMA. Still looks ready
PFWD: Dumped lower.
SPY: Nice break higher off the 10 day EMA
COHR: Still forming the handle.
DRIV: Good jump off the 18 day EMA on rising trade
New Plays:
Upside:
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/cdiig.html
Play Date: 08/28/2006
MW (Mens Wearhouse--$35.60; +0.96; optionable): If you don't look good, they don't look good
http://biz.yahoo.com/p/m/mw.html
STATUS: Breakout test. MW exploded out of a 15 month base two weeks back on strong volume as it reported blowout sales. It gapped higher and surged only to almost immediately turn back and fill the gap, holding the 18 day EMA (34.54) to end last week, then bouncing Monday. Strong 6 to 1 accumulation (6 up price weeks on rising volume to 1 down price weeks on rising volume) in the last 6 months shows nearly all buying. Strong money flow complements the strong accumulation. On a bit more volume on the rebound it is ready.
Volume: 451.7K Avg Volume: 646.575K
BUY POINT: $35.89 Volume=650K Target=$41.35 Stop=$34.42
POSITION: MW KG - Nov. $35c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/mw.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/cd/molx.html
Play Date: 08/28/2006
IDTI (Integrated Device Tech--$17.00; +0.17; optionable): Semiconductors
http://biz.yahoo.com/p/i/idti.html
STATUS: Breakout test. IDTI is working laterally the past week in a tightening range above the 10 day EMA (16.81), preparing for the next break higher in its continuing breakout run. It broke higher in early August out of a 17 week base and rallied up the 10 day EMA. It got a bit ahead of that support and faded back on low volume. It has held as the 10 day EMA moves up to meet it. Strong money flow is surging higher ahead of price, and we are looking for IDTI to follow it.
Volume: 2.236M Avg Volume: 4.444M
BUY POINT: $17.32 Volume=4.5M Target=$19.95 Stop=$16.71
POSITION: ITQ KW - Nov. $17.50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/idti.html
Continuing plays still ready to move: These are still ready
Play Date: 08/26/2006
ASMI (ASM International--$17.25; +0.12; optionable): Chip equipment
http://biz.yahoo.com/p/a/asmi.html
STATUS: Double bottom w/handle. Volume moved higher Monday as ASMI held the 200 day SMA (17.08) on the test and is starting back up. Looks ready to make the move. To recap: Excellent handle formed last week with a tight, low volume pullback to the 200 day SMA 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: 108.044K 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/cd/asmi.html
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/cd/brcm.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
AAPL, AKAM, CCJ, CELG, FLR, GME, MGPI, MRVL, NVDA, SGMS, WM
AAPL: Faded back to the 200 day SMA on rising though still below average volume
AKAM: Good volume as AKAM rebounded off the 18 day EMA.
CELG: Coming back to test the 18 day EMA and the 90 day MA (43.51) on rising but still below average volume. Critical test coming here.
NVDA: Got an upgrade and rallied to 28.17 but could not hold all the move though nice trade.
Good Investing!
Jon L. Johnson and The Daily Staff
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 of 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 recommendation
stock market recommendation
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