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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS
Upside:
Play Date: 11/07/2007
GPRO (Gen Probe--$67.28; -0.48; optionable): Probe-based products for diagnosis
http://biz.yahoo.com/p/g/gpro.html
EARNINGS: Announced 10-30-07
STATUS: Test 50 day EMA. During all of the market volatility GPRO came back to test the 50 day EMA (66.81), testing the August to early October move higher that took GPRO to a new high. It is making an orderly test, showing some good price/volume action as it does (up on the upside sessions, down on the downside). Wednesday it showed a doji on the candlestick chart right at the 50 day EMA; that can signal the pullback is over and we are looking for a strong break higher on strong volume to move into positions. Good stock for a more defensive market.
Volume: 453.06K Avg Volume: 423.995K
BUY POINT: $68.31 Volume=600K Target=$78.68 Stop=$66.68
POSITION: PSU BM - Feb. $65c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/gpro.html
New buy point on a current position:
Play Date: 11/07/2007
ESRX (Express Scripts--$63.52; -1.46; optionable): Mail order prescriptions
http://biz.yahoo.com/p/e/esrx.html
EARNINGS: Announced 10-24-07
STATUS: Test breakout. ESRX is making the second test of its early October breakout from a 12 week ascending base. Strong leader ignoring the selling in the market: no matter what the economy, people are going to want to save money on their prescription drugs and order them mail order. Second test in a likely series of 4 to 5 bounces, and that gives us plenty of upside still. Looking for a test of the 10 day EMA (63.02) and then a bounce to move in.
Volume: 1.641M Avg Volume: 2.461M
BUY POINT: $63.66 Volume=2.6M Target=$74.95 Stop=$62.97
POSITION: XTQ BL - Feb. $60c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/esrx.html
Downside:
Play Date: 11/07/2007
A (Agilent Technologies--$35.09; -1.04; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/a/a.html
EARNINGS: 11-15-07
STATUS: Put. A has made a second umbrella top the past 8 weeks, breaking lower on Monday. It bounced with the market Tuesday and then sold it harder Wednesday after failing to get back through the 200 day SMA (35.98). Money flow is heading lower ahead of price and A looks ready to move to the B list as it heads back down toward the August low at 30ish. Our target is much more modest than that, but if it is diving as it hits that level, we won't complain if it goes further. A move to the target lands a 40%ish gain.
Volume: 2.128M Avg Volume: 2.241M
BUY POINT: $34.89 Volume=2.2M Target=$33.25 Stop=$35.81
POSITION: A XG - Dec. $35p (-44 delta)
http://www.investmenthouse.com/ci/a.html
Play Date: 11/07/2007
ATI (Allegheny Technologies--$94.76; -5.43; optionable): Industrial metals and minerals
http://biz.yahoo.com/p/a/ati.html
EARNINGS: Announced 10-24-07
STATUS: Head and shoulders. You ever hear the one about the blonde and brunette in the elevator and the guy with a bad case of dandruff walks in? Well you are not going to hear about it here; maybe on my blog. Anyway, ATI has formed an 11 week head and shoulders pattern on the heels of a large umbrella top spanning March through July. This pattern formed on the rebound, but it is ready to break lower now. Wednesday it broke lower on stronger, above average volume after failing at the 200 day and 50 day EMA. Money flow is very weak and ATI is heading lower to follow it. Looking to move in as it continues the drop. A move to the target lands a 38%ish gain. The August low is much lower, and if it is moving steadily lower when it hits our initial target we will let it continue lower.
Volume: 2.347M Avg Volume: 2.417M
BUY POINT: $94.44 Volume=2.5M Target=$89.55 Stop=$95.65
POSITION: ATI XS - Dec. $95p (-48 delta)
http://www.investmenthouse.com/ci/ati.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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us stock market
stock recommendation
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