|
|
us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
New Plays:
Upside: Looking at some more solid upside plays that held up nicely during the selling and are ready to move higher in an overall market relief rally.
Play Date: 03/05/2007
ACL (Alcon, Inc.--$123.65; +0.92; optionable): Contact lens supplies, etc.
http://biz.yahoo.com/p/a/acl.html
STATUS: Test 50 day EMA. ACL gapped higher in early February on strong earnings, breaking out from a 5 month reverse head and shoulders that was part of a larger 15 month base. It rallied over 130 on the move and is testing. It was very stingy with its gains but then sold down to the 50 day EMA (121.33) in the market selling. Volume remained low on the move, indicating no real dumping, just moving lower in sympathy with the market. Volume was up Monday as it started to bounce off this level. Can make a nice, quick run and land us some solid gain in a rebound with the market.
Volume: 471.2K Avg Volume: 503.487K
BUY POINT: $125.05 Volume=650K Target=$135.00 Stop=$121.18
POSITION: ACL EE - May $125c (54 delta)
http://www.investmenthouse.com/ct/acl.html
Play Date: 03/05/2007
GAP (Great Atlantic & Pacific Tea--$32.50; +1.64; optionable): A&P stores, etc.
http://biz.yahoo.com/p/g/gap.html
STATUS: Test breakout. Strong volume Monday as GAP jumped off an 18 day EMA test on news of another acquisition. This is the second test of the breakout from a 10 month cup with handle. Big surge on volume in mid-February, a test of the 18 day EMA, another surge before testing back with the market last week. Nice quick test and rebounding. Ready to move in as it continues higher from here. Solid stock and even though it is a defensive play that is good for this market, it is also a stock that can cover some real estate.
Volume: 1.96M Avg Volume: 423.985K
BUY POINT: $32.82 Volume=450K Target=$37.75 Stop=$30.98
POSITION: GAP HF - Aug. $30c (51 delta) &/or Stock
http://www.investmenthouse.com/ct/gap.html
Play Date: 03/05/2007
ICE (Intercontinental Exchange--$137.11; -1.47; optionable)
http://biz.yahoo.com/p/i/ice.html
STATUS: Test 50 day EMA. ICE made us some strong coin on its last run, moving up the 10 and 18 day EMA on through the end of February. It rallied on into the selling, and after hitting 167 it gapped lower Tuesday in the market sell off. It tried to hold but slipped on down to the 50 day EMA (135.83) Friday, showing a nice tight doji Monday right on that level. Exchanges are doing a hefty amount of business with this selling and that means lots of commissions. Looking for a bounce off this doji to give us an entry point for a rebound that may not make us the sack full it made before, but it has plenty of room to run upside.
Volume: 8.37M Avg Volume: 3.923M
BUY POINT: $138.68 Volume=6M Target=$160.00 Stop=$134.68
POSITION: ICE FX - June $140c (57 delta)
http://www.investmenthouse.com/ct/ice.html
Play Date: 03/05/2007
RYI (Ryerson Tull--$34.43; -1.00; optionable): Metal fabrication
http://biz.yahoo.com/p/r/ryi.html
STATUS: Breakout test. Big breakout in mid-February as RYI cleared the highs in a 12 month base. String surge higher follows by a test of near support at the 18 day EMA (33.33) to end the month. Started back up this month, showing great volume Friday as it broke to a new 12 year high. Modest test Monday on lower, below average volume. Nice test, setting up the next break higher. Super money flow is leading higher. Just looking for the break higher.
Volume: 904.2K Avg Volume: 1.114M
BUY POINT: $35.74 Volume=1.5M Target=$41.00 Stop=$33.24
POSITION: RYI FG - June $35c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/ryi.html
Play Date: 03/05/2007
VSEA (Varian Semiconductor--$46.20; -0.09; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
STATUS: Breakout test. VSEA has established itself as the leader in its sector. Strong move higher in mid-February on some solid earnings news broke VSEA out from a short 7 week base. Nice rally to 50, and you would expect it to get roughed up in the selling. It was lower but showed excellent relative strength, closing near the 18 day EMA on Friday and just above some support at 46. Gapped a bit lower Friday but rebounded close to flat. Looking for this level to hold and for VSEA to bounce from here as the overall market posts a relief rally.
Volume: 1.237M Avg Volume: 1.48M
BUY POINT: $48.05 Volume=2M Target=$54.95 Stop=$45.31
POSITION: UES EI - May $45c (61 delta, low OI) or UES HJ - Aug. $50c (50 delta) &/or Stock
http://www.investmenthouse.com/ct/vsea.html
CONTINUING PLAYS:
Play Date: 03/03/2007
UCTT (Ultra Clean Holdings--$15.71; +0.13; no options): Gas & liquid delivery systems for semiconductor chip makers
http://biz.yahoo.com/p/u/uctt.html
EARNINGS: Announced 2-12-07
STATUS: Double bottom w/handle. Gapped lower Monday, tapping the 18 day EMA (15.18) on the low and rebounding for a modest gain on rising, average volume. Nice action in a weak market. Ready for the break higher. Very solid in a weak market. To recap: Earnings did not help UCTT out a lot, but the key was it kept working on its base, forming the second leg of a short but sweet 8 week base. Used the 50 day EMA (14.36) as support, a very good indication the buyers have stayed with it. Strong money flow to match a strong technical pattern that is ready to send UCTT off on another all-time high. Excellent action in a tough week for the market, and the test sets up the next run.
Volume: 589.258K Avg Volume: 517.64K
BUY POINT: $16.41 Volume=725K Target=$19.45 Stop=$15.26
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ct/uctt.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.
|
us stock market
stock recommendation
|
