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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS
Good Movers: AOB; BRCM; COH; IO; ISE; LRCX; NVEC; RVSN; SIGM; SPTN
Tuesday night play results:
AOB: Nice surge on strong trade
BEAV: Still working laterally as the 10 day EMA rises to meet it
IWM: Nice volume as IMW starts higher
SPTN: Rallying again on solid trade.
New Plays:
Upside:
Play Date: 10/25/2006
IM (Ingram Micro--$19.78; -0.07; optionable): Wholesale IT products
http://biz.yahoo.com/p/i/im.html
EARNINGS: Released 10-24-06
STATUS: Double bottom w/handle. IM reported some strong earnings Tuesday after hours and IM broke higher Wednesday on strong volume. It high 21 on the high but backed off to give back half the move by the close. Nice break, however, from its 8 month base that is ready to move IM to a 6 year high. Solid base, solid earnings, and looking to move in as IM continues its break higher.
Volume: 1.435M Avg Volume: 1.132M
BUY POINT: $20.75 Volume=1.5M Target=$24.95 Stop=$19.65
POSITION: IM CD - Mar. $20c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/im.html
Play Date: 10/25/2006
NTLI (NTL, Inc.--$26.95; +1.05; optionable): Telecom wireless communications
http://biz.yahoo.com/p/n/ntli.html
EARNINGS: 11-8-06
STATUS: Cup. NTLI is working on a new high as it moves through its 7 month base. It has worked basically laterally the past 9 weeks, building up for a break over 27, some interim resistance within the base. Money flow is surging higher ahead of price, and on Wednesday volume surged above average as NTLI bumped into that resistance. Looking for the break above this level on continued solid volume. That is the move we will use to enter the play.
Volume: 6.902M Avg Volume: 2.491M
BUY POINT: $27.44 Volume=3.5M Target=$31.95 Stop=$25.95
POSITION: NUD CE - Mar. $25c (70 delta) &/or Stock
http://www.investmenthouse.com/cd/ntli.html
Play Date: 10/25/2006
WEBX (Webex Communications--$38.85; +0.93; optionable):
http://biz.yahoo.com/p/w/webx.html
EARNINGS: 10-26-06 after the close
STATUS: Double bottom. WEBX made us some solid coin on its series of stair-step runs in Q3, and after peaking at 40 on the last run, it has stepped back to the 50 day EMA (37.34). It has tapped twice at that level and Wednesday started back up with a solid price move. Volume was not there yet, but if it shows up tomorrow we are inclined to take some positions ahead of the earnings out after the close. Aggressive but we like what the pattern is showing.
Volume: 447.139K Avg Volume: 652.491K
BUY POINT: $39.31 Volume=979K Target=$45.65 Stop=$37.21
POSITION: UWB CH - Mar. $40c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/webx.html
New buy point on current position:
Play Date: 10/25/2006
JCG (J. Crew Group--$31.34; -0.10; optionable): Apparel stores
http://biz.yahoo.com/p/j/jcg.html
EARNINGS: Late November
STATUS: Test 18 day EMA. A new issued in late June, JCG broke out from a 2.5 month base in September and has rallied up the 18 day EMA (31.32) into October. The past week it has come back from a run to 33 to test the 18 day EMA Tuesday and Wednesday, showing a nice doji with tail Wednesday, rebounding to close at the 18 day EMA. Strong money flow is moving higher ahead of price, and we expect JCG to rebound from this near support and follow that money flow higher.
Volume: 365.9K Avg Volume: 392.712K
BUY POINT: $31.78 Volume=400K Target=$37.95 Stop=$30.95
POSITION: JCG CF - Mar. $30c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/jcg.html
Current plays ready to move:
Play Date: 10/23/2006
DIOD (Diodes--$43.20; +0.51; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/d/diod.html
EARNINGS: 10-27-06
STATUS: Breakout test. Rallied to tap at the near term down trendline formed after the mid-September high, then faded back for a modest gain. Earnings are close at hand, but like what it is showing us, and if it gives us the move we are willing to step into some positions ahead of the earnings. To recap: DIOD is still coming back from that big gap higher in mid-September as the 50 day EMA (41.53) rising to meet it. Holding some support at 42 after that breakout from a solid 5 month base. Looking for a strong move higher on strong volume to take positions.
Volume: 349.479K Avg Volume: 467.083K
BUY POINT: $44.55 Volume=699K Target=$52.95 Stop=$42.38
POSITION: DUH CI - Mar. $45c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/diod.html
Play Date: 10/21/2006
HMSY (HMS Holdings--$13.70; -0.27; no options): Specialized health services
http://biz.yahoo.com/p/h/hmsy.html
EARNINGS: Early November
STATUS: Cup w/handle. Low volume test Wednesday after the strong price and solid volume move Tuesday. Still set to make the break from this nice little base. To recap: 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: 86.577K Avg Volume: 223.462K
BUY POINT: $14.41 Volume=331K Target=$17.38 Stop=$13.39
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/hmsy.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, CELG, DRIV, GME, GOOG, ISE, MA, MRVL, NVDA, WEBX
CELG: Dropped to the 50 day EMA on the close as volume jumped above average.
DRIV: Downgraded and gapped lower, but was rebounding to end the session. Has to recover the 50 day EMA (50.30).
GME: Running into trouble, thudding lower Wednesday but volume did fall off below average.
ISE: Solid high volume gap higher.
WEBX: Ready to move after this double bottom at the 50 day EMA.
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.
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stock recommendation
stock option
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