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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: SHOO; EXPD; JBLU
Tuesday night play results:
DRQ: Sold back to the trendline on rising, above average volume
LIFC: Low volume pullback toward the 10 day EMA, still working on the handle
PFWD: Dumped back to the 18 day EMA on very low volume. Still holding up, but we will see.
AAPL: Modest pullback
NVDA: Slipped through the 10 day EMA toward the 18 day EMA on very low volume. Still can give us a good bounce.
New Plays:
Upside:
Play Date: 09/06/2006
WRLD (World Acceptance--$40.09; -0.08; optionable): Credit services
http://biz.yahoo.com/p/w/wrld.html
STATUS: Double bottom w/handle. WRLD has formed a short accumulation pattern over the 50 day EMA (37.65), consolidating the nice move from mid-July to early August, the last run it its big breakout move from May when it cleared a 10 month cup base. Nice set up for a continued run. Want to see strong volume as WRLD breaks higher. A top stock in fundamentals growth.
Volume: 197.589K Avg Volume: 212.457K
BUY POINT: $40.72 Volume=319K Target=$48.00 Stop=$38.95
POSITION: DQX AH - Jan. $40c (54 delta, low OI) &/or Stock
http://www.investmenthouse.com/ct/wrld.html
Downside:
Play Date: 09/06/2006
PRAA (Portfolio Recovery--$39.24; -0.82; optionable): Buys then sells distressed properties
http://biz.yahoo.com/p/p/praa.html
STATUS: Put. PRAA double topped spanning January and May, then fell into the current downtrend. It broke below the 200 day SMA (45.48) in early July, breaking below the neckline in a head and shoulders that formed as part of that top. It is now bouncing down below the 18 day EMA (40.28), now making its third turn lower from that test. Volume jumped Wednesday as PRAA sold down from that resistance, indicating more selling to come. Looking to move in as PRAA continues its trend lower. A move to the target lands us a 45%ish gain.
Volume: 254.831K Avg Volume: 162.862K
BUY POINT: $39.11 Volume=165K Target=$37.05 Stop=$39.54
POSITION: PBB VH - Oct. $40p (-55 delta)
http://www.investmenthouse.com/ct/praa.html
Play Date: 09/06/2006
TTC (Toro--$39.58; -0.90; optionable): Lawnmowers, small tools
http://biz.yahoo.com/p/t/ttc.html
STATUS: Put. TTC is in a continuing downtrend after peaking in April on a climax surge. It formed a head and shoulders from March through June and then broke lower in early July, starting the continuing trend lower, bouncing down the 18 day EMA (40.24). It spent the last leg of the summer rally rebounding up to the 18 day resistance on lower and lower volume. It tried to break through Friday and Tuesday but then rolled over Wednesday on rising, though still below average volume. Looks ready to continue the trend lower after this low volume bounce higher, following tanking money flow lower. A move to the target lands us a 45%ish gain.
Volume: 375.6K Avg Volume: 438.418K
BUY POINT: $39.45 Volume=445K Target=$37.90 Stop=$39.95
POSITION: TTC VH - Oct. $40p (-50 delta)
http://www.investmenthouse.com/ci/ttc.html
Play Date: 09/06/2006
XPRSA (U.S. Xpress--$19.45; -1.10; optionable): Trucking
http://biz.yahoo.com/p/x/xprsa.html
STATUS: Head and shoulders. XPRSA has formed a broad top May through August, a bearish head and shoulders pattern that is starting the break lower on rising trade. XPRSA has already made us money as it set up this pattern. Wednesday XPRSA broke below the 200 day SMA (20.00), cracking below the neckline of the pattern. Looking to move in as XPRSA continues lower and follows the diving money flow lower. A move to the target lands us a 45%ish gain.
Volume: 187.639K Avg Volume: 241.066K
BUY POINT: $19.40 Volume=245K Target=$17.85 Stop=$20.05
POSITION: SUA VD - Oct. $20p (-57 delta)
http://www.investmenthouse.com/ci/xprsa.html
New buy points on current positions:
Play Date: 09/05/2006
NVDA (Nvidia--$27.07; -1.43; optionable): Semiconductors
http://biz.yahoo.com/p/n/nvda.html
STATUS: Breakout test. NVDA sold back further Wednesday on lower, below average volume. It undercut the 10 day EMA (27.62), but still closed above the 18 day EMA (26.76). If it finds support there it is ready to rebound and continue the breakout move. To recap: Going back to the well again on this market leader as it comes back to once more test the mid-August breakout from its 14 week cup with handle base. This is the second move off of this level since the breakout. 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: 8.057M Avg Volume: 10.403M
BUY POINT: New: $27.75 (orig. $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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