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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: ALXN; STEC
Tuesday night play results:
FCX: Still in the handle. Volume remains elevated.
IDTI: Nope. Dumped lower on the same strong volume that sent it higher on Tuesday.
NFLD: Took a breather Wednesday after that strong Tuesday move.
SVVS: Another stock that took a day off after a strong Tuesday move.
New Plays:
Upside:
Play Date: 12/06/2006
BRCM (Broadcom--$34.49; +0.68; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
STATUS: Test 200 day SMA. BRCM did not test further but instead recovered the 200 day SMA (33.75) Wednesday. The stock is in the recovery mode after a big 2005 and a huge Q1 2006. After that you could stick a fork in it and it fell into the current 9 month base. It is now rebuilding, coming back to form the right side of the base in November. Looking for volume to come back in as it continues this move off of the 200 day and continues building the right side of its base.
Volume: 13.6M Avg Volume: 17.627M
BUY POINT: $34.72 Volume=18M Target=$41.72 Stop=$33.11
POSITION: RCQ EG - May $35c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/brcm.html
Play Date: 12/06/2006
DO (Diamond Offshore--$80.92; +1.56; optionable): Offshore oil and gas drilling
http://biz.yahoo.com/p/d/do.html
STATUS: Cup. Volume is coming back the past two weeks as DO starts up the right side of its 7 month cup base. It broke through the 200 day SMA (78.48) last week, tested that level Monday and Tuesday, and then was back up on Wednesday. A solid leader in the last energy run, DO is set up well to make another run here. Like how it has so much room to make its run without having to forge new high territory. Want to see a bit more volume as it continues this break higher after testing the 200 day SMA. Well positioned.
Volume: 3.512M Avg Volume: 3.851M
BUY POINT: $81.55 Volume=4.2M Target=$99.45 Stop=$78.32
POSITION: DO CP - Mar. $80c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/do.html
Play Date: 12/06/2006
NITE (Knight Trading--$18.67; +0.59; optionable): Investment brokerage
http://biz.yahoo.com/p/n/nite.html
STATUS: Double bottom. Volume jumped above average Wednesday for the first time in a month as NITE cleared the 'hump' at 18.55 in its 9 week base that formed using the 90 day MA (17.66) as support. NITE broke out from a 5 month base in August and rallied into mid-October, and this current base is a short consolidation of that move, setting up the next run. Money flow is strong and leading the way higher.
Volume: 1.887M Avg Volume: 1.552M
BUY POINT: $18.89 Volume=2M Target=$22.74 Stop=$17.78
POSITION: QTN DW - Apr. $17.50c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/nite.html
Play Date: 12/06/2006
NTGR (Netgear--$26.18; +0.49; optionable): Networking products for home and small business users
http://biz.yahoo.com/p/n/ntgr.html
STATUS: Breakout test. NTGR was a new issue in mid-2003. It is currently testing the breakout from a 14 month double bottom, the second big base for the stock since it IPO'd. It gapped higher in late October, blasting out of that base. It has spent the past 6 weeks testing, giving us a head fake along the way in mid-November. The past two weeks it has held above the 50 day EMA (25.47), however, working laterally, stopping the bleeding back on the test. Volume has jumped this week to average, moving above average Wednesday as NTGR started back up. Looking to move in on a further rally on volume as NTGR follows the money flow higher.
Volume: 839.085K Avg Volume: 686.132K
BUY POINT: $26.39 Volume=1M Target=$31.72 Stop=$24.98
POSITION: TUD CE - Mar. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/ntgr.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 through the 10 day EMA today on below average volume. It could be suffering from the late November distribution but nothing nefarious yet. If it continues we can look at selling some January $90 calls (QAA AR). They are selling for $5.20.
AKAM: Improving modestly on low volume as it works on its 9 week base above the 50 day EMA.
DRIV: Good Monday move was shoved right back down to the 18 day EMA.
GME: Still working higher up the 10 day EMA as it builds in more holiday sales.
MRVL: Volume moved up to just above average as MRVL cleared the highs in its lateral consolidation
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 investment information
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