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us stock market, trade stock
Begin part 3 of 3
THE PLAYS
Good movers: DO; FCX; HRS; PCLN; SAY; SLB
New Plays:
Upside:
Play Date: 07/21/2007
AVT (Avnet--$43.78; -0.55; optionable): Wholesale electronics distributor
http://biz.yahoo.com/p/a/avt.html
EARNINGS: 8-8-07
STATUS: Test breakout. AVT jumped sharply higher Thursday after news it was acquiring another company. The move broke it out of an 11 week flat base consolidating the strong January to April run from the breakout of a long, long base. Big 5 to 1 accumulation in this last base (5 up price weeks on rising volume to 1 down price weeks on rising volume) shows nearly all buying, setting AVT up for the breakout and next run higher. It may consolidate another session or two before continuing the run, but we will be patient and let it resume the move and then we make our move. AVT has some of the best earnings growth rates in the market and its strength shows it.
Volume: 2.281M Avg Volume: 1.93M
BUY POINT: $44.22 Volume=2.9M Target=$51.95 Stop=$41.78
POSITION: AVT KI - Nov. $45c (46 delta) &/or Stock
http://www.investmenthouse.com/ci/avt.html
Play Date: 07/21/2007
CMED (China Medical Technologies--$34.11; -0.21; optionable): Medical instruments
http://biz.yahoo.com/p/c/cmed.html
EARNINGS: Announced 6-18-07
STATUS: Test breakout. CMED exploded higher in mid-June on its earnings result, gapping it out of a big 17 month base. We were watching it at the time and the gap didn't give us anything to buy into. It has come back to test, however, holding above the 10 day EMA (33.55) on last week's lows. Volume was very low on the fade, showing no sellers, just a few profit takers after the break higher. We are looking for the next break higher on rising trade to enter this strong stock. Another play with some of the best earnings growth rates in the market right now.
Volume: 469.075K Avg Volume: 597.23K
BUY POINT: $35.15 Volume=896K Target=$41.95 Stop=$33.38
POSITION: QCY LG - Dec. $35c (47 delta) &/or Stock
http://www.investmenthouse.com/ci/cmed.html
Play Date: 07/21/2007
DRQ (Dril-Quip--$48.86; -0.62; optionable): Oil and gas service company
http://biz.yahoo.com/p/d/drq.html
EARNINGS: 8-1-07
STATUS: Double bottom w/handle. DRQ broke higher Thursday after a test of the 90 day SMA intraday Wednesday and then the rebound to the close with the market. Friday it tested; good action forming the handle to its 11 week base. This base formed after the March breakout and run up to a new high at 52. DRQ is consolidating that move and with the strength in the sector the earnings are showing, it is ready to make the next breakout to another new high. Very solid and yet another stock on the report that sports some of the top earnings growth rates in the market.
Volume: 277.2K Avg Volume: 530.322K
BUY POINT: $49.75 Volume=795K Target=$58.95 Stop=$47.55
POSITION: DRQ LJ - Dec. $50c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/drq.html
Play Date: 07/21/2007
RIO (Companhia Vale Do Rio Doce--$50.97; -0.84; optionable): Steel and iron
http://biz.yahoo.com/p/r/rio.html
EARNINGS: 7-31-07
STATUS: Test breakout. After a massive breakout and run from January to May, RIO turned a bit choppy, bobbing up and down in an 8 week trading range that lasted through early July. Just over a week back it gapped out of that range on strong volume then spent last week moving laterally on lower volume, testing the move as the 10 day EMA (50.34) played catch-up. Like how it refused to give any of the gains back on that move, instead consolidating in place. Now that the 10 day EMA has caught it we are looking for RIO to make the next break higher as the 10 day is often the catalyst after this kind of breakout and test.
Volume: 8.867M Avg Volume: 10.352M
BUY POINT: $51.96 Volume=12M Target=$61.95 Stop=$49.95
POSITION: RIO LJ - Dec. $50c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/rio.html
New buy point on current position:
Play Date: 07/21/2007
BIDU (Baidu.com--$189.50; -8.69; optionable): Chinese internet search
http://biz.yahoo.com/p/b/bidu.html
EARNINGS: 7-25-07
STATUS: Test 18 day EMA. BIDU had a tough week last week as it came back on the GOOG news. It had a strong, strong run behind it, so the test was rather normal. It also held the 18 day EMA (189.71) on the close, a typical place for a strong stock to start a new run. Earnings in April triggered this massive run and our gains in the stock. Now we are looking for some more life off of this test. GOOG's earnings were down but we don't expect the same from BIDU and thus we are looking to get in ahead of the results, sooner if it starts back up before then.
Volume: 4.396M Avg Volume: 2.888M
BUY POINT: $192.45 Volume=5M Target=$219.95 Stop=$185.89
POSITION: BDU IR - Sept. $190c (57 delta) or BDU LS - Dec. $195c (51 delta)
http://www.investmenthouse.com/ci/bidu.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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