stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: CROX; MA; NITE; PAY; SNDA; STEC; TWLL; WFR

Tuesday night play results
ADS: Still in the nice pullback to the 10 day EMA, setting up the next break higher.
HRZ: Continuing higher on lower volume.
XING: Moving higher but volume faded out.

New Plays:

Upside: Healthcare and medical setting up well.

Play Date: 01/17/2007
IMA (Inverness Medical--$39.76; -0.14; no options): Invitro diagnostic products for over the counter pregnancy tests
http://biz.yahoo.com/p/i/ima.html
STATUS: Reverse head and shoulders. Fading on low volume this week, setting up the right shoulder to its short 8 week pattern formed using the 50 day EMA (38.71) as support. After a good run from July, this base is consolidating the move, setting up the next run. A breakout takes it to a new all-time high. Strong leader preparing the next break higher.
Volume: 93.9K Avg Volume: 231.208K
BUY POINT: $40.25 Volume=350K Target=$46.95 Stop=$38.68
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ima.html

Play Date: 01/17/2007
REGN (Regeneron Pharmaceuticals--$22.51; -0.04; optionable): Biotechnology
http://biz.yahoo.com/p/r/regn.html
STATUS: Cup w/handle. Nice low volume, working laterally and forming a nice handle to its 9 week base. This is where the last sellers are shaken out. Once they are gone the stocks is free to make the breakout move. Nice pattern.
Volume: 283.735K Avg Volume: 578.121K
BUY POINT: $22.96 Volume=860K Target=$27.85 Stop=$21.55
POSITION: RQP EX - May $22.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/regn.html

Downside:

Play Date: 01/17/2007
SFD (Smithfield Foods--$24.80; -0.40; optionable): Pork
http://biz.yahoo.com/p/s/sfd.html
STATUS: PUT. SFD is running like a stuck pig. It peaked in September and has been wallowing ever since. It failed at the 50 day EMA in December and has been fading down the 18 day EMA since. It rallied to that level last week and then failed, starting to roll over for the next leg lower. Ready to move in as it continues downside, following the money lower. Hogs eat mostly corn as their feedstock, and with all of this gas about ethanol, an ear of corn doesn't fatten a hog fast enough. A move to the target lands a 44%ish gain.
Volume: 1.332M Avg Volume: 989.224K
BUY POINT: $28.78 Volume=1.4M Target=$27.75 Stop=$25.05
POSITION: SFD PE - Apr. $30p (-44 delta)
http://www.investmenthouse.com/cd/sfd.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: Was up on earnings then down on earnings.

AKAM: Nice lateral move at the 10 day EMA, making a higher low.

DRIV: Turning lower after a weak attempt at a test.

GME: Still working laterally and forming a nice handle.

GOOG: Fading back toward the 10 day EMA and filling that gap from last week. May be ready after this test.

MA: Sweet move higher.

NVDA: Turning down at the 50 day EMA.

WEBX: Failing the test of the 200 day SMA.

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.

stock recommendation
stock option