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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 10/15/2007
BRCD (Brocade Communications--$9.15; -0.10; optionable): PC data storage
http://biz.yahoo.com/p/b/brcd.html
EARNINGS: Third week November
STATUS: Test breakout. BRCD surged Friday on strong volume, breaking out from a 7 month cup with handle of sorts. It formed a very nice handle with a lateral move over the 200 day SMA (8.53) after it rallied through that level in late September. After making that strong break higher Friday it took a low volume breather Monday. After this pause it looks strong enough to continue the run higher. When it does that is our cue to move in.
Volume: 6.095M Avg Volume: 10.588M
BUY POINT: $9.34 Volume=11M Target=$11.32 Stop=$8.77
POSITION: BQB AU - Jan. $7.50c (83 delta) &/or Stock
http://www.investmenthouse.com/cd/brcd.html
Play Date: 10/15/2007
DSX (Diana Shipping--$33.75; +0.75; optionable): Shipping
http://biz.yahoo.com/p/d/dsx.html
EARNINGS: First week of November
STATUS: Breakout test. Looking to pick up DSX again as it starts its second run following the early October breakout from its 10 week base. It surged last Thursday and then reversed along with the market. It fell back to the 10 day EMA (32.02) Thursday and Friday on the lows and then bounced Monday on continued above average volume. Looking to move in as DSX makes its second run after testing the breakout move, and that leaves plenty of upside for us as it runs higher.
Volume: 2.422M Avg Volume: 1.695M
BUY POINT: $34.04 Volume=2.5M Target=$40.95 Stop=$31.98
POSITION: DSX CG - Mar. $35c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/dsx.html
Play Date: 10/15/2007
MTW (Manitowoc--$46.55; -0.69; optionable): Farm and construction machinery
http://biz.yahoo.com/p/m/mtw.html
EARNINGS: 10-31-07
STATUS: Breakout test. MTW broke out from its 10 week cup with handle base in early September. It is making its second test of that breakout, tapping at the 18 day EMA (45.82) on the Thursday and Monday lows and then bouncing up. Nice low volume on the tests and looking to move in as MTW breaks higher on some rising trade and heads toward a new all-time high.
Volume: 1.043M Avg Volume: 1.905M
BUY POINT: $47.65 Volume=2.1M Target=$55.85 Stop=$46.77
POSITION: MTW AW - Jan. $47.50c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/mtw.html
Downside:
Play Date: 10/15/2007
AMR (AMR Corp.--$24.26; -0.88; optionable): Airlines
http://biz.yahoo.com/p/a/amr.html
EARNINGS: 10-17-07 @ 12:00ET
STATUS: Put. Oil prices are rising higher and higher, and while gasoline prices are steady to falling because of the end of the drive season, jet fuel prices will not because of the busy holiday season. Thus we are looking to play AMR to the downside, ahead of its earnings if it gives us the move lower. It rallied up to the 90 day SMA (25.06) this month but had been unable to push through. It turned back down Monday once more and we are looking to enter as AMR pushes to the downside. A move to the target lands a 48%ish gain.
Volume: 7.576M Avg Volume: 7.972M
BUY POINT: $23.92 Volume=8M Target=$21.88 Stop=$24.65
POSITION: AMR WE - Nov. $25p (-53 delta)
http://www.investmenthouse.com/cd/amr.html
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
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