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us stock market, stock symbol
Begin part 3 of 3
THE PLAYS: Splitting the difference between some solid upside and some solid downside as the market is all over the place.
Upside:
Play Date: 11/12/2007
NKE (Nike--$62.60; +0.39; optionable): Just do it
http://biz.yahoo.com/p/n/nke.html
EARNINGS: Mid-December
STATUS: Test 50 day EMA. Broke out from a 13 week cup with handle base in early October and rallied to 67 the last day of October. Nice move and it has spent this month testing the move, coming back to tap at the 50 day EMA (61.20) on the lows the past three sessions, bouncing back each day. Monday it showed a good shot of above average volume as it tapped the 50 day on the low and bounced. Surged over 64 on the high before fading back to close. Good action showing some buyers are at the ready. Looking for another good move on volume to stick and give us an entry point.
Volume: 4.242M Avg Volume: 3.571M
BUY POINT: $63.44 Volume=5M Target=$71.95 Stop=$61.12
POSITION: NKE DL - Apr. $60c (66 delta) &/or Stock
http://www.investmenthouse.com/cd/nke.html
Play Date: 11/12/2007
PPDI (Pharmaceutical Product Dev.--$40.89; +0.46; optionable): Contract research medical labs
http://biz.yahoo.com/p/p/ppdi.html
EARNINGS: Announced 10-23-07
STATUS: Breakout test. Big surge on earnings that broke PPDI out of its 14 week cup with handle base, surging on very strong volume. It has come back to test that move, fading back on low volume to test the 18 day EMA (40.67) the past week. Volume picked up Thursday and Friday, indicating some buyers were moving back in. Just going to be patient and let it make the break higher once more on some good volume, and then we move in.
Volume: 743.628K Avg Volume: 731.602K
BUY POINT: $41.42 Volume=950K Target=$47.75 Stop=$40.41
POSITION: PJQ DH - Apr. $40c (56 delta, low OI) &/or Stock
http://www.investmenthouse.com/cd/ppdi.html
Downside:
Play Date: 11/12/2007
EBAY (Ebay--$32.89; -0.57; optionable): Online auctions
http://biz.yahoo.com/p/e/ebay.html
EARNINGS: Announced 10-17-07
STATUS: Put. EBAY has formed the left shoulder and head of a potential head and shoulders base. It tried to hold the 200 day SMA (34.08) to start October, but broke down last week, really falling on Thursday. It rebounded Friday on strong volume but after clearing the 200 day SMA intraday it faded. Monday it tapped the 200 day SMA on the high and then rolled over to close down. It has sold a bit already, but this breach and test of the 200 day SMA is significant. If it continues lower we are willing to venture some downside positions. A move to the target lands a 42%ish gain.
Volume: 17.467M Avg Volume: 15.374M
BUY POINT: $32.66 Volume=19M Target=$31.05 Stop=$33.32
POSITION: XBA XZ - Dec. $32.50p (-42 delta)
http://www.investmenthouse.com/cd/ebay.html
Play Date: 11/12/2007
GYMB (Gymboree--$34.73; 0.00; optionable): Kids clothing stores
http://biz.yahoo.com/p/g/gymb.html
EARNINGS: 11-20-07
STATUS: Put. GYMB sold down the 10 and 18 day EMA, failing at that point each time it tested it. Then it collapsed lower to start the month. After that plunge it rebounded the past week, rallying up to the 50 day EMA (35.52) on Friday and again Monday, but both days failing to hold a move above that level. Monday it showed a tombstone doji below the 50 day EMA; the name says it all with respect to what that symbol means. GYMB has had its bounce to come up for air after the trend lower below the 18 day EMA, and just as with a stock that is trending higher above the 18 day EMA and needs a test down to the 50 day EMA to reset the move, GYMB's test to the 50 day EMA is resetting the downside move. Want to see volume move up as it turns back down. A move to the target lands a 43%ish gain.
Volume: 1.025M Avg Volume: 939.6K
BUY POINT: $34.36 Volume=1.1M Target=$31.35 Stop=$35.65
POSITION: GQU XG - Dec. $35p (-46 delta)
http://www.investmenthouse.com/cd/gymb.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 symbol
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