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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: HURN; FLML; IDU; XLU
New Plays: Still many good stocks set for the upside
Upside:
Play Date: 06/20/2007
DWSN (Dawson Geophysical--$59.22; -1.61; no options): Oil and gas service company
http://biz.yahoo.com/p/d/dwsn.html
EARNINGS: Announced 5-2-07
STATUS: Test breakout. DWSN surged higher Tuesday on strong volume, clearing a 6 week lateral base over the 50 day EMA (53.11). The move took DWSN to an all-time high after the base consolidated a strong February to early May run. Wednesday it gapped higher and closed to the downside. Volume was still strong but lower. Looking for it to pullback some more to test near 57.50, the early May high, and then rebound on solid trade once more. That would be a great test of the breakout and set it up for a good run higher.
Volume: 374.83K Avg Volume: 178.678K
BUY POINT: $57.78 Volume=268K Target=$67.95 Stop=$55.28
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/dwsn.html
Play Date: 06/20/2007
JADE (LJ Intl.--$11.73; +0.47; optionable): Jewelry
http://biz.yahoo.com/p/j/jade.html
STATUS: Cup w/handle. Solid volume Wednesday, the first above average shot in four weeks, as JADE started off the 50 day EMA (11.02) that it used for support in the 5 week handle to its 16 week base. Excellent pattern has set up for a break to a new all-time high, and you have to like the action in a weak market. Solid money flow is leading higher.
Volume: 1.391M Avg Volume: 802.833K
BUY POINT: $12.31 Volume=1.4M Target=$15.45 Stop=$11.45
POSITION: UOD JV - Oct. $12.50c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/jade.html
Play Date: 06/20/2007
SPIL (Siliconware Precision--$10.93; -0.13; optionable): Chip equipment
http://biz.yahoo.com/p/s/spil.html
EARNINGS: Announced 4-25-07
STATUS: Double bottom with handle. After an excellent run from late January to early April, SPIL needed a breather before it could move higher. This is a very nice 10 week base formed over the 50 day EMA (10.22), a key support level that shows the big money is accumulating the shares. Volume jumped last week as SPIL broke higher off that support. It faded back this week after hitting the April highs, but it moved on very low volume, even on the Wednesday selling. It may come on back to the 10 day EMA (10.77) before it makes the move higher, but it is solid and want to be ready when it makes the next move.
Volume: 994.659K Avg Volume: 1.634M
BUY POINT: $11.28 Volume=2.5M Target=$13.65 Stop=$10.65
POSITION: QSP IB - Sept. $10c (78 delta) &/or Stock
http://www.investmenthouse.com/cd/spil.html
Play Date: 06/20/2007
SLB (Schlumberger--$84.76; -1.01; optionable): Oil and gas service company
http://biz.yahoo.com/p/s/slb.html
EARNINGS: Announced 4-20-07
STATUS: Test 10 day EMA. SLB broke out in April from a 12 month base. It has made two runs following that initial breakout and is now coming back to test again to set up the next run. Wednesday it tapped at the 10 day EMA (83.01) on the low and rebounded for a relatively modest loss. Volume surged as it tested then rebounded. Given the market condition it is likely to test toward the 10 day again before surging higher once more. When it comes off of that test we will be ready to move in once again.
Volume: 11.61M Avg Volume: 8.718M
BUY POINT: $83.45 Volume=9.5M Target=$95.95 Stop=$82.68
POSITION: SLB KQ - Nov. $85c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/slb.html
Downside:
Play Date: 06/20/2007
SCHN (Schnitzer Steel--$49.49; -1.00; optionable): Steel and iron
http://biz.yahoo.com/p/s/schn.html
EARNINGS: Announced 4-9-07
STATUS: Put. SCHN double topped with the May and early June highs at 55 and then skidded lower the first two weeks of June. It fell through the 50 day EMA (50.05) on that initial move and then rebounded the past week to test. It tried the 18 day EMA on the Wednesday high and then rolled over, falling back through the 50 day. Looking to move in as it continues lower. A move to the target lands a 42%ish gain.
Volume: 420.32K Avg Volume: 577.922K
BUY POINT: $49.31 Volume=585K Target=$46.25 Stop=$50.21
POSITION: SQQ TJ - Aug. $50p (-47 delta)
http://www.investmenthouse.com/cd/schn.html
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.
Keep them coming. Will choose the remaining plays this week to replace ISE (buy out), NYX (bomb out), and DRIV.
AAPL, AKAM, CELG, EDU, GME, GOOG, MA, PCLN, NVDA
AAPL: Made a lower high on the Monday gap, but managed to hold the 10 day EMA on the Wednesday close. AAPL is not in a position to buy right now, and after this run the real question is whether you hang onto it. Low volume Wednesday so no heavy sellers yet.
CELG: Turned back down and closed below the 90 day SMA (57.87). In trouble but it has held in this range.
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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trade stock
stock recommendation
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