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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: AKAM; NVDA; PLMD; TWGP; WEBX
Thursday night play results:
CWTR: Still working laterally on lower volume, setting up well
DJO: Still working at the 50 day EMA
PLCE: Gapped up but could not make the breakaway move
APA: Heading lower though did recover some off of the low
New Plays:
Upside:
Play Date: 09/16/2006
ADS (Alliance Data--$54.80; +1.20; optionable): Transaction and credit services
http://biz.yahoo.com/p/a/ads.html
STATUS: Reverse head and shoulders breakout. Volume moved up to just over average Friday as ADS started higher on the breakout from its 8 week pattern that formed at the bottom of its 10 week cup base; this pattern often forms at the bottom of a cup base and launches a stock up the right side. Positive accumulation in the base has set up the next move; not bad as the pattern has not fully developed. Volume has moved higher as ADS started this move toward a new all-time high. Strong fundamentals to go along with its nice technical pattern.
Volume: 1.029M Avg Volume: 951.209K
BUY POINT: $55.05 Volume=1.2M Target=$61.95 Stop=$52.89
POSITION: ADS CK - Mar. $55c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/ads.html
Play Date: 09/16/2006
HLEX (Healthextras--$31.02; +0.02; optionable): Insurance brokers
http://biz.yahoo.com/p/h/hlex.html
STATUS: Cup w/handle. Friday we were shaken out with a trailing stop on a fluky alert that was erroneously sent. It still looks good with volume jumping Friday on a test of the 10 day EMA (30.73) and then a nice rebound in its very tight lateral range in the handle of its 6 month base. Money flow remains way out in front and looking for a strong breakout to jump back in.
Volume: 533.256K Avg Volume: 231.88K
BUY POINT: $31.32 Volume=348K Target=$37.00 Stop=$30.45
POSITION: HUE CF - Mar. $30c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/hlex.html
Play Date: 09/16/2006
ISE (International Securities Exchange--$45.72; +1.77; optionable): Electronic exchange for equity options
http://biz.yahoo.com/p/i/ise.html
STATUS: Cup w/handle. Strong volume Friday as ISE started the break from its 6 month base. After hours it declared a dividend; getting even better. Sweet base, using the 200 day SMA (38.69) on the rising lows at the bottom of the pattern and then the 50 day EMA (41.30) on the lows of the handle. Solid 6 to 3 accumulation shows plenty of buying in the pattern and ISE looks ready to run strong here.
Volume: 1.285M Avg Volume: 531.657K
BUY POINT: $45.85 Volume=550K Target=$52.75 Stop=$43.11
POSITION: ISE AJ - Jan. $45c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/ise.html
Play Date: 09/16/2006
MERX (Merix--$12.23; 0.00; optionable): Printed circuit boards
http://biz.yahoo.com/p/m/merx.html
STATUS: Cup w/handle. Kind of skewed and could be called a reverse head and shoulders, but either way a nice base set up over the 200 day SMA (10.05; used it on the pattern low as support) and now in a nice lateral handle to its 22 week base. Positive accumulation and money flow surging higher ahead of price. It is ready, but needs to show strong trade as it makes the move higher.
Volume: 234.421K Avg Volume: 356.155K
BUY POINT: $12.48 Volume=525K Target=$14.35 Stop=$11.86
POSITION: KXQ CV - Mar. $12.50c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/merx.html
Play Date: 09/16/2006
SMSC (Standard Microsystems--$29.36; -0.20; optionable): Integrated circuits
http://biz.yahoo.com/p/s/smsc.html
STATUS: Cup w/handle. Working back toward the 10 day EMA (28.96) last week after a nice bounce late the prior week. Nicely formed 7.5 month base sporting strong money flow leading the price. Solid leader in its sector and some of the top fundamentals growth rates in the market. Letting it make this shakeout and then ready to move in on a strong volume breakout.
Volume: 281.188K Avg Volume: 335.972K
BUY POINT: $30.05 Volume=504K Target=$34.75 Stop=$28.84
POSITION: SMQ AF - Jan. $30c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/smsc.html
Play Date: 09/16/2006
WTSLA (Wet Seal--$5.83; +0.18; optionable): Apparel and accessory items targeting female consumers
http://biz.yahoo.com/p/w/wtsla.html
STATUS: Cup w/handle. WTSLA is starting the breakout from the two week handle to its 22 week base. Excellent 9 to 3 accumulation (9 up price weeks on rising volume to 3 down price weeks on rising volume), showing heavy buying during the base. Volume rallied to end August and then into last week, showing the buyers are massing for the breakout. Indeed it started that move Friday on a good shot of rising, above average volume. Ready to move in as it continues higher this week.
Volume: 1.001M Avg Volume: 672.78K
BUY POINT: $5.92 Volume=675K Target=$7.12 Stop=$5.56
POSITION: WTQ CA - Mar. $5c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/wtsla.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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