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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: AAPL; AEM; CAM; DRIV; EZPW; FSL; HYSL; IDXX; MGI; ORCL; SHOO
Weekend play results:
AKAM: Good volume as AKAM started higher once more
BOOM: Starting the move once more after the test.
EZPW: Nice break higher.
FORM: Gapped higher, not waiting to make a test of the 10 day EMA.
PPDI: Still setting up for the break higher
PQ: Faded to the 10 day EMA, but still ready to move.
New Plays:
Upside:
Play Date: 09/05/2006
DRQ (Dril-Quip--$80.09; +2.09; optionable): Engineered offshore drilling and production equipment
http://biz.yahoo.com/p/d/drq.html
STATUS: Test trendline. DRQ has tested the trendline (77), tapping it on the Tuesday low once more and bouncing on rising though still below average volume. It was energized by the CHV Jack extension well, rallying up to the 50 day SMA (80.26) Tuesday where it stalled out for the day. This is its fourth bounce higher on this trend and stocks usually present 4 to 5 such bounces. Looking to play this move but want to see some more volume as it continues higher.
Volume: 339.3K Avg Volume: 453.138K
BUY POINT: $80.38 Volume=500K Target=$95.00 Stop=$77.00
POSITION: DRQ LP - Dec. $80c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/drq.html
Play Date: 09/05/2006
LIFC (Lifecell--$30.78; +0.76; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
STATUS: Double bottom w/handle. LIFC is setting up for the breakout to a new all-time high, forming up a nice 9 week base along the 50 and 90 day MA (28.31 and 28 respectively). It made three higher lows and then cleared some resistance last week on some strong, above average volume. Just as it was getting going it was downgraded on Thursday; success has its price as stocks near new highs are targets for those waiting to downgrade and show how tough they still are after recommending stocks to buy in 2000 as they were going down. In any event, a nice recovery off a quick test of the 10 day EMA (29.65) and LIFC is ready to move up again. Positive accumulation and strong fundamentals growth rates. Looking for volume to jump back up as it makes the next move.
Volume: 518.633K Avg Volume: 859.518K
BUY POINT: $31.24 Volume=1M Target=$36.50 Stop=$29.42
POSITION: QKL LF - Dec. $30c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/lifc.html
Play Date: 09/05/2006
PFWD (Phase Forward--$12.00; +0.29; no options): Integrated enterprise software
http://biz.yahoo.com/p/p/pfwd.html
STATUS: Cup. PFWD has formed something of a cup or a reverse hand and shoulders the past 14 weeks, but whatever you want to call it, the stock is set up quite nicely to break higher. It used the 200 day SMA (10.77) as support for the two shoulders, breaking higher last week up to the neckline at 12, but lacked the volume to punch on through. Tuesday volume jumped above average for the first time in 5 weeks as PFWD banged up into the breakout point. Money flow is surging higher ahead of price and accumulation is an excellent 5 to 1 (5 up price weeks on rising volume to 1 down price weeks on rising volume); plenty of buying that is ready to break the stock higher for a run at, yes, a new all-time high.
Volume: 270.585K Avg Volume: 212.215K
BUY POINT: $12.25 Volume=275K Target=$14.00 Stop=$1.42
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/pfwd.html
New buy points on current positions:
Play Date: 09/05/2006
AAPL (Apple Computer--$71.48; +3.10; optionable): iPods, iMacs, and soon to come iTV?
http://biz.yahoo.com/p/a/aapl.html
STATUS: Reverse head and shoulders. Nice breakout once more Tuesday as AAPL cleared 70 on strong, above average volume. The company announced it is ready for movie downloads with Amazon and that helped the nice breakout from its 5 month base. Nice lateral move the past two weeks over the 200 day SMA (66.77) set up the next move, and that gave it the foundation to make the break higher. Money flow is running higher ahead of price and we are ready to add some positions as it continues.
Volume: 36.049M Avg Volume: 29.065M
BUY POINT: $71.65 Volume=29M Target=$79.95 Stop=$69.82
POSITION: QAA AE - Jan. $72.50c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/aapl.html
Play Date: 09/05/2006
NVDA (Nvidia--$28.50; +0.61; optionable): Semiconductors
http://biz.yahoo.com/p/n/nvda.html
STATUS: Breakout test. Going back to the well again on this market leader as it comes back to once more test the 10 day EMA (27.74) and starts to bounce. This is the second move off of this level since breaking out of its 14 week cup with handle base in mid-August. Strong stocks such as this usually give us 4 to 5 such runs so we are looking to move in as it continues the bounce off the 10 day it started Tuesday.
Volume: 9.077M Avg Volume: 10.412M
BUY POINT: $28.72 Volume=10M Target=$32.95 Stop=$27.68
POSITION: UVA LY - Dec. $27.50c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/nvda.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
stock recommendation
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