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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Weekend play results:
BMET: Gapped higher on a takeover bid
SOHU: Tried to make the move but no volume.
VSEA: Moving higher but closed well off the intraday run.
MA: Surged higher but gave back the move. Still holding the lateral range
EYE: Nice doji at the 18 day EMA
LIFC: Turned lower at the 18 day EMA on rising volume.
New Plays:
Upside:
Play Date: 12/11/2006
ANST (Ansoft--$27.95; +0.78; optionable): Electronic design automation
http://biz.yahoo.com/p/a/anst.html
STATUS: Cup w/handle. A quiet leader, ANST has set up a sweet little 8 week base right below the all-time high. Last week it came back to test the 10 day EMA (27.19) on low volume, holding Friday and then bouncing Monday. Needs a bit more trade as it makes the move, but hard to argue with this one as it continues to set up nice bases and break to new highs.
Volume: 208.813K Avg Volume: 254.426K
BUY POINT: $28.21 Volume=400K Target=$35.97 Stop=$26.55
POSITION: UZD DE - Apr. $25c (66 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/anst.html
Play Date: 12/11/2006
CYTC (Cytyc--$27.39; +0.13; optionable): Medical instruments
http://biz.yahoo.com/p/c/cytc.html
STATUS: Cup w/handle. CYTC broke higher to start the month, clearing a 4 week handle to its 10 month base. We are calling this a handle, but it is actually a test of the breakout, holding above the 10 day EMA (27.02) as it does. Nice action. Volume surged above average Monday as CYTC crouched for the continued breakout move. Strong money flow is screaming higher and we are ready to move in when CYTC shows us the move higher.
Volume: 1.293M Avg Volume: 891.48K
BUY POINT: $27.74 Volume=1.2M Target=$32.95 Stop=$26.75
POSITION: YQK BE - Feb. $25c (70 delta) or YQK EE - May $25c (69 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/cytc.html
Play Date: 12/11/2006
MNST (Monster Worldwide--$44.99; -0.42; optionable): Online jobs listings
http://biz.yahoo.com/p/m/mnst.html
STATUS: Test 200 day SMA. MNST broke through the 200 day SMA (44.13) last week ahead of the jobs report, moving on a big surge in above average volume. It then spent the past three sessions moving laterally on low, below average volume, testing that move. Moving up and forming the right side of its 7 month cup base. Nice test and looking for volume to return as MNST returns to the breakout run.
Volume: 827.179K Avg Volume: 1.623M
BUY POINT: $46.45 Volume=2.4M Target=$55.85 Stop=$43.98
POSITION: BSQ CI - Mar. $45c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/mnst.html
Downside
Play Date: 12/11/2006
ADM (Archer Daniels Midland--$33.69; -0.38; optionable): Agricultural commodities and products
http://biz.yahoo.com/p/a/adm.html
STATUS: Put. This was one of the ethanol plays, but the stock peaked in May and has struggled since. It tried to base through August, but in September it gave it up, starting the current downtrend that has bounced down the 50 day EMA (35.82) as it moves lower. Last week ADM made it up to the 18 day EMA (34.43) and that stalled it. In November it failed at that level as well after rebounding from a drop from the 50 day EMA. It has a few more rotations down the 18 day EMA on this selling. Looking to move in as it continues lower; volume jumped above average Monday as ADM sold off from the 18 day. A move to the target lands us a 49%ish gain.
Volume: 8.024M Avg Volume: 5.591M
BUY POINT: $33.57 Volume=5.5M Target=$31.50 Stop=$34.25
POSITION: ADM MG - Jan. $35p (-54 delta)
http://www.investmenthouse.com/cd/adm.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: Again unable to move above the 10 day EMA in its lower volume relief bounce after getting boxed around Thursday. Looks like a failed rebound attempt.
AKAM: Still moving higher after that strong breakout move Thursday.
CELG: Good bounce but no volume after holding the 18 day EMA.
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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trade stock
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