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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: SHOO; EXPD
Strong plays:
1) WRLD: Nice pattern forming when all else struggles
2) PRAA: Breaking lower in its downtrend
3) TTC: Turning down from a test of resistance in the downtrend
4) XPRSA: Breaking below the 200 day SMA
5) COHR: Showing upside volume in a selling market.
6) NVDA: Sliding lower for a deeper test, but that just sets up the next move even better if the market is to hold here.
NEW PLAYS:
Upside plays:
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
Play Date: 09/06/2006
WTSLA (Wet Seal--$5.57; -0.04; optionable): Teen apparel stores
http://biz.yahoo.com/p/w/wtsla.html
STATUS: Cup w/handle. WTSLA surged to end August on some solid same store sales and has now spent the past few sessions easing back, forming a handle to its 5 month base. This is part of a larger 15 month double bottom. Strong 7 to 4 accumulation in the current base shows solid buying. Showed great relative strength in the market selling, using it to set up its break higher. Going to be patient and let it form the handle and then break higher.
Volume: 982.395K Avg Volume: 665.557K
BUY POINT: $5.82 Volume=980K Target=$7.00 Stop=$5.41
POSITION: WTQ LA - Dec. $5c (60 delta) &/or Stock
http://www.investmenthouse.com/ct/wtsla.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/ct/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/ct/xprsa.html
CONTINUING PLAYS:
Upside:
Play Date: 08/22/2006
COHR (Coherent--$36.25; 0.00; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/c/cohr.html
STATUS: Double bottom w/handle. COHR is holding up very well, showing great relative strength as it works on its three week handle to the 4 month base. Indeed, nice volume Wednesday as COHR gapped lower and then recovered to close flat. Money flow remains strong. Just going to be patient and let COHR finish its pattern during the market selling.
Volume: 280.386K Avg Volume: 244.105K
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: 09/02/2006
FORM (Formfactor--$46.68; -2.52; optionable): Semiconductors
http://biz.yahoo.com/p/f/form.html
STATUS: Test breakout. After gapping higher Tuesday, FORM fell sharply, undercutting the 10 day EMA (47.02) as it fell back in the market selling. Volume remained above average but was lower as it sold back; small blessings. Looking for FORM to test the 18 day EMA (46.04). From there we see if it can hold and deliver a new move higher. To recap: FORM is making the test of a strong move last Wednesday that broke it higher from a ragged 7 week base. Strong move on strong volume and a nice test underway for this leading stock.
Volume: 1.503M Avg Volume: 949.529K
BUY POINT: $46.89 Volume=1.1M Target=$53.95 Stop=$45.42
POSITION: AFU AI - Jan. $45c (66 delta) &/or Stock
http://www.investmenthouse.com/ct/form.html
Play Date: 08/26/2006
INFA (Informatica--$14.32; -0.36; optionable): Enterprise data integration software
http://biz.yahoo.com/p/i/infa.html
STATUS: Reverse head and shoulders. Testing with the rest of the market Wednesday, selling to but holding the 18 day EMA (14.27) on continued below average volume. Will see if it can hold this level and then break higher, showing us the breakout move. To recap: INFA cleared the mid-August highs last week and is now testing, still looking for a breakaway move from its 15 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: 552.626K Avg Volume: 1.286M
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: 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/ct/nvda.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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us stock market
stock recommendation
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