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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: GME; IO; HOC; MA; NYX
Thursday night play results:
AMT: Gapped higher but no volume to stick the move.
MIKR: Excellent doji at the 10 day EMA.
OMCL: Still making the test at the 18 day EMA
SKX: Still an excellent test of the 10 day EMA
New Plays:
Upside:
Play Date: 11/04/2006
DIGE (Digene Corp.--$47.22; +1.50; optionable): Diagnostic substances
http://biz.yahoo.com/p/d/dige.html
EARNINGS: 11-2-06
STATUS: Cup w/handle. Nice base on base pattern as DIGE sets up an 11 week base on the heels of a 5 month base breakout in August. It broke out, rallied, but then crashed back down into the prior base. It then formed the current pattern and is making a higher low at the 18 day EMA (46.50) in the handle of the base. Volume shot back above average Friday on the earnings news as DIGE rebounded sharply from its Thursday selling ahead of its results. Looking for a new 6 year high as its gets more momentum off of its earnings announcement; remember, Friday was an off market day. A solid pattern with some of the best earnings in the market. Now just looking for the breakout to send it higher.
Volume: 720.695K Avg Volume: 422.565K
BUY POINT: $47.75 Volume=600K Target=$55.75 Stop=$45.95
POSITION: QDG CI - Mar. $45c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/dige.html
Play Date: 11/04/2006
DTSI (DTS, Inc.--$23.39; +1.40; no options): Digital audio technologies
http://biz.yahoo.com/p/d/dtsi.html
EARNINGS: 11-7-06 after the close
STATUS: Breakout. DTSI tried the breakout from its 6 month base in October, but the volume was not there and it faded back into September. It held the base and then got some legs to end last week in a weak market, surging on strong volume to the breakout on Friday. It broke to a 2 year high on that move and even with earnings Tuesday we are looking to move in if it can keep the run going. Another stock with very strong earnings growth rates, and we are looking for more proof of that Tuesday.
Volume: 248.566K Avg Volume: 113.912K
BUY POINT: $23.52 Volume=165K Target=$27.95 Stop=$21.92
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/dtsi.html
Play Date: 11/04/2006
HPC (Hercules--$17.90; +0.02; optionable): Specialty chemicals
http://biz.yahoo.com/p/h/hpc.html
EARNINGS: 10-24-06
STATUS: Breakout test. Solid surge higher the last week of October as HPC broke out from a 6 month base, surging to 19 on the high. Nice test last week, coming back to the 10 day EMA (17.62) to test. A strong pattern for a stock that also has some of the top fundamentals growth rates in the market.
Volume: 1.228M Avg Volume: 840.748K
BUY POINT: $18.18 Volume=1.3M Target=$21.88 Stop=$17.55
POSITION: HPC CW - Mar. $17.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/hpc.html
Play Date: 11/04/2006
NTGR (Netgear--$26.11; -0.02; optionable): Telecom communications gear
http://biz.yahoo.com/p/n/ntgr.html
EARNINGS: Announced 10-27-06
STATUS: Test breakout. NTGR is another market leading stock in fundamentals growth, and it showed that again a week back when it announced earnings and gapped massively out of a 5 month cup with handle base. After such a move it was likely to test, and we were just watching it to see when it would start to hold. Wednesday it tested 26 and rebounded to cut its losses. Thursday and Friday it held 26 again. That point may prove to be the bottom of the pullback even though it is still well above the 10 day EMA (25.29) that is often used as support on breakouts. It can still test that level and if it does we will let it and then move in when it rebounds. If it continues higher from here as it looked like it wanted to do to end last week we will also be ready to move in with a buy.
Volume: 528.14K Avg Volume: 660.295K
BUY POINT: From the Friday close: $26.38. On a test of the 10 day EMA (25.29), 25.65 on the rebound. Volume=750K Target=$31.48 Stop=$24.98
POSITION: TUD CE - Mar. $25c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/ntgr.html
Play Date: 11/04/2006
SEIC (SEI Investments--$56.06; +0.49; optionable): Investment brokerage
http://biz.yahoo.com/p/s/seic.html
EARNINGS: Announced 10-18-06
STATUS: Test 50 day EMA. SEIC made us some nice money on its strong July to early October run, marching up the 18 day EMA (56.73). It peaked just over 60 mid-October and then started the current test. After a breakout and strong run up the short term moving averages a stock needs a deeper rest, and the 50 day EMA is typically the point it holds if the move is going to continue. After that test it rebounds and starts the run again. SEIC found the 50 day EMA (55.28) a week back and has moved laterally since then. Volume jumped Friday as it started to bounce. Looking to move in as it continues this rebound on solid volume off this support.
Volume: 787.777K Avg Volume: 611.408K
BUY POINT: $56.84 Volume=850K Target=$64.95 Stop=$55.32
POSITION: QEI CK - Mar. $55c (59 delta, 74 OI) &/or Stock
http://www.investmenthouse.com/cd/seic.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
AAPL: Slipped just below the 18 day EMA but on very low trade.
AKAM: Looking better and better at the 50 day EMA as volume fell as it tested that level again Friday.
GME: Great gap higher as the gaming stocks got a jump on the holidays.
GOOG: Excellent test of the 10 day EMA with a doji on low volume.
MA: Juggernaut thus far.
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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us stock market
stock recommendation
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