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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Strong plays:
1) ALXN: Nice breakout test off the 18 day EMA
2) LSI: Very nice pattern is quietly forming while the market struggles some.
3) IIG: Nice test of that strong surge 2 weeks back
4) CTRP: Had a rougher session but still ready to move.
5) NUVO: The handle continues to form.
NEW PLAYS:
Upside plays:
Play Date: 11/27/2006
ALXN (Alexion Pharmaceuticals--$43.04; -0.96; optionable): Drugs
http://biz.yahoo.com/p/a/alxn.html
STATUS: Test 18 day EMA. ALXN is making the second test of its early November breakout from an 8 month shallow cup with handle base. Solid volume as it surged higher this month, and then a very low volume test the past week. Monday it tapped the 18 day EMA (42.36) on the low and rebounded to recoup some losses. Money flow remains strong as it makes the test and filled the gap higher just over a week back. Solid action in this market, and expecting it to hold this level and then rebound to continue the breakout move.
Volume: 757.349K Avg Volume: 549.75K
BUY POINT: $43.75 Volume=800K Target=$51.95 Stop=$42.15
POSITION: XQN BH - Feb. $40c (71 delta) &/or Stock
http://www.investmenthouse.com/ct/alxn.html
Play Date: 11/27/2006
LSI (LSI Logic--$10.65; -0.19; optionable): Semiconductors
http://biz.yahoo.com/p/l/lsi.html
STATUS: Cup w/handle. Ignoring the market and tech selling, holding the 10 day EMA (10.61) Monday once more as it forms the handle to its 8 month base. Price/volume action remains excellent as it tests, and money flow continues to rise ahead of price. Solid action, and looking for LSI to hold at this near support, ride out the selling, and then deliver the upside breakout.
Volume: 6.62M Avg Volume: 5.142M
BUY POINT: $10.96 Volume=7.7M Target=$13.22 Stop=$10.44
POSITION: LSI DB - Apr. $10c (66 delta) &/or Stock
http://www.investmenthouse.com/ct/lsi.html
Play Date: 11/27/2006
OII (Oceaneering Intl.--$40.52; -0.56; optionable): Oil & Gas offshore drilling
http://biz.yahoo.com/p/o/oii.html
STATUS: Cup w/handle. Working laterally the past two weeks on low, below average volume, consolidating the October and early November run higher, waiting for the 18 day EMA (40.20) to catch up with it. Money flow remains strong as it consolidates in its 19 week base, forming up and preparing for a breakout as oil prices have recovered. This is the shakeout, the quiet time just before the next breakout and run higher.
Volume: 544.8K Avg Volume: 1.161M
BUY POINT: $42.32 Volume=1.7M Target=$50.94 Stop=$39.98
POSITION: OII DH - Apr. $40c (58 delta) &/or Stock
http://www.investmenthouse.com/ct/oii.html
New buy points on current positions:
Play Date: 11/27/2006
ADS (Alliance Data--$62.92; -1.24; optionable): Credit services
http://biz.yahoo.com/p/a/ads.html
STATUS: Test 18 day EMA. ADS sold back Monday as well, continuing a 3 day pullback. Volume remained well below average, unlike the indices and many stocks. It tapped the 18 day EMA (62.57) on the low and bounced modestly, setting up well for the next run higher. Solid stock that is proving to be a leader in this market. Looking to move in after it makes this test.
Volume: 607.8K Avg Volume: 892.374K
BUY POINT: $63.55 Volume=950K Target=$72.95 Stop=$62.35
POSITION: ADS CL - Mar. $60c (68 delta) &/or Stock
http://www.investmenthouse.com/ct/ads.html
Play Date: 11/27/2006
IIG (Imergent--$21.52; -0.40; optionable): eCommerce solutions for small businesses.
http://biz.yahoo.com/p/i/iig.html
STATUS: Breakout test. IIG is making the second test of the 10 day EMA (21.81) after the late October breakout from its 6 month saucer with handle base. It surged on the breakout, rallying to 25 on the move. Made us some money already, and now it is coming back, slipping just below the 10 day EMA on the close. Looking for IIG to hold near this level and then 'emerge' for another run in its breakout move.
Volume: 414.4K Avg Volume: 299.022K
BUY POINT: $22.35 Volume=425K Target=$26.95 Stop=$21.32
POSITION: IIG DX - Apr. $22.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ct/iig.html
CONTINUING PLAYS:
Upside:
Play Date: 11/20/2006
COGO (Comtech Group--$16.58; -0.40; optionable): LCD modules, etc.
http://biz.yahoo.com/p/c/cogo.html
STATUS: Breakout test. Gapped higher Monday but could not hold the move, banging off the 18 day EMA (16.34) on the low and then recovering modestly. Volume bounced up to average as it fell back but held the pattern. Still looks ready to make the continued move higher. To recap: COGO broke out from a 20 week cup with handle in late October, rallied but then faded back to test the move, tapping and holding the 50 day EMA (15.39) on the low and holding. It started to rebound Friday on stronger trade, and Monday was up again on even stronger volume. Money flow is leading higher and COGO is ready to follow it to a new all-time high. A strong stock with some of the best fundamental growth rates to go along with the pattern.
Volume: 782.569K Avg Volume: 752.443K
BUY POINT: $17.32 Volume=850K Target=$20.78 Stop=$16.21
POSITION: UWK CW - Mar. $17.50c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/cogo.html
Play Date: 11/18/2006
CTRP (Ctrip.com International--$55.25; -1.60; optionable): Chinese travel service
http://biz.yahoo.com/p/c/ctrp.html
STATUS: Test breakout. Gapped higher as well Monday, but it tripped up and had a hard time holding that move. It sold back down to the low of the test, but volume remained below average. Looking for it to hold in this 55 area and then continue the move higher. To recap: Nice blast higher on strong volume from a 17 week base the second week of November. Surged to 60 on the move and then needed a breather, coming back Thursday and Friday to test near support at the 10 day EMA (55.32). Excellent breakout, run, and test. Strong money flow led the way, and it is holding up nicely as it makes the test. Looking for it to bounce off the Friday doji at the 10 day EMA to give us the buy point.
Volume: 290.454K Avg Volume: 399.991K
BUY POINT: $56.72 Volume=600K Target=$67.95 Stop=$54.95
POSITION: QCT CK - Mar. $55c (58 delta) &/or Stock
http://www.investmenthouse.com/ct/ctrp.html
Play Date: 11/20/2006
NUVO (Nuvelo--$19.08; -0.38; optionable): Biotechnology
http://biz.yahoo.com/p/n/nuvo.html
STATUS: Double bottom w/handle. Still coming back to form the handle, landing Monday near some support from early September. Volume was up but remained below average on the test. Solid pattern, just being patient as it makes its test. To recap: Textbook 12 week base has formed using the 200 day SMA (17.45) 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: 350.307K Avg Volume: 466.849K
BUY POINT: $19.75 Volume=500K Target=$23.98 Stop=$18.89
POSITION: CDQ DD - Apr. $20c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/nuvo.html
Play Date: 11/21/2006
SINA (Sina.com--$28.31; -0.45; optionable): Online media in China
http://biz.yahoo.com/p/s/sina.html
STATUS: Breakout test. Still testing, fading to the 18 day EMA (28.06) once more on Monday, but bouncing modestly to recoup some losses. Still solid in the pattern, and just letting it ride out this market weakness and then show us the move. Always like it when a stock can go about its business as the market sells. To recap: 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 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: 1.258M Avg Volume: 819.135K
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/ct/sina.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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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