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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ADS; AMAG; EZPW; FMD; FTEK; HET; ICE; IIG; NYX; SAY
Monday night play results:
JCOM: Gapped higher but closed off the high. Still solid.
OIS: Nice tight test of the break higher.
WFR: Closed well off the high but still ready to move.
CGNX: Doji below the 50 day EMA on low volume. Still ready to fall.
New Plays:
Upside:
Play Date: 12/05/2006
BRLI (Bio-Reference Labs--$24.45; -0.17; optionable): Clinical lab testing in NYC
http://biz.yahoo.com/p/b/brli.html
STATUS: Ascending triangle. BRLI has formed an 11 week triangle using the 50 day EMA (23.75) to make higher and higher lows below a constant top at 25. The higher and higher lows below that top is squeezing the watermelon seed and that seed is ready to squirt out. The breaks higher from these patterns can be explosive and BRLI is right at a new high.
Volume: 89.813K Avg Volume: 123.72K
BUY POINT: $25.05 Volume=186K Target=$29.95 Stop=$24.11
POSITION: BJQ BE - Feb. $25c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/brli.html
Play Date: 12/05/2006
CRDN (Ceradyne--$56.17; +2.06; optionable): Ceramic armor products
http://biz.yahoo.com/p/c/crdn.html
STATUS: Double bottom w/handle. Strong volume surge Tuesday as CRDN broke higher out of the three week handle to its 9 month base. After a strong surge from 2003 through 2005 CRDN needed a break before running again, and this current base has done just that. Volume has returned en masse starting in November when the stock moved off the bottom of the pattern and started forming the right side of its base. That is exactly what you want to see as it starts up. It then dried up during the handle to below average, again just what you want to see. Then the big volume breakout, also just what you want to see. Money flow is screaming higher. CRDN looks to follow it.
Volume: 1.582M Avg Volume: 830.155K
BUY POINT: $56.55 Volume=845K Target=$67.95 Stop=$54.95
POSITION: AUE CK - Mar. $55c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/crdn.html
Play Date: 12/05/2006
FCX (Freeport McMoran--$61.74; +0.81; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
STATUS: Double bottom w/handle. There are rumors swirling that BP or others might be interested in FCX. That news helped jump it off the 200 day SMA in November, and it has now spent the past two weeks moving laterally along the 10 day EMA, setting up for the next break higher in its 7 month base. That move will give it the breakout we are looking for. Tuesday volume was back up and above average as FCX showed a tight doji. Looks ready to make the next move.
Volume: 6.73M Avg Volume: 5.274M
BUY POINT: $63.08 Volume=7.9M Target=$72.95 Stop=$60.05
POSITION: FCX EM - May $65c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/fcx.html
Play Date: 12/05/2006
URBN (Urban Outfitters--$24.31; +1.65; optionable): Apparel stores
http://biz.yahoo.com/p/u/urbn.html
STATUS: Cup w/handle. Like it. Nice quiet handle for three weeks after a year long base, then a strong break higher Tuesday on strong volume. URBN has the attributes of a solid base with strong volume as it rallied to form the right side of the pattern, low volume during the handle, and then surging on the Tuesday breakout. Seeing a bit of this in the market and that is a healthy sign. Money flow is rampaging and URBN looks locked in to follow it higher. Been awhile, but it is ready. It also has a long way to run before it hits resistance; got to like that. A former leader ready to again assume the role of a leader.
Volume: 6.426M Avg Volume: 4.01M
BUY POINT: $24.75 Volume=400K Target=$29.95 Stop=$22.98
POSITION: URQ CX - Mar. $22.50c (72 delta) &/or Stock
http://www.investmenthouse.com/ci/urbn.html
Still ready to move:
ALXN
ISE
JCOM
OIS
WFR
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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