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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CXW; FCX; FLS; GLD; GLDN; ISE; PAAS; SPWR
New Plays: Still many strong upside plays as the market pushes toward the prior highs. We are looking at strong stocks in sectors that will hold up the best even if the market stumbles at those highs: Medical, materials, industrial, and a couple of e-commerce stocks in a sector that has been recovering nicely after long bases.
Upside:
Play Date: 04/14/2007
CX (Cemex SA--$34.79; -0.21; optionable): Cement
http://biz.yahoo.com/p/c/cx.html
EARNINGS: Late April
STATUS: Double bottom w/handle. After a very nice run from January to February. It needed a break and formed the current 7 week base to do just that. It rallied sharply to start last week, clearing the 'hump' in the double bottom. It faded back to form the handle, holding above the 50 day SMA (34.50) on lower volume. May take a couple more sessions to form up but solid action setting up another breakout and run higher.
Volume: 2.17M Avg Volume: 3.332M
BUY POINT: $35.65 Volume=5M Target=$40.99 Stop=$33.95
POSITION: CX GG - July $35c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/cx.html
Play Date: 04/14/2007
DRIV (Digital River--$56.27; +0.60; optionable): e-commerce solutions for software, high-tech, retailers
http://biz.yahoo.com/p/d/driv.html
EARNINGS: 4-26-07
STATUS: Ascending base. Volume jumped Friday as an upgrade helped push DRIV up through its early March high. It has now made a higher low in its 20 week base, setting up a break higher. We have been watching DRIV all through this base. It was a big winner for us in 2006 and we have been waiting for it to provide us another opportunity to make us some money. Looking for some more strong volume to take it higher in its base, following the strong money flow.
Volume: 1.313M Avg Volume: 1.28M
BUY POINT: $56.78 Volume=1.6M Target=$67.95 Stop=$54.68
POSITION: DQI IK - Sept. $55c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/driv.html
Play Date: 04/14/2007
EBAY (Ebay--$34.78; +0.73; optionable): Internet auctions
http://biz.yahoo.com/p/e/ebay.html
EARNINGS: 4-18-07 after the close
STATUS: Ascending base. EBAY broke over the highs in its 20 week base on Friday, posted the best volume in 4 weeks on the move. Breaking higher in a larger 15 month base EBAY has put forth a couple of upside earnings surprises in its last two quarterly reports, and we are anticipating another solid report as it continues to work its way out of this big base.
Volume: 17.82M Avg Volume: 17.541M
BUY POINT: $35.05 Volume=20M Target=$42.45 Stop=$33.38
POSITION: XBA GG - July $35c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/ebay.html
Play Date: 04/14/2007
ICE (Intercontinental Exchange--$129.79; +3.13; optionable)
http://biz.yahoo.com/p/i/ice.html
EARNINGS: 5-2-07
STATUS: Cup. Taking another look at ICE as it improved nicely to end last week, moving up to the 50 day EMA (130.07) on the Friday close as volume, while below average, jumped back up. If it can give us some strong volume as it moves through the 50 day we will look at opening some positions on the move. We will let it make that run, test it, and then as it turns up again we can add positions.
Volume: 3.137M Avg Volume: 4.98M
BUY POINT: $131.95 Volume=5M Target=$150.95 Stop=$127.55
POSITION: ICE FV - June $130c (55 delta) or ICE IW - Sept. $135c (44 delta)
http://www.investmenthouse.com/cd/ice.html
Play Date: 04/14/2007
PKI (Perkinelmer--$25.14; +0.48; optionable): Scientific instruments, services for life and analytical sciences.
http://biz.yahoo.com/p/p/pki.html
EARNINGS: 4-26-07
STATUS: Cup w/handle breakout. Excellent volume the past week as PKI prepared for the breakout from a nicely formed 8 week base that used the key 50 day EMA as support. This shorter base formed after the late January breakout from a larger 13 month reverse head and shoulders base. A good breather to set the stage for the next run higher. Money flow is strong, helping push PKI higher. Ready to move in as it continues higher and then again on a successful test.
Volume: 1.634M Avg Volume: 700K
BUY POINT: $25.35 Volume=1M Target=$30.45 Stop=$24.18
POSITION: PKI IE - Sept. $25c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/pki.html
Continuing plays ready to move:
AH
CELG
JCOM
NTGR
NUE
SMSI
VLCM
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, PCLN, NVDA, NYX
New additions: PCLN, NYX
AKAM: Still setting up well as it works laterally over the 50 day EMA. A break over 54 on strong volume is an entry point.
CELG: Still setting up well
ISE: Still moving well after breaking higher.
PCLN: Working on an 8 week ascending base, trying to put together a breakaway move.
NVDA: It looked like a double bottom, then it fell again. Then it surged on strong volume just to fade once more. It won't die, however, making a higher low last week. A move through 31 on volume in the 15M range is a buy
NYX: Trying to form a handle to a 14 week cup with handle base. May set us up a buy point this week.
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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us stock market
stock recommendation
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