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stock recommendation, stock pick
Begin part 3 of 3
THE PLAYS
Weekend play results:
HOLX: Same issue: good move but not a lot of trade
MO: Gapped higher but could not hold the move
NUE: Surging.
WNR: Gapped up but no volume to push it.
BER: Tapped at the 50 day EMA on the high. Still looking for the turn back down
DIA: Rallied higher on lower volume. Will see if it rolls over.
New Plays:
Upside:
Play Date: 12/04/2006
OMNI (Omni Energy Svc.--$10.72; +0.68; optionable): Oil and gas service company
http://biz.yahoo.com/p/o/omni.html
STATUS: Reverse head and shoulders. Strong upside volume the past week, and Monday OMNI was motoring higher, making the break over the October and late November highs. That starts the breakout from its 5 month base and sending OMNI on the road toward a 6 year high. Money flow is screaming higher ahead of price and we are ready to move in as OMNI continues the breakout move.
Volume: 1.033M Avg Volume: 646.608K
BUY POINT: $10.85 Volume=650K Target=$13.11 Stop=$10.09
POSITION: QOC EB - May $10c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/omni.html
Play Date: 12/04/2006
ORCL (Oracle--$19.28; +0.47; optionable): Application software
http://biz.yahoo.com/p/o/orcl.html
STATUS: Ascending base. Volume was up as ORCL again tested the 50 day SMA (18.67) on the low and then turned back up for a nice gain. Money flow remained strong all during this 8 week base. ORCL made us some money on its last big move in September, and it looks ready to make the break from this current pattern to make us some more.
Volume: 47.473M Avg Volume: 41.019M
BUY POINT: $19.45 Volume=41M Target=$23.35 Stop=$18.55
POSITION: ORQ CT - Mar. $19c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/orcl.html
Play Date: 12/04/2006
WFR (Memc Electronic--$40.64; +0.48; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/w/wfr.html
STATUS: Cup. Good volume last week as WFR started higher off the 50 day EMA (37.02) and toward some resistance at 41 in the middle of its 7 month base. WFR is a leader in its sector, and it weathered the recent rockiness quite well. Nice base has set it up for a run at a 10 year and indeed an all-time high.
Volume: 3.6M Avg Volume: 4.38M
BUY POINT: $41.11 Volume=6.5M Target=$48.75 Stop=$38.65
POSITION: WFR DH - Apr. $40c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/wfr.html
Downside:
Play Date: 12/04/2006
CGNX (Cognex--$24.27; +0.42; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/c/cgnx.html
STATUS: Put. CGNX is in a continuing downtrend below the 200 day SMA (25.60). It rallied back to test that level in mid-November but volume was low and it started to slide back down. Volume started to pick up as it slid lower, and Friday it crashed through the 50 day EMA (24.36). It tested back up Monday as volume backed off. Money flow remains in the tank, and after this bounce it is ready to head lower. A move to the target lands us a 42%ish gain.
Volume: 280.351K Avg Volume: 321.117K
BUY POINT: $24.12 Volume=335K Target=$22.51 Stop=$24.45
POSITION: QCG NE - Feb. $25p (-50 delta)
http://www.investmenthouse.com/cd/cgnx.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: Improving a bit, working laterally as the 10 day EMA rises to meet it and as volume backed off. That is what it needed after that higher volume churn to end November.
AKAM: Bounced off the 50 day EMA test but could not really power all the way to the close. Needs to clear 50 with some authority.
CELG: Nice break higher as it is a PFE buyout candidate given PFE jettisoned $800M worth of development costs as its drug test was a disappointment and it is likely going to look at buying its next drug.
DRIV: Working laterally over 57.50, trying to set up for the next move.
ISE: Still looks ready for more.
NVDA: Nice recovery; wasn't ready to sell off and break its trend just yet.
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 pick
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