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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Thursday night play results:
CLE: Still in the nice test/handle.
HLTH: Ditto
JSDA: Tried the move but could not hold it as volume fizzed.
CMVT: Started lower on volume but managed to rebound to cut some losses. Still ready to fall.
QQQQ: Sold lower but then reversed. Then reversed again and close near the 18 day EMA. The higher volume close off the high suggests the downside lay is still on.
New Plays:
Upside:
Play Date: 12/09/2006
BMET (Biomet--$39.90; +1.17; optionable): Medical appliances
http://biz.yahoo.com/p/b/bmet.html
STATUS: Cup w/handle. Volume jumped above average Friday as BMET started the breakout move from its 8.5 month base. Low volume on the test the past 5 weeks that formed the handle, and now strong volume as it makes the breakout. Strong run from 1999 through 2004 needed a rest and this base has given it that, allowing this leader to set back up and run again.
Volume: 2.959M Avg Volume: 1.94M
BUY POINT: $40.12 Volume=2M Target=$47.95 Stop=$38.11
POSITION: BIQ DH - Apr. $40c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/bmet.html
Play Date: 12/09/2006
SOHU (Sohu.com--$24.98; +0.28; optionable): Chinese internet content, search, etc.
http://biz.yahoo.com/p/s/sohu.html
STATUS: Double bottom w/handle. Looking at SOHU again as it held the late November drop lower tapping the 200 day SMA on the intraday lows to start this month and then recovering to the 18 day EMA (24.53). Volume was up Friday as it tapped and started up toward a breakout from its 7 month base. Excellent money flow is leading higher and we are looking for SOHU to make the break higher to follow it.
Volume: 720.536K Avg Volume: 595.806K
BUY POINT: $25.55 Volume=894K Target=$29.95 Stop=$24.38
POSITION: UZK CE - Mar. $25c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/sohu.html
Play Date: 12/09/2006
VSEA (Varian Semiconductor--$41.55; +1.00; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
STATUS: Breakout test. VSEA is one of those chip stocks we mentioned that has held up well and is ready to move higher once more. It broke out from a 9 month double bottom in August and then formed a reverse head and shoulders in October and November. It has must tested the breakout from that base and has held up well, bumping up Friday at a new 6 year high as volume jumped. Looking to move in as it clears resistance.
Volume: 1.195M Avg Volume: 980.446K
BUY POINT: $42.22 Volume=1.4M Target=$48.95 Stop=$40.11
POSITION: UES EH - May $40c (64 delta, 62 OI) &/or Stock
http://www.investmenthouse.com/cd/vsea.html
New buy point on a current position:
Play Date: 12/09/2006
MA (MasterCard--$100.10; +0.42; optionable): Credit card services
http://biz.yahoo.com/p/m/ma.html
STATUS: Breakout test. MA is working in a two week lateral range, consolidating its huge run higher in November. It is holding the 10 day EMA (99.60) as it works laterally on low volume, refusing to give up its gains as it sets up for the next move. It ran to 100 and then suffered a bit of profit taking as is often the case at that level, but now it has consolidated and looking for a break higher from here.
Volume: 1.598M Avg Volume: 3.256M
BUY POINT: $101.05 Volume=3.5M Target=$119.90 Stop=$97.45
POSITION: MA DA - Apr. $105c (48 delta)
http://www.investmenthouse.com/cd/ma.html
Downside
Play Date: 12/09/2006
EYE (Visx--$36.34; +0.29; optionable): Medical instruments
http://biz.yahoo.com/p/e/eye.html
STATUS: Put. EYE has been in a downtrend since peaking in July. It fell to the 200 day SMA and then collapsed with a bit gap low. It tried to rebound, but could not make it far before cascading lower again. The past three weeks it has worked higher, back to the 18 day EMA (36.72), but on low volume. It looks to be stalling at that level and ready to continue lower. A move to the target lands a 55%ish gain.
Volume: 1.078M Avg Volume: 1.739M
BUY POINT: $36.04 Volume=1.8M Target=$34.51 Stop=$36.85
POSITION: EYE MG - Jan. $35p (-36 delta)
http://www.investmenthouse.com/cd/eye.html
Play Date: 12/09/2006
LIFC (Lifecell--$22.26; +0.26; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
STATUS: Put. LIFC was rocking along nicely into late October when it gapped massively lower. It tried a rebound but failed as it got within spitting distance of the 18 day EMA (22.63). It found bottom at the end of November and has struggled back up toward the 18 day EMA, but is starting to show some wear at that level. Looking for it to turn over again at this resistance and follow the weak money flow lower as well. A move to the target lands a 60%ish gain.
Volume: 723.363K Avg Volume: 1.052M
BUY POINT: $22.04 Volume=1.1M Target=$20.01 Stop=$22.75
POSITION: QKL MX - Jan. $22.50p (-48 delta)
http://www.investmenthouse.com/cd/lifc.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: Rebounded on lighter volume and fell back to close below the 18 day EMA after tapping the 10 day EMA on the high. That did not change the Thursday selling.
CELG: Doji at the 18 day EMA as it tries to turn back the Thursday dump lower to that level.
MRVL: Faded back but held the 10 day EMA were it looks as if it will try a move toward the 200 day SMA once more.
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
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