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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CRM; GIGM; ILMN; MDRX; RIO; CMVT; RNOW
Tuesday night play results:
DO: Powering higher on tremendous volume.
OII: Doji at the 50 day EMA keeps it in the game for a break higher
RIO: Nice, nice break higher.
GME: Bounced up off the 90 day. Will see how it reacts.
New Plays:
Upside:
Play Date: 01/31/2007
MER (Merrill Lynch--$93.56; +0.80; optionable): Investment brokerage
http://biz.yahoo.com/p/m/mer.html
EARNINGS: 1-18-07
STATUS: Test 50 day EMA. MER broke out from a 5 month cup with handle base in September and ran up the 10 and 18 day EMA through late November. After that run it needed a breather and came back to the 50 day EMA (now at 92). It held and then rebounded, riding up the 10 and 18 day EMA once more. In the recent selling it has come back to this key support at the 50 day again. Wednesday it held and started back up on rising, above average volume. Looking for it to clear the 10 day EMA at 94.37 and that is when we move in.
Volume: 6.058M Avg Volume: 5.035M
BUY POINT: $94.45 Volume=5.5M Target=$112.95 Stop=$91.76
POSITION: MER GR - July $90c (67 delta) or MER GS - July $95c (52 delta)
http://www.investmenthouse.com/cd/mer.html
Play Date: 01/31/2007
MS (Morgan Stanley--$82.79; +1.07; optionable): Investment brokerage
http://biz.yahoo.com/p/m/ms.html
EARNINGS: Third week of March
STATUS: 50 day EMA test. MS broke out from a 5 month base in August and rallied up the short term moving averages. It tested the 50 day EMA (now at 80.21) in November and again in December, in between continuing its run up the 10 and 18 day EMA. The past week it started to sell back with the other issues, but volume remained low as it came back. It tapped toward the 50 day EMA on three sessions, particularly Wednesday, and then on Wednesday it rebounded on strong, above average volume. It looks ready for action.
Volume: 5.814M Avg Volume: 4.141M
BUY POINT: $83.31 Volume=4.8M Target=$99.75 Stop=$80.55
POSITION: MS GP - July $80c (70 delta) or MS GQ - July $85c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/ms.html
Play Date: 01/31/2007
NTLI (NTL, Inc.--$27.25; +0.05; optionable): Telecom wireless communications
http://biz.yahoo.com/p/n/ntli.html
EARNINGS: 2-7-07. Date not yet confirmed
STATUS: Double bottom. NTLI has formed a 12 week double bottom, part of a larger base on base pattern, the first part a 7 month reverse head and shoulders that could not quite make the breakout. Money flow is surging higher ahead of the price, and this time it looks as if NTLI has the mojo to make the move.
Volume: 2.521M Avg Volume: 3.118M
BUY POINT: $27.42 Volume=4.5M Target=$31.55 Stop=$26.48
POSITION: NUD FE - July $25c (75 delta) or NUD FY - July $27.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/ntli.html
Play Date: 01/31/2007
SIMO (Silicon Motion Technology--$18.43; -0.17; optionable): Semiconductors for multimedia consumer electronics.
http://biz.yahoo.com/p/s/simo.html
EARNINGS: 2-1-07 after the close
STATUS: Breakout test. SIMO broke higher two weeks back from a 12 week cup base. It sold back in the market hiccups that made up some of the distribution, bouncing off the 18 day EMA (17.84) last week and then tested that level on the Wednesday low before rebounding on strong volume for a modest loss. It has earnings after the close Thursday, so taking positions is a more aggressive play. It is one of the top stocks in the market in terms of earnings growth.
Volume: 1.124M Avg Volume: 379.99K
BUY POINT: $18.85 Volume=550K Target=$22.65 Stop=$17.78
POSITION: MQI FT - July $17.50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/simo.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
CELG: Still testing the 90 day MA, working laterally. Volume shot higher above average Wednesday. That caught our eye and we are watching for the break higher.
GOOG: Reported great earnings again after hours but investors once again did not know what to do with it. Closed modestly lower but nothing damaging.
ISE: Dive bombing
WEBX: May be forming a handle here.
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 market recommendation
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