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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: ICE; MR; NTGR; RIMM; SGR; AEO
New Plays:
Upside:
Play Date: 05/22/2007
ATHR (Atheros Communications--$29.34; +0.56; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/athr.html
EARNINGS: Announced 4-30-07
STATUS: Test breakout. ATHR broke out from a short 5 week double bottom base in April, a base that was part of a larger 13 month cup with handle. It rallied to 30 and tested back last week to the 50 day EMA (27.04), finding support at that key level. Volume jumped back above average the past three sessions as it found support and started higher. It cleared the prior rally closing high Monday, and we are looking to move in as it continues the run.
Volume: 1.839M Avg Volume: 1.561M
BUY POINT: $29.58 Volume=2.2M Target=$35.50 Stop=$28.05
POSITION: QRA IE - Sept. $25c (81 delta) &/or Stock
http://www.investmenthouse.com/ct/athr.html
Play Date: 05/22/2007
CMI (Cummins--$87.56; -0.28; optionable): Diesel engines, etc.
http://biz.yahoo.com/p/c/cmi.html
EARNINGS: Announced late April
STATUS: Test 18 day EMA. Big run for CMI to end April that ended with a gap higher and run higher before an intraday reversal. After that session and run it needed to test, and the current 4 week pullback to the 18 day EMA (87.61) is giving it that rest. Low volume shows no dumping, just a quiet, behind the scenes pullback. After that big surge higher on big volume to end the last run we need to see strong volume on the break higher to show the buyers are back in and it was not a blow off top that is leading to a collapse. It is not showing those indications as the pullback is orderly and on light volume, but strong upside trade is the best indication the buyers are ready to move back in and take CMI on a run to 100.
Volume: 1.316M Avg Volume: 2.287M
BUY POINT: $89.15 Volume=2.5M Target=$99.85 Stop=$86.95
POSITION: CDM IY - Sept. $87.50c (57 delta)
http://www.investmenthouse.com/ct/cmi.html
Downside:
Play Date: 05/22/2007
CTSH (Cognizant Technology--$78.69; +0.27; optionable): Business software
http://biz.yahoo.com/p/c/ctsh.html
EARNINGS: Announced 5-2-07
STATUS: Put. CTSH gapped lower on its earnings report to start the month, gapping below the 90 day MA near 87.50. It tumbled through the 200 day SMA (80.73) as well. When a stock falls through the 200 day SMA that means none of the big buyers want to support it anymore; indeed, they are still selling it. CTSH managed a relief bounce up to test that breach, tapping at the 200 day on the Tuesday high before rolling over to close flat. That kept it below that key resistance, showing sellers were still selling shares after a bounce. Looking to move in as it continues the break lower, following very weak money flow. A move to our target lands a 41%ish gain.
Volume: 2.139M Avg Volume: 2.091M
BUY POINT: $78.48 Volume=2.3M Target=$75.00 Stop=$79.45
POSITION: UPU SP - July $80p (-50 delta)
http://www.investmenthouse.com/ct/ctsh.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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trade stock
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