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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
New Plays:
Upside: All of these plays have excellent earnings growth rates to go along with their strong patterns.
Play Date: 10/10/2007
CMED (China Medical Technologies--$40.48; +0.39; optionable): Medical instruments, China
http://biz.yahoo.com/p/c/cmed.html
EARNINGS: Late November
STATUS: Breakout test. Made us some great money as it broke out from an 8 week double bottom with handle in mid-September. It has come back to test that move this week, selling on strong volume at first, then holding at the 18 day EMA and moving laterally on low, below average volume. Part of a much larger 2 year base, and this pullback from the breakout is setting up the next move higher that will take it out of the larger base and to a new all-time high.
Volume: 314.846K Avg Volume: 748.435K
BUY POINT: $41.45 Volume=900K Target=$47.95 Stop=$39.72
POSITION: QCY AH - Jan. $40c (54 delta) &/or Stock
http://www.investmenthouse.com/ct/cmed.html
Play Date: 10/10/2007
CYNO (Cynosure--$41.17; +1.40; optionable): Medical appliances
http://biz.yahoo.com/p/c/cyno.html
EARNINGS: First week of November
STATUS: Breakout test. Strong volume the last couple weeks of September as CYNO surged higher and out of its 12 week cup base. It is making its first test, a short but nice fade to the 10 day EMA (39.40), holding that near support and the top of the base. Very nice action; love it when a stock is stingy with its gains. Started to surge back up on Wednesday with a strong, above average volume shot to go with it. Ready to move in as it continues the move higher.
Volume: 412.565K Avg Volume: 301.709K
BUY POINT: $41.65 Volume=450K Target=$49.95 Stop=$39.22
POSITION: QNO CH - Mar. $40c (57 delta, 82 OI) &/or Stock
http://www.investmenthouse.com/ct/cyno.html
Play Date: 10/10/2007
EDU (New Oriental Education & Tech--$68.00; +2.75; optionable): Chinese education and training
http://biz.yahoo.com/p/e/edu.html
EARNINGS: 10-15-07
STATUS: Test breakout. Taking another run at EDU after it got a bit rocky last week with some higher volume selling. It managed to hold the 18 day EMA (62.48) on the low and then rebounded. Volume jumped Wednesday as EDU broke higher, continuing the breakout run from its 11 week double bottom with handle base. Nice test that held up in the end, and now it is extending the breakout after the first test. Ready to move in as it continues higher.
Volume: 475.3K Avg Volume: 406.082K
BUY POINT: $68.31 Volume=475K Target=$78.95 Stop=$65.95
POSITION: EDU AN - Jan. $70c (51 delta) &/or Stock
http://www.investmenthouse.com/ct/edu.html
Play Date: 10/10/2007
GMKT (GMarket, Inc.--$25.89; -0.57; optionable): Retail e-commerce in Korea
http://biz.yahoo.com/p/g/gmkt.html
EARNINGS: Early November
STATUS: Test breakout. GMKT surged higher to start October, rallying on some very strong volume. That move took it out of an 8 week cup base that was part of a larger 10 month pattern. Nice surge up near 28 on the high and then a test the past week, coming back to hold the 10 day EMA (25.30). May take another session or two to finish the test, but already showing signs it is ready to continue the break higher.
Volume: 731.782K Avg Volume: 493.732K
BUY POINT: $26.88 Volume=750K Target=$32.45 Stop=$25.21
POSITION: QMF CE - Mar. $25c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/gmkt.html
Play Date: 10/10/2007
RVBD (Riverbed Technologies--$49.38; +2.20; optionable): PC networking and communication
http://biz.yahoo.com/p/r/rvbd.html
EARNINGS: 10-23-07
STATUS: Double bottom. Volume surged Wednesday as RVBD broke out from its 12 week base to a new all-time high. A new issue in September 2006, this is RVBD's second base, an excellent point to get involved with the stock. Looking for a continued move higher to take some positions. After such a strong move it may come back some before continuing higher.
