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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: NVDA; QSII; WFR; WTSAL
Weekend play results:
ADS: Modest loss on low volume
HLEX: Still working laterally over the 10 day EMA
ISE: Gapped higher on decent trade but then moved lower on the session
MERX: Rallied well but then faded for a modest loss, holding the 10 day EMA
SMSC: Broke over the September high but then faded, holding a modest gain
WTSLA: Nice break higher on strong volume
New Plays:
Upside:
Play Date: 09/18/2006
BHE (Benchmark Electronics--$25.59; -0.40; optionable): Printed circuit board
http://biz.yahoo.com/p/b/bhe.html
STATUS: Cup w/handle. Testing back to the 10 day EMA (25.42) on low, below average volume, forming the handle to its 18 week base. The pattern formed using the 200 day SMA (24.18) as support, making a series of higher lows in August and early September to set up the breakout. May take another session or two to complete the pullback and form the handle. With money flow surging higher, however, we want to be ready to move in as the stock makes the break higher to follow it.
Volume: 323.6K Avg Volume: 559.423K
BUY POINT: $26.32 Volume=600K Target=$30.45 Stop=$25.12
POSITION: BHE AE - Jan $25c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/bhe.html
Play Date: 09/18/2006
OPSW (Opsware--$8.52; +0.38; optionable): IT automation software for enterprises, government agencies, service providers
http://biz.yahoo.com/p/o/opsw.html
STATUS: Cup w/handle. Strong volume Monday as OPSW started the breakout from its 23 week base, setting OPSW for a run to its new all-time high. Strong 8 to 4 accumulation is paving the way (8 up price weeks on rising volume to 4 down price weeks on rising volume) to that new high. Money flow is shooting higher, leading the way toward a breakout. Very nice.
Volume: 2.312M Avg Volume: 771.834K
BUY POINT: $8.68 Volume=900K Target=$10.45 Stop=$8.07
POSITION: UWA AB - Jan. $7.50c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/opsw.html
Play Date: 09/18/2006
PCP (Precision Castparts--$59.89; +2.48; optionable): Cast forgings for critical aerospace and industrial gas turbine applications
http://biz.yahoo.com/p/p/pcp.html
STATUS: Ascending base. PCP rallied well from 2004 to early May 2006. Nice run, needed a correction and a new base. The past 17 weeks it has formed the base, using the 200 day SMA (56.65) as support, coming off that level with a big doji Friday and a solid break higher Monday on strong, above average volume. Strong 5 to 1 accumulation (5 up price weeks on rising volume to 1 down price weeks on rising volume) shows strong buying in this base, a great complement to the surging money flow. Strong surge Monday and ready to move in as it continues the break higher off the 200 day.
Volume: 1.624M Avg Volume: 986.57K
BUY POINT: $60.15 Volume=1M Target=$67.95 Stop=$58.38
POSITION: PCP AL - Jan. $60c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/pcp.html
Play Date: 09/18/2006
VSEA (Varian Semiconductor--$37.52; +1.58; optionable): Semiconductor equipment
http://biz.yahoo.com/p/v/vsea.html
STATUS: Test breakout. VSEA broke out from a 7 month double bottom with handle base last Wednesday, tested the move, and then blasted higher Monday on the best volume thus far. Positive accumulation and strong money flow helping send the stock higher. Relative strength broke out as well; strong move. Ready to move in as it continues higher on this breakout and then we will add to the position when it makes the test. Looking strong.
Volume: 1.895M Avg Volume: 917.077K
BUY POINT: $37.71 Volume=945K Target=$43.45 Stop=$35.48
POSITION: UES BG - Feb. $35c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/vsea.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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trade stock
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