|
|
stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: EBAY; PRFT; STXS; SVNT
Thursday night play results:
CSTR: Still working on the nice handle
FSL: Good action Friday
PRFT: Strong volume starting the breakout
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/cd/akam.html
Play Date: 09/09/2006
MU (Micron Technology--$17.88; +0.94; optionable): Semiconductors
http://biz.yahoo.com/p/m/mu.html
STATUS: Cup w/handle breakout. Strong volume surge Friday as MU broke out from a 17 week base, moving to a 2 year high. A nicely formed base with a reverse head and shoulders at the bottom of the pattern as this important semiconductor steps up to lead. How it responds to start next week will be key. Often a stock will come back and test right after such a strong move; as long as it bounces back after the test it is a good indication and a good entry point. We will look for that test but we will also be ready to start some positions as it continues the break higher.
Volume: 12.92M Avg Volume: 8.625M
BUY POINT: $17.98 Volume=9M Target=$20.70 Stop=$17.05
POSITION: EGQ LW - Dec. $17.50c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/mu.html
Play Date: 09/09/2006
NTLI (NTL, Inc.--$26.90; +0.66; optionable): Telecom wireless communications.
http://biz.yahoo.com/p/n/ntli.html
STATUS: Cup w/handle. Nice strong volume Friday as NTLI headed toward the breakout from a 16 week base that is ready to take it to a new all-time high. Very solid pattern with money flow exploding higher ahead of price and plenty of room to run upside.
Volume: 5.541M Avg Volume: 2.619M
BUY POINT: $27.25 Volume=3.9M Target=$31.45 Stop=$25.88
POSITION: NUD AY - Jan. $27.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/ntli.html
Play Date: 09/09/2006
SIMG (Silicon Image--$11.68; 0.00; optionable): Semiconductors
http://biz.yahoo.com/p/s/simg.html
STATUS: Cup w/handle. SIMG has again moved up to the high that has stalled it over the past 15 months. It is showing very solid upside volume, however, the past week as it bangs at that resistance point as it tries to clear its current 18 week base. Strong money flow is leading higher, and strong 8 to 3 accumulation in the pattern (8 up price weeks on rising volume to 3 down price weeks on rising volume) shows plenty of buying, setting up the breakout this time.
Volume: 1.15M Avg Volume: 1.172M
BUY POINT: $12.25 Volume=1.8M Target=$14.75 Stop=$11.42
POSITION: QSI LV - Dec. $12.50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/simg.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/cd/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/cd/pten.html
Continuing plays ready to move:
Play Date: 09/07/2006
FSL (Freescale Semiconductor--$30.75; +0.43; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
STATUS: Cup w/handle. Looked solid Friday, rallying to the buy point but backing off late. Still set up very well to continue higher and the breakout. To recap: After giving us a decent little run in the third leg of the summer rally FSL has faded back Wednesday and Thursday after a strong Tuesday move. It tapped at the 18 day EMA (30.06) on the intraday lows and bounced back, showing a bit stronger, above average volume Thursday. Looking for it to complete the test and then rebound. Want to see some continued strong volume as it does. Nice 17 week pattern has formed over the 200 day SMA (28.12), setting up for a breakout to a new all-time high.
Volume: 2.745M Avg Volume: 2.449M
BUY POINT: $30.94 Volume=3.5M Target=$35.95 Stop=$29.75
POSITION: FSL AF - Jan. $30c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/fsl.html
Downside:
Play Date: 09/06/2006
XPRSA (U.S. Xpress--$19.97; +0.72; optionable): Trucking
http://biz.yahoo.com/p/x/xprsa.html
STATUS: Head and shoulders. Nice break below the 200 day SMA (20.05) on Wednesday and then a low volume test of that level Friday. That sets up the play perfectly for more downside. To recap: 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, cracking below the neckline of the pattern, rebounding modestly to test to end the week. 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. Moved up the entry point.
Volume: 117.89K Avg Volume: 242.306K
BUY POINT: $19.66 Volume=245K Target=$17.95 Stop=$20.10
POSITION: SUA VD - Oct. $20p (-57 delta)
http://www.investmenthouse.com/cd/xprsa.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
AKAM: Right back at it on Friday
CCJ: Still in the nice test of the break off the 50 day EMA.
FLR: Diving lower . . . again
GME: Nice gap higher on volume. May turn into something for us this week.
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.
|
stock recommendation
stock investment information
|
