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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: CROX; OCR; PRFT; SBUX
New Plays:
Upside:
Play Date: 06/07/2007
CX (Cemex SA--$38.13; -1.07; optionable): Cement
http://biz.yahoo.com/p/c/cx.html
EARNINGS: Announced 4-24-07
STATUS: Test breakout. Volume was well above average Thursday as CX came back to test the late May breakout from its 12 week cup with handle base (though a rather jagged cup). That high volume shows some dumping, but it showed good action, reaching down toward the 18 day EMA and then rebounding to hold above the late February high that marks the point the base started to form. Thus despite the 'baby out with the bath water' selling Thursday, CX' action was solid. It may come back a bit more to test the 18 day EMA (37.22) before it is ready, but have to like this action in a very weak tape.
Volume: 5.62M Avg Volume: 3.748M
BUY POINT: $38.57 Volume=4.5M Target=$44.85 Stop=$37.05
POSITION: CX JG - Oct. $35c (75 delta) &/or Stock
http://www.investmenthouse.com/ct/cx.html
Play Date: 06/07/2007
ICON (Iconix Brand Group--$21.97; -0.38; optionable): Multiple consumer apparel brands
http://biz.yahoo.com/p/i/icon.html
EARNINGS: Announced 5-1-07
STATUS: Double bottom w/handle. ICON is forming the handle to a 14 week base, tapping at the 18 day EMA on the Thursday low (21.72) and then bouncing to cut some losses. Volume was up, but overall trade on this short pullback is modest and the price action is contained and orderly. Looking for ICON to finish this test and then deliver the upside breakout to a new all-time high.
Volume: 1.318M Avg Volume: 956.394K
BUY POINT: $22.47 Volume=1.4M Target=$25.95 Stop=$21.29
POSITION: QIA KX - Nov. $22.50c (49 delta) &/or Stock
http://www.investmenthouse.com/ct/icon.html
Downside:
Play Date: 06/07/2007
AFFX (Affymetrix--$25.00; -0.71; optionable): Genetics analysis equipment for the life sciences and healthcare markets
http://biz.yahoo.com/p/a/affx.html
EARNINGS: Announced 4-25-07
STATUS: Head and shoulders. Volume moved up above average Thursday as AFFX broke below the 200 day SMA (25.21), starting the breakdown in its 4 month distribution base. Low volume peak in April that gave way to a gap lower. Very weak and when a stock moves through the 200 day SMA on rising trade that shows the big money is selling it. Looking to ride it lower. A move to the target lands a 48%ish gain.
Volume: 1.86M Avg Volume: 1.472M
BUY POINT: $24.82 Volume=1.5M Target=$23.25 Stop=$25.25
POSITION: FIQ SE - July $25p (-45 delta)
http://www.investmenthouse.com/ct/affx.html
Play Date: 06/07/2007
BIG (Big Lots--$30.00; -1.08; optionable): Discount variety stores
http://biz.yahoo.com/p/b/big.html
EARNINGS: Announced 5-31-07
STATUS: Put. Big gapped higher on its earnings but then reversed course on high volume. It tried to breakout from its 9 week base but it failed. It tried to set up above the 90 day SMA (30.40) but Thursday it broke below that level. There is a gap higher from March, and the inability to hold a gain on earnings indicates it is going to fill that gap down at 26ish. Our initial target is much more conservative, but if it is selling we will let it fade. A move to the target lands a 43% gain.
Volume: 3.02M Avg Volume: 2.514M
BUY POINT: $29.86 Volume=3M Target=$27.80 Stop=$30.45
POSITION: BIG SF - July $30p (-40 delta)
http://www.investmenthouse.com/ct/big.html
Play Date: 06/07/2007
FORM (Formfactor--$40.08; -0.86; optionable): Semiconductors
http://biz.yahoo.com/p/f/form.html
EARNINGS: Announced 4-25-07
STATUS: Head and shoulders. FORM broke lower from a 14 week distribution pattern in mid-May. It rebounded to test that breakdown, rising to the 18 day EMA (40.86) the past week. Volume was lower, and it could not make the break through that level. Thursday volume jumped as FORM faded from that resistance. Looking for it to continue the break lower as it resumes the trend lower after the breakdown. A move to the target lands a 44%ish gain.
Volume: 1.66M Avg Volume: 639.368K
BUY POINT: $39.94 Volume=650K Target=$37.91 Stop=$40.55
POSITION: AFU SH - July $40p (-44 delta)
http://www.investmenthouse.com/ct/form.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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