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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Full report issues Thursday.
New Post-Split Plays:
Play Date: 01/03/2007
ACH (Aluminum Corp of China--$25.03; +1.53; no options): Chinese aluminum
http://biz.yahoo.com/p/a/ach.html
STATUS: Cup w/handle. Strong volume Wednesday as ACH broke out from an 8 month base that has set up ACH for a run at a new all-time high. Nicely formed pattern with strong volume in December as it rallied to finish the cup, and then a fade in trade last week as it eased back to the 10 day EMA (23.35) last week to form the handle, the point where the last sellers are shaken out. Nice gap higher Wednesday on strong trade, and looking to pick up some positions as it continues higher and again on the first test of this breakout move.
Volume: 1.624M Avg Volume: 519.179K
BUY POINT: $25.22 Volume=525K Target=$29.95 Stop=$23.92
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/ach.html
Play Date: 01/03/2007
DBRN (Dress Barn--$23.87; +0.54; optionable): Apparel stores
http://biz.yahoo.com/p/d/dbrn.html
STATUS: Reverse head and shoulders. We exited last week to see how it and other retailers would respond at the first of the year, and DBRN sure looked solid Wednesday. It rallied to 24.61 on the high, and though it gave much of the move back it held a gain on strong, above average volume. We still want to see a strong move from it, but a good start for the year as it looks to make the break from its 8 month base.
Volume: 1.277M Avg Volume: 888.28K
BUY POINT: $24.32 Volume=925K Target=$28.95 Stop=$22.88
POSITION: DTQ FE - June $25c (50 delta) &/or Stock
http://www.investmenthouse.com/cs/dbrn.html
Leader:
Play Date: 01/03/2007
AKAM (Akami Technologies--$53.12; -0.47; optionable): Internet services for delivery of content and business processes.
http://biz.yahoo.com/p/a/akam.html
STATUS: 50 day EMA test. We exited AKAM last week as it weakened at the end of the year after leading tech stocks in 2006. We expected it to come back and test the 50 day EMA (50.55) and it did that Wednesday, tapping at the 50 day on the low and rebounding. It may still come back to snug up to the 50 day EMA before advancing, but if it rebounds sharply here over the 10 day EMA (53.52) we will look at new positions as this leader reloads after a test of a key support level.
Volume: 2.288M Avg Volume: 5.088M
BUY POINT: Aggressive: $52.65. Over 10 day EMA: 53.65. Volume=7.6M Target=$60.75 Stop=$50.42
POSITION: UMU EJ - May $50c (64 delta) &/or Stock
http://www.investmenthouse.com/cs/akam.html
Good Investing!
Jon L. Johnson and the Stock Split Report 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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