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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: KNOT; MDRX
Thursday night play results:
NYX: Nice doji at the 18 day EMA
TIE: Still working laterally below 30
UARM: Further tested the 10 day EMA and went ahead and started some positions
VLTR: Still testing the breakout at the 10 day EMA
PRFT: Working laterally at the 10 day EMA as it sets up for the next break higher
CXW: Tested lower and reversed on volume. Ready to buy on a further move.
New Plays:
Upside:
Play Date: 10/21/2006
AKAM (Akami Technologies--$46.19; -0.10; optionable): Internet content delivery systems
http://biz.yahoo.com/p/a/akam.html
EARNINGS: 10-26-06
STATUS: Test 50 day EMA. Made us some great money on its last move, and when it started to struggle at the 18 day EMA we closed it to let it test. It looks to have done that with a plunge to the 50 day EMA (45.16) Wednesday, and then a nice hold at that level, tapping the 50 day SMA on the Friday low and rebounding to close flat as volume jumped above average. A strong breakout and run in September that needed a rest, and we are looking for a strong price and volume rebound from here to move into new positions and catch AKAM as it makes its next run.
Volume: 6.429M Avg Volume: 4.926M
BUY POINT: $46.72 Volume=7M Target=$55.95 Stop=$44.58
POSITION: UMU BI - Feb. $45c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/akam.html
Play Date: 10/21/2006
EZPW (Ezcorp--$42.81; -1.42; optionable): Pawn shops
http://biz.yahoo.com/p/e/ezpw.html
STATUS: Breakout test. EZPW reported some strong earnings and gapped higher on 10-13, clearing a 14 week base. It rallied near 47 and then started to test last week, coming back to the 10 day EMA (41.80) on the Friday low. Nice test of the breakout, and we are looking for EZPW to hold near this level to start the week, and we will move in as it rebounds higher on some continued solid volume. A market leader in sales and earnings to go with the strong pattern.
Volume: 614.192K Avg Volume: 512.285K
BUY POINT: $43.66 Volume=750K Target=$51.95 Stop=$41.65
POSITION: ULP CI - Mar. $45c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/ezpw.html
Play Date: 10/21/2006
GME (Gamestop--$51.25; -0.02; optionable): Electronics stores
http://biz.yahoo.com/p/g/gme.html
EARNINGS: Mid-November
STATUS: Breakout test. Strong break higher the second week of October as GME cleared a 6.5 month base on some strong volume. It looks to have overcome the weakness on the Play Station 3 web sales in a big way. Excellent break higher with a very nice, low volume test the past week to the 10 day EMA (50.40), easily holding above that level as it taps it on the lows and bounces back. Strong money flow is moving higher ahead of price, and we expect GME to continue on up, following the money into the holiday season.
Volume: 850.5K Avg Volume: 1.344M
BUY POINT: $52.21 Volume=1.7M Target=$60.45 Stop=$50.22
POSITION: GME AJ - Jan. $50c (56 delta) or GME DK - Apr. $55c (45 delta) &/or Stock
http://www.investmenthouse.com/ci/gme.html
Play Date: 10/21/2006
HMSY (HMS Holdings--$13.75; +0.38; no options): Healthcare information systems
http://biz.yahoo.com/p/h/hmsy.html
EARNINGS: Early November
STATUS: Cup w/handle. A sweet little 8 week base has formed as HMSY sets up for a breakout to a 10 year high. Excellent action in the pattern, and money flow is running higher as the stock bases. Has been probing the breakout the past week with some solid intraday surges up near 14.30. Looking for the volume to kick in as HMSY makes the next such move.
Volume: 163.977K Avg Volume: 220.358K
BUY POINT: $14.41 Volume=331K Target=$17.38 Stop=$13.39
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/hmsy.html
Play Date: 10/21/2006
LH (Laboratory Corp.--$68.10; +1.25; optionable): Medical labs
http://biz.yahoo.com/p/l/lh.html
EARNINGS: 10-24-06 before the open
STATUS: Test 50 day EMA. Gapped higher Friday on an upgrade as LH heads toward earnings. After a nice breakout and run from June through August, it needed a test, and has spent the past 9 weeks fading back to the 50 day EMA (66.41). During the past week as LH moved in a very flat, tight range over the 50 day. Great break higher Friday, and looking to move in as it continues the move. Earnings are always an aggressive play, but like this one moving into its earnings report on Tuesday morning.
Volume: 1.506M Avg Volume: 1.148M
BUY POINT: $68.45 Volume=1.5M Target=$78.75 Stop=$66.65
POSITION: LH BB - Feb. $67.50c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/lh.html
Continuing plays ready to move this week:
AQNT
CXW
FFIV
NYX
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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us stock market
stock recommendation
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