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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 10/31/2007
ABAX (Abaxis--$29.32; +1.15; optionable): Diagnostic substances
http://biz.yahoo.com/p/a/abax.html
EARNINGS: Announced 10-24-07
STATUS: Breakout test. ABAX blasted higher on its earnings report, clearing the handle in its 7 month cup with handle base. Very nicely formed pattern that set up ABAX for the break to a new all-time high on this move. It spend the past four days fading back to test, then bouncing Wednesday. No real volume Wednesday, but looking for more trade as ABAX continues higher after this breakout test. It may come back more to test as the 10 day EMA is down at 27.38, a point coincident roughly with the April high, the left side of the base. Either way we will look for a strong volume push higher to move in and get in on this stock that sports a great technical pattern to go along with very solid fundamentals growth rates.
Volume: 224.577K Avg Volume: 271.644K
BUY POINT: $29.55 Volume=365K Target=$35.55 Stop=$27.89
POSITION: QOX AE - Jan. $25c (80 delta) or QOK BF - Feb. $20c (45 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/abax.html
Play Date: 10/31/2007
BTU (Peabody Energy--$55.75; +0.01; optionable): Worldwide coal mining
http://biz.yahoo.com/p/b/btu.html
EARNINGS: 11-6-07
STATUS: Breakout test. Super breakout last week as volume surged and BTU cleared the handle in its 20 week cup with handle base. The breakout cleared the May high, a long term resistance point, and this test is setting that as solid support. Really like the low, low volume on the Monday and Tuesday pullback to test and then the strong volume as BTU tapped at the 10 day EMA on the Wednesday low and rebounded. Excellent set up for the move higher.
Volume: 5.928M Avg Volume: 4.763M
BUY POINT: $56.36 Volume=6.5M Target=$66.95 Stop=$54.55
POSITION: BTU CK - Mar. $55c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/btu.html
Play Date: 10/31/2007
JOYG (Joy Global--$58.06; +1.35; optionable): Farm and construction equipment
http://biz.yahoo.com/p/j/joyg.html
EARNINGS: 12.18-07
STATUS: Test breakout. JOYG broke sharply higher last week, clearing a three week handle to its 15 week cup with handle base. Strong volume as it broke higher through Monday and then a fade in trade as it tested on Tuesday. Volume was back up, however, Wednesday as JOYG started back up. That is solid price/volume action, just what you want to see as a stock sets up and makes its move. Has some nice room overhead to run before it hits resistance, and we are looking to play the rest of this move as far as it will take us.
Volume: 1.824M Avg Volume: 1.84M
BUY POINT: $58.31 Volume=2.2M Target=$66.95 Stop=$55.97
POSITION: JQY AK - Jan. $55c (65 delta) or JQY DL - Apr. $60c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/joyg.html
Play Date: 10/31/2007
XTO (XTO Energy--$66.38; +1.90; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Announced 10-23-07
STATUS: Breakout test. XTO has formed a short little reverse head and shoulders pattern the past three weeks, a pattern we are seeing in many stocks (e.g. CTRP; it just broke out from its short little pattern this week). It has formed as a test of the breakout three weeks back from a larger 15 week reverse head and shoulders base. Volume surged Wednesday, moving back above average as XTO bounced off the 18 day EMA, moving up to the recent highs and looking for yet another all-time high as it makes the break. Looks very good to continue higher.
Volume: 3.926M Avg Volume: 3.868M
BUY POINT: $66.84 Volume=4.5M Target=$76.95 Stop=$64.12
POSITION: XTO BM - Feb. $65c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
New buy point on a current position:
Play Date: 10/31/2007
SGR (Shaw Group--$74.60; +1.62; optionable): Power plant construction
http://biz.yahoo.com/p/s/sgr.html
EARNINGS: Announced 10-10-07
STATUS: Test breakout. SGR is making the second test of its early October breakout from a very nicely formed 12 week cup with handle base. Nice volume on the two surges higher, and Wednesday SGR tested the 10 day EMA (71.98) on the intraday low and rebounded for a solid gain on a second session of above average volume. Very strong with rising money flow and solid fundamentals underpinning the stock. Looking for a continued break higher on solid trade to move in and take some more positions on this great stock.
Volume: 1.495M Avg Volume: 1.202M
BUY POINT: $75.11 Volume=1.7M Target=$85.89 Stop=$71.78
POSITION: SGR AO - Jan. $75c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/sgr.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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