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us stock market, stock recommendation
Begin part 3 of 3
Note: Part 2 will be forwarded after part 3.
THE PLAYS
Upside:
Play Date: 10/24/2007
BGC (General Cable--$71.23; -0.77; optionable): Cable and wire
http://biz.yahoo.com/p/b/bgc.html
EARNINGS: 10-31-07
STATUS: Cup w/handle. Taking a new run at BGC as it sets back up for a new run. Nice test back this past week, tapping at the 90 day SMA (69.20) on the Monday and Wednesday lows, then rebounding modestly. Forming a nice handle to its 15 week base, and all we have to do is let BGC continue to set up and then show us the breakout move.
Volume: 1.042M Avg Volume: 1.712M
BUY POINT: $72.11 Volume=2.6M Target=$82.95 Stop=$69.48
POSITION: BGC BN - Feb. $70c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/bgc.html
Play Date: 10/24/2007
BTU (Peabody Energy--$53.31; +1.34; optionable): Coal
http://biz.yahoo.com/p/b/btu.html
EARNINGS: 11-6-07
STATUS: Cup w/handle. Peabody has set up for a nice breakout once more, starting to make the move out of a 2 week handle Wednesday on a nice shot of above average volume. Solid and nicely formed 22 week pattern has set the foundation for the breakout and run higher.
Volume: 4.348M Avg Volume: 5.203M
BUY POINT: $53.66 Volume=7M Target=$64.45 Stop=$51.21
POSITION: BTU AJ - Jan. $50c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/btu.html
Play Date: 10/24/2007
CRNT (Ceragon Networks--$18.63; -0.25; optionable): Point to point wireless backhaul solutions
http://biz.yahoo.com/p/c/crnt.html
EARNINGS: Announced 10-22-07
STATUS: Cup w/handle. Forming a short handle to its short 4 week base formed using the 50 day EMA as support on the lows. Came to life in May after a long, long dormancy. Great run and it needed a breather to set back up for a new run. Strong volume Monday as it announced some excellent earnings. Spent Tuesday and Wednesday testing; may take another session or two to complete the handle. We just need to be ready to move in as it shows us the breakout move.
Volume: 1.418M Avg Volume: 1.601M
BUY POINT: $19.55 Volume=2.4M Target=$23.48 Stop=$18.18
POSITION: QMC CW - Mar. $17.50c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/crnt.html
Downside:
Play Date: 10/24/2007
DIA (DJ30 ETF--$136.50; +0.08; optionable)
http://biz.yahoo.com/p/d/dia.html
STATUS: Head and shoulders. As the Dow's pattern is weak we want to be ready to move in if it should break down. Hard sell off Friday below the 50 day EMA (136.88) and then a low volume rebound on the Dow back up to tap that level. This action indicates a lack of buyers on the rebound, and if it rolls over we will look to make a play on the downside run. A move to the target lands a 40%ish gain.
Volume: 22.584M Avg Volume: 17.641M
BUY POINT: $136.05 Volume=20M Target=$133.80 Stop=$136.95
POSITION: DAZ WG - Nov. $137p (-45 delta)
http://www.investmenthouse.com/cd/dia.html
Play Date: 10/24/2007
SPY (SP500 ETF--$151.48; -0.28; optionable)
http://biz.yahoo.com/p/s/spy.html
STATUS: Head and shoulders. Similar to the Dow, SP500 sold off hard through the 50 day EMA (151.51) last Friday and has made a lower volume rebound to test that level. Critical juncture for the large cap index and we just want to be ready if the market rolls over and SPY goes over with it; with this week pattern it is likely to do that on any further weakness.
Volume: 326.694M Avg Volume: 214.384M
BUY POINT: $151.18 Volume=20M Target=$147.70 Stop=$151.68
POSITION: SYH WV - Nov. $152p (-47 delta)
http://www.investmenthouse.com/cd/spy.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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us stock market
stock recommendation
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