Volume: 2.611M Avg Volume: 1.375M
BUY POINT: $49.72 Volume=1.4M Target=$57.45 Stop=$47.22
POSITION: UEX CJ - Mar. $50c (50 delta, 168 OI) &/or Stock
http://www.investmenthouse.com/ct/rvbd.html
CONTINUING PLAYS:
Play Date: 10/04/2007
DVN (Devon Energy--$87.05; +0.98; optionable): Independent oil and gas
http://biz.yahoo.com/p/d/dvn.html
EARNINGS: 11-7-07
STATUS: Double bottom w/handle breakout. Breaking higher off the 10 day EMA but no volume yet. That kept us out of it Wednesday. Would like to see some more trade as it continues to move in. To recap: Volume was up on Thursday as DVN made the break from a 15 week base. Volume was not huge, but it was definitely higher as it made the move to a new high. Nicely formed base has put in its time, and with money flow leading the way higher DVN looks ready to give us a nice breakout run that can make us some solid coin.
Volume: 2.237M Avg Volume: 3.416M
BUY POINT: New: From here if it sows some more volume (orig. $86.05) Volume=4M Target=$98.95 Stop=$83.88
POSITION: DVN AQ - Jan. $85c (53 delta) &/or Stock
http://www.investmenthouse.com/ct/dvn.html
Play Date: 10/08/2007
LZ (Lubrizol--$68.16; -0.68; optionable): Specialty chemicals
http://biz.yahoo.com/p/l/lz.html
EARNINGS: 10-26-07
STATUS: Reverse head and shoulders. After gapping higher Wednesday, LZ faded modestly Thursday, filling that modest gap. Volume was lower so no distribution, just testing. May come back some more, but want to be ready to move in as LZ turns back up. To recap: Volume was up though still below average Monday as LZ posted a solid price move and moved close to the breakout from its 17 week base. As with many stocks, LZ enjoyed a strong end to 2006 and a solid early 2007 and needed a consolidation to rest and set up the next move. Nice base has done than and now we look for a bit more volume from LZ as it moves to the breakout and the new high.
Volume: 465.2K Avg Volume: 544.821K
BUY POINT: $68.55 Volume=818K Target=$78.95 Stop=$65.94
POSITION: LZ LM - Dec. $65c (64 delta, 177 OI) or LZ CN - Mar. $70c (50 delta, 86 OI) &/or Stock
http://www.investmenthouse.com/ct/lz.html
Play Date: 10/06/2007
MT (Arcelor Mittal--$78.13; -0.12; optionable): Steel and iron
http://biz.yahoo.com/p/m/mt.html
EARNINGS: 11-15-07. Not confirmed.
STATUS: Breakout test. Still looking for MT to make the next break higher as it continues its lateral move after coming back to test the strong September run higher. Looking for this stock to pull an FCX and make the break higher and give us the entry point. To recap: MT is making the first test of a strong breakout from mid-September when it moved out of a 12 week reverse head and shoulders base. It rallied to just over 80 on that move and came back last week to test, holding just over the 18 day EMA (74.36) Thursday and then bouncing Friday on some stronger volume. It has moved well, but it looks as if it is going to try and duplicate that prior move and make a run toward 100.
Volume: 1.566M Avg Volume: 2.347M
BUY POINT: $78.42 Volume=2.4M Target=$90.45 Stop=$74.22
POSITION: MT AP - Jan. $80c (51 delga) or MT AO - Jan. $75c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/mt.html
Play Date: 10/08/2007
SPIL (Siliconware Precision--$12.09; +0.08; optionable): Semiconductor packaging and testing services
http://biz.yahoo.com/p/s/spil.html
EARNINGS: Early November
STATUS: Test breakout. Sold back some Tuesday but checked up at the 18 day EMA (11.85) on the Wednesday low. It rebounded to close right at the 10 day EMA, showing a doji on the candlestick chart. Still working laterally, still could take a few more days to finish the lateral consolidation, but still looks good for the break higher to continue. To recap: Nice mid-September break higher from a 10 week double bottom with handle base took SPIL up to 12.50 to end September. It has since come back to make the first test of the breakout, holding at the 18 day EMA last week on the lows. It bounced off that near support Friday on some very good, above average volume, and continued higher Monday though on much lower volume. Looking solid and we are ready to move in as SPIL continues the breakout move.
Volume: 920.174K Avg Volume: 1.846M
BUY POINT: $12.57 Volume=2.3M Target=$15.11 Stop=$11.74
POSITION: SUU AV - Jan. $12.50c (57 delta, 177 OI) &/or Stock
http://www.investmenthouse.com/cs/spil.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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