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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: ACH; BMC; CHDX; CROX; RIO; QLGC; SBUX
Monday night play results:
AMX: Tested back on lower trade after the strong Monday move
STLD: Bouncing up off the 10 day EMA
WFR: Gapped higher out of the flying plateau
QLGC: Continuing lower as it fades from the 10 day EMA
New Plays:
Upside:
Play Date: 02/06/2007
AIR (AAR Corp.--$29.91; +0.38; optionable): Products and services for the aerospace, aviation, defense industries
http://biz.yahoo.com/p/a/air.html
EARNINGS: March
STATUS: Double bottom w/handle. A short 7 week pattern has formed using the 50 day EMA (28.07) as support for both legs. This is acting as the handle to a larger 10 month base. There have been some mega volume spikes every time the stock has dipped. Money flow is leading higher, and AIR started higher again Tuesday, following the money flow. Want it to clear the highs in the base on a return of strong volume.
Volume: 425.1K Avg Volume: 454.469K
BUY POINT: $30.22 Volume=680K Target=$35.95 Stop=$28.75
POSITION: AIR EF - May $35c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/air.html
Play Date: 02/06/2007
GLW (Corning--$22.37; +1.01; optionable): Glass fiber
http://biz.yahoo.com/p/g/glw.html
EARNINGS: Announced 1-24-07
STATUS: Double bottom. GLW is coming off the second leg of a 9 month double bottom, coming off the second low hit in January. It surged off that bottom and then came back to test the 50 day EMA last week. It started back up and then surged Tuesday on very strong volume. Lots of buying in the stock and heavy buying in the options. Ready to move in as it continues this break higher.
Volume: 36.928M Avg Volume: 19M
BUY POINT: $22.57 Volume=22M Target=$27.45 Stop=$20.99
POSITION: GLW EX - May $22.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/glw.html
Play Date: 02/06/2007
NUVA (Nuvasive--$24.19; +0.07; optionable): Medical instruments
http://biz.yahoo.com/p/n/nuva.html
EARNINGS: 2-20-07
STATUS: Reverse head and shoulders. Nice low volume test this week after the strong move up to start February. Forming the right shoulder to its 9 week base that is setting up for another breakout to a new all-time high. Strong money flow is leading higher. Continued high volume spikes on upside sessions in the larger pattern shows some really strong buyers. We think this dip is going to lead to a strong surge higher with new money jumping in.
Volume: 156.456K Avg Volume: 232.56K
BUY POINT: $24.82 Volume=350K Target=$29.75 Stop=$23.54
POSITION: QNU FX - June $22.50c (68 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/nuva.html
Play Date: 02/06/2007
VRSN (Verisign--$25.77; +0.07; optionable): Intelligent infrastructure services
http://biz.yahoo.com/p/v/vrsn.html
EARNINGS: Announced 1-31-07
STATUS: Double bottom w/handle. VRSN is in a big, classic double bottom pattern. It gapped higher to start the month on some solid earnings, stalling out at the November high that marks the top of the handle in the 19 month base. It gapped lower way back in July 2006, and it has yet to fill the gap. Money flow is leading higher and it looks as if VRSN is now ready to fill that gap.
Volume: 2.553M Avg Volume: 3.419M
BUY POINT: $26.21 Volume=4M Target=$30.32 Stop=$24.77
POSITION: QVR FE - June $25c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/vrsn.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: Jobs is making a play to get the big labels to remove their recording blocks as Apple tries to corner the market on the downloadable music. Doji at the 90 day MA. May be getting close.
AKAM: Cold feet ahead of earnings but it sold hard. Have to be really careful here as it was the leader in 2006 and it reversed that Monday breakout.
GOOG: Trying to use the 90 day MA to make a bounce.
ISE: Gapping higher on strong volume as earnings were great. Has broken through the downtrend from November. On a test it is a buy.
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
stock recommendation
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