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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: FCSX; HURN JEC; UTHR; VCLK; VDSI; VSEA
New Plays:
Upside:
Play Date: 07/17/2007
RS (Reliance Steel--$62.95; +0.45; optionable): Steel fabrication
http://biz.yahoo.com/p/r/rs.html
EARNINGS: 7-19-07 before the open
STATUS: Double bottom w/handle. RS surged higher to start July, forming the right side of its 10 week base. The past three sessions it has started a lateral move on low, below average volume, forming the handle to the base, the part where the last sellers are flushed out. Excellent action heading into earnings, and we are looking at picking up positions tomorrow ahead of the close in anticipation if it does not make the break before the Wednesday close. Earnings play so that raises the risk level; it is that season. Like the strong pattern.
Volume: 798.703K Avg Volume: 1.204M
BUY POINT: $63.45 Volume=1.8M Target=$72.95 Stop=$60.84
POSITION: RS IL - Sept. $60c (63 delta) or RS LM - Dec. $65c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/rs.html
Play Date: 07/17/2007
SID (Companhia Siderurgical Nacional--$56.00; -0.09; optionable): Steel processing
http://biz.yahoo.com/p/s/sid.html
EARNINGS: 7-24-07
STATUS: Breakout test. SID surged higher last Thursday when the market broke out, making the breakout from its 7 week ascending base. That base consolidated the March to May run out of a larger 10 month cup with handle pattern. It is pulling back this week on below average volume, and we are looking for SID to come back a bit more to complete the test down to the 10 day EMA (54.82). It may not make it all the way back, but when it starts to bounce back on some solid trade we are ready to enter.
Volume: 959K Avg Volume: 1.039M
BUY POINT: Test 54.85ish and then $55.25 on the rebound. Volume=1.4M Target=$63.45 Stop=$53.76
POSITION: SID LK - Dec. $55c (57 delta, 132 OI) &/or Stock
http://www.investmenthouse.com/ci/sid.html
New buy point on a current position:
Play Date: 07/17/2007
CVX (Chevron-Texaco--$91.10; -1.02; optionable): Integrated oil and gas
http://biz.yahoo.com/p/c/cvx.html
EARNINGS: 7-27-07
STATUS: Test breakout. CVX is testing back toward the 10 day EMA (90.01) after the early July breakout from a 6 week flat base. Excellent surge higher that took CVX to a new all-time high. Looking for a full test of the 10 day and then a rebound on stronger trade to move in. One of those leaders that rallied and is making its test, setting up the next move. Note how CVX rallied on very solid upside volume and now trade is tailing off as it fades back. Unlike many energy stocks its selling volume is drying up, showing there is no wide scale dumping.
Volume: 9.742M Avg Volume: 9.583M
BUY POINT: $90.35 Volume=12M Target=$101.95 Stop=$88.88
POSITION: CVX LR - Dec. $90c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/cvx.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.
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trade stock
stock recommendation
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