|
|
stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good Movers: AEOS; HYSL; PRFT; STXS; EXPD; JBLU
Thursday night play results:
FSL: Not bad at all and ready to move further.
PRFT: Strong volume starting the breakout
PSYS: Volume surged very late on some buy on close orders. Looks ready to move this week.
ISLE: Low volume 18 day EMA test
RDEN: Volume jumped as RDEN spun its wheels under the 18 day EMA.
New Plays:
Upside:
Play Date: 09/09/2006
AKAM (Akami Technologies--$41.15; +1.74; optionable): Internet content, etc. delivery
http://biz.yahoo.com/p/a/akam.html
STATUS: Flying plateau. Taking another run at AKAM as it recovers from the Thursday dip lower and rebound, rallying Friday on rising, average volume. Strong stock that broke higher in late July from a 10 week base, consolidating that move the past 5 weeks over the 18 day EMA (39.23). Money flow is moving higher ahead of price and relative strength is making the breakout. Once more it looks very nice here.
Volume: 4.048M Avg Volume: 3.868M
BUY POINT: $41.32 Volume=4.1M Target=$47.95 Stop=$39.15
POSITION: UMU AH - Jan. $40c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/akam.html
Play Date: 09/09/2006
DE (Deere & Co.--$81.30; +0.19; optionable): Farm & construction machinery
http://biz.yahoo.com/p/d/de.html
STATUS: Double bottom w/handle. They say nothing runs like a deer, and the green and gold looks ready to gallop once this base completes. Nice surge in late August and on Tuesday to finish the right side of its 9 week base. Now working laterally on lower volume, forming the handle where the near term profit takers are shaken out. Strong earnings helped propel it to that big gain, and after this shakeout toward 80 it will be ready to make the break and put some more serious mileage on to the upside.
Volume: 1.555M Avg Volume: 2.643M
BUY POINT: $82.78 Volume=4M Target=$93.00 Stop=$79.95
POSITION: DE LP - Dec. $80p (60 delta) &/or Stock
http://www.investmenthouse.com/ci/de.html
Play Date: 09/09/2006
DRIV (Digital River--$48.55; +0.16; optionable): e-commerce outsourcing for software and high-tech markets
http://biz.yahoo.com/p/d/driv.html
STATUS: Breakout test. Ready to move back into DRIV as the river looks ready to continue flowing higher. DRIV continues working laterally over the 10 day EMA (48.41), consolidating the strong break higher in mid-August. Made us some nice money on the move, and after getting the dips on Thursday it rebounded from below the 18 day EMA (47.67) to hold the 10 day. Looking for it to hold near this level and then continue the breakout move. Some good upside volume last week, showing some accumulation continued even as there was some distribution in the overall market.
Volume: 624.399K Avg Volume: 944.923K
BUY POINT: $49.28 Volume=1.4M Target=$56.50 Stop=$47.55
POSITION: DQI LJ - Dec. $50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/driv.html
Play Date: 09/09/2006
LVS (Las Vegas Sands--$69.26; +1.36; optionable): Resorts and casinos
http://biz.yahoo.com/p/l/lvs.html
STATUS: Cup w/handle. Clark Griswold in 'Vegas Vacation' showed us why these stocks are good when the economy gets iffy: blowing $26K in a few days 'trying to get even' after losing $500 in his first 15 minutes at the blackjack table. LVS was a new issue in late 2004 and enjoyed a strong move this year as it broke out from a long base in January and rallied to 70. It formed a base, broke higher in late June, but then immediately fell into the current 9 week pattern. A little ambitious too soon to sustain another run higher. Now it has formed a better base sporting 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price weeks on rising volume), showing plenty of buying while it consolidates. That sets the foundation to move higher. Bounced Friday off the lows in the handle over the 50 day EMA (66.65), but no volume yet. Getting ready for the break higher that will carry it to a new all-time high. We like the gambling stocks at this juncture because if the economy is going to fade some then the 'sin' stocks tend to do better as consumers roll with their worries at the craps table or count cards at blackjack.
Volume: 1.588M Avg Volume: 2.258M
BUY POINT: $70.05 Volume=3.4M Target=$80.00 Stop=$67.40
POSITION: LVS LN - Dec. $70c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/lvs.html
Downside:
Play Date: 09/09/2006
ATW (Atwood Oceanics--$43.67; -1.93; optionable): International offshore drilling
http://biz.yahoo.com/p/a/atw.html
STATUS: Put. ATW surged Tuesday on volume on CVX' announcement regarding its deepwater field extension well. That sent a ripple through the offshore drilling sector, but that ripple could not stop the negative action in the energy stocks. ATW immediately turned back down and Friday, after a modest gap higher, it sprang a leak and sank below the 50 day EMA (44.37). Looking for ATW to drill deeper and test the August low near 40.50. A move to the target lands us a 42%ish gain.
Volume: 271K Avg Volume: 383.049K
BUY POINT: $43.48 Volume=385K Target=$41.00 Stop=$43.89
POSITION: ATW VI - Oct. $45p (-54 delta)
http://www.investmenthouse.com/ci/atw.html
Play Date: 09/09/2006
PTEN (Patterson-Uti Energy--$25.28; -1.10; optionable): Onshore drilling contractor
http://biz.yahoo.com/p/p/pten.html
STATUS: Put. After a 4 week lateral consolidation attempt between 28 and 26, PTEN broke the range Friday, diving lower and closing near the session low. This follows as May through July downtrend and an attempt at a reverse head and shoulders pattern that broke down with the Friday move. Looking for PTEN to follow the money lower and revising the July lows at 22.55. A move to the target lands us a 60%ish gain.
Volume: 3.301M Avg Volume: 2.82M
BUY POINT: $25.14 Volume=3M Target=$23.05 Stop=$25.45
POSITION: NZQ VE - Oct. $25p (-41 delta)
http://www.investmenthouse.com/ci/pten.html
Play Date: 09/09/2006
RS (Reliance Steel--$31.50; -0.41; optionable): Metals processing, fabrication
http://biz.yahoo.com/p/r/rs.html
STATUS: Put. Going to the well again on RS as it continues its downtrend that started in May. A straight drop below the 18 day EMA (32.56) July through late August, and then a gap higher the last week of that month looked promising. A week long lateral move then started to fail last week. Ready to fill that gap toward the August low (29.80). A move to the target lands a 41%ish gain.
Volume: 659.7K Avg Volume: 1.25M
BUY POINT: $31.35 Volume=1.2M Target=$29.85 Stop=$31.65
POSITION: RS VF - Oct. $30p (-33 delta)
http://www.investmenthouse.com/ci/rs.html
Continuing ready to move:
FSL: Nice move Friday on some volume.
LIFC: Nice pullback looks about over.
PSYS: Huge volume late. Looks ready.
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.
|
stock recommendation
stock investment information
|
