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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: AAPL; CBG; GLDN; GME; ICE; MA; NVEC; NYX
Monday night play results:
AMT: Breaking higher but volume was way too low.
AMX: Eased back on lower volume after that strong break upside Monday.
COGO: Fell back to the 10 day EMA on low, below average volume.
NUVO: Faded back on lower volume but still in a great pattern.
New Plays:
Upside:
Play Date: 11/21/2006
EMR (Emerson Electric--$88.82; +0.59; optionable): Multifaceted electronics and industrial technology company. Splits 2:1 on 12-12-06
http://biz.yahoo.com/p/e/emr.html
STATUS: Breakout test. EMR jumped sharply higher the first week of November, breaking out form a 6 month cup with handle base. It could not advance the ball much further, but in consolidating that strong break higher it refused to give up its any ground, working laterally on low volume as the 10 day EMA (87.69) rises to meet it. Once it gets there we are looking for EMR to continue its breakout move.
Volume: 950.8K Avg Volume: 1.453M
BUY POINT: $89.38 Volume=1.6M Target=$99.95 Stop=$87.45
POSITION: EMR CR - Mar. $90c (52 delta)
http://www.investmenthouse.com/ci/emr.html
Play Date: 11/21/2006
MON (Monsanto--$47.27; +1.00; optionable): Agricultural chemicals (Round-Up, etc.)
http://biz.yahoo.com/p/m/mon.html
STATUS: Double bottom with handle. MON is shooting for a new all-time high, forming an 11 week base that used the 200 day SMA (43.43) on the second low and bouncing from there. It came back to end last week and then bounced Tuesday on strong volume. A solid run in August after its split, this is a good consolidation to set up its next breakout. Looking for some continuing volume as MON sprays through the buy point.
Volume: 4.26M Avg Volume: 3.609M
BUY POINT: $47.57 Volume=5.4M Target=$54.95 Stop=$45.65
POSITION: MON DI - Apr. $45c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/mon.html
Play Date: 11/21/2006
OMCL (Omnicell--$18.82; +0.12; optionable): Medicine dispensing systems and related products
http://biz.yahoo.com/p/o/omcl.html
STATUS: Cup w/handle. Working on a nice, quiet 5 week handle to its three year base. Volume jumped Tuesday as OMCL tried to start the run but faded back. Not bad action in an indecisive market Tuesday. Strong stock with solid fundamentals to match the strong pattern. All we do now is sit back and wait for the breakout.
Volume: 336.085K Avg Volume: 244.905K
BUY POINT: $19.69 Volume=325K Target=$23.65 Stop=$18.31
POSITION: UMK BD - Feb. $17.50c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/omcl.html
Play Date: 11/21/2006
SINA (Sina.com--$28.62; +0.33; optionable): Online media in China
http://biz.yahoo.com/p/s/sina.html
STATUS: Breakout test. SINA blasted higher to start November, breaking out from a 6 month cup with handle base. This is part of a longer three year pattern, but this last base has moved it off the bottom, indicating SINA is ready to embark upon a more interesting run higher. Nice hold of the 18 day EMA (27.84) as it tested the past week, bouncing off that level Tuesday on stronger, above average volume. Strong money flow is running higher ahead of price and we are ready to move in as it makes the breakout.
Volume: 1.19M Avg Volume: 811.7K
BUY POINT: $28.89 Volume=950K Target=$33.88 Stop=$27.45
POSITION: NOQ CE - Mar. $25c (77 delta) &/or Stock
http://www.investmenthouse.com/ci/sina.html
Continuing play ready to move:
Play Date: 11/20/2006
NUVO (Nuvelo--$19.71; -0.12; optionable): Biotechnology
http://biz.yahoo.com/p/n/nuvo.html
STATUS: Double bottom w/handle. Tried to start the breakout move, but could not hold it as volume backed off but was still above average. Still an excellent pattern ready to yield a breakout. To recap: Textbook 12 week base has formed using the 200 day SMA (17.42) as support for the second leg hit in the first week of November. A solid price and volume move off that level and then as pullback the past three sessions to form a handle to the base. Volume exploded higher Monday. Money flow is surging higher ahead of price and NUVO looks ripe to follow it.
Volume: 566.868K Avg Volume: 478.392K
BUY POINT: $20.42 Volume=500K Target=$24.58 Stop=$19.15
POSITION: CDQ DD - Apr. $20c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/nuvo.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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stock recommendation
stock market recommendation
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