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stock recommendation, stock market report
Begin part 3 of 3
THE PLAYS
New Plays:
Upside: Again we are putting some more upside on the report in anticipation of the relief bounce from this selling.
Play Date: 03/01/2007
BRCD (Brocade Communications--$9.01; 0.00; optionable): Data storage networking and solutions
http://biz.yahoo.com/p/b/brcd.html
STATUS: Cup w/handle. With the late 2006 run BRCD cleared a series of peaks that held it in check since 2003. After that run it needed a rest and it formed the current 13 week base over the prior peaks, using the 50 day EMA as support. It broke higher Tuesday on very strong earnings, testing back the past two sessions, holding the 10 day EMA on the Thursday low. It rebounded from that test, doing so on lower volume. Looks ready to continue the move but want to see strong volume as it jumps back up.
Volume: 15.498M Avg Volume: 10.143M
BUY POINT: $9.45 Volume=15M Target=$11.68 Stop=$8.79
POSITION: BQB GL - July $9c (63 delta) &/or Stock
http://www.investmenthouse.com/ct/brcd.html
Play Date: 03/01/2007
EXC (Exelon--$66.01; +0.08; optionable): Utilities
http://biz.yahoo.com/p/e/exc.html
STATUS: Test breakout. EXC surged out of a 16 week double bottom with handle last Friday, running to 72 on the move. It reversed this week and tested, coming all the way back to the breakout point at 64 on the Thursday low before rebounding intraday to close flat. Pretty big test, but it held the breakout and left itself in position for a good do over. Looking for volume to accelerate again as EXC continues higher off this test.
Volume: 3.498M Avg Volume: 2.736M
BUY POINT: $66.58 Volume=4M Target=$74.90 Stop=$64.68
POSITION: EXC GM - July $65c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/exc.html
Downside:
Play Date: 03/01/2007
VIX (CBOE Market Volatility Index--$15.82; +0.40; optionable)
http://biz.yahoo.com/p/v/vix.html
STATUS: VIX enjoyed a big spike in the wild market this week, rallying to 19 Tuesday and a bit higher on the Thursday high. The market recovery pushed it lower from that peak. If we get the relief move we anticipate after this blow lower, VIX will fall back down. We are looking to play that drop as the market rallies, then close it up. We can then look to play it to the upside when the relief move runs out of gas.
BUY POINT: $15.40 Target=$13.10 Stop=$16.25
POSITION: VIX PC - Apr. $15p
http://www.investmenthouse.com/ct/vix.html
Good Investing!
Jon L. Johnson and your Technical Traders Report Team
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 in 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 report
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