us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: GAP; UCTT

New Plays:

Upside:

Play Date: 03/07/2007
BW (Brush Engineered--$43.56; -1.05; optionable): Industrial metals, minerals
http://biz.yahoo.com/p/b/bw.html
STATUS: Breakout test. BW gapped out of a 12 week base in mid-February and galloped to near 50 on a huge earnings call. It started to pullback to test just ahead of the market selling, and as the market sold it used that to come back to near support at the 18 day EMA (43.07). Tuesday it jumped on stronger volume but sagged Wednesday. Still holding strong, showing excellent strength and getting ready to continue its breakout run.
Volume: 463.8K Avg Volume: 346.147K
BUY POINT: $45.05 Volume=520K Target=$51.85 Stop=$43.00
POSITION: BW FI - June $45c (51 delta, 72 OI) &/or Stock
http://www.investmenthouse.com/ci/bw.html

Play Date: 03/07/2007
LHCG (LHC Group--$30.30; +0.23; optionable): Home health care
http://biz.yahoo.com/p/l/lhcg.html
STATUS: Breakout test. LHCG surged out of an 11 week cup with handle to start March, surging to a new high on strong volume. Strong earnings were the culprit. Rallied to 32 and then pulled back this week on lower trade, tapping the 10 day EMA (29.56) on the Wednesday low and then rebounding for a gain. Volume surged higher on that move; nice low volume on the pullback, strong on the rebound. Ready to continue the breakout move.
Volume: 397.439K Avg Volume: 151.403K
BUY POINT: $30.74 Volume=225K Target=$35.45 Stop=$29.35
POSITION: HQC FF - Jun $30c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/lhcg.html

Play Date: 03/07/2007
VLO (Valero Energy--$59.80; +1.96; optionable): Oil and gas refining
http://biz.yahoo.com/p/v/vlo.html
STATUS: Double bottom w/handle. Volume kicked in Wednesday as VLO cleared the handle to its 7 month base. A big winner in 2005 and half of 2006, VLO needed a base to rest and then set up for its next run. With margins at $15 or more/bbl and the driving season coming, VLO is ready to run and it has room to run as well. Ready to start positions as it continues and then again on the test.
Volume: 21.928M Avg Volume: 11.296M
BUY POINT: $60.22 Volume=12M Target=$67.95 Stop=$57.95
POSITION: VLO FL - June $60c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/vlo.html

Downside: Getting ready for the next downside

Play Date: 03/07/2007
MA (MasterCard--$99.72; -4.27; optionable): Charge cards, etc.
http://biz.yahoo.com/p/m/ma.html
STATUS: Put. Big winner in 2006, MA has formed a broad top the past 9 weeks. Big intraday reversal in the second week of February as it disappointed on earnings. It tried to recover along the 50 day EMA (103.51); game try but it is failing as it broke lower below that level on sharper, above average volume Wednesday, closing below the 90 day MA (99.93). Looking for a further break lower to initiate the play. A move to the target lands a 42%ish gain, but it could sell closer to 90 on this move.
Volume: 5.146M Avg Volume: 3.149M
BUY POINT: $99.31 Volume=3.2M Target=$93.85 Stop=$102.11
POSITION: MA PT - Apr. $100p (-44 delta)
http://www.investmenthouse.com/ci/ma.html

Play Date: 03/07/2007
SPY (S&P Depository Receipts--$139.56; -0.14; optionable)
http://biz.yahoo.com/p/s/spy.html
STATUS: Put. SPY is setting up for another run lower for us after the one over the past week. It has rebounded from that selling, rising Tuesday and Wednesday, but it could not hold Wednesday's gain. Ready to move in if it continues lower from here. If it bounced a bit more we let it go higher, reset the buy point, and then play it again when the fall starts once more. A move to the target from the Wednesday close lands a 45%ish gain.
Volume: 115.254M Avg Volume: 73.43M
BUY POINT: $139.38 Volume=70M Target=$136.65 Stop=$140.32
POSITION: SFB PJ - Apr. $140p (-47 delta)
http://www.investmenthouse.com/ci/spy.html

Good Investing!
Jon L. Johnson and your IH Alerts 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