us stock market, stock split

Begin part 3 of 3

THE PLAYS: Just looking for some solid upside plays as we have taken several downside & need to let them run some or others set up better.

Upside:

New Pre-Announcement Play:

Play Date: 11/15/2007
BWA (Borg Warner--$99.98; +0.43; optionable): Auto parts (powertrain components and systems). Splits 2:1 on 12-18-07
http://biz.yahoo.com/p/b/bwa.html
EARNINGS: Announced 10-25-07
STATUS: Breakout test. Making the second test of its breakout from a 10 week breakout, coming back to the 18 day EMA (99.70) the past week and holding that near support. Tried to make the move on the split announcement Thursday but faded back to close flat. Excellent money flow and still looks great to continue the breakout run.
Volume: 740.105K Avg Volume: 450.771K
BUY POINT: $101.21 Volume=675K Target=$111.45 Stop=$99.89
POSITION: BWA AT - Jan. $100c (55 delta, 146 OI)
http://www.investmenthouse.com/cs/bwa.html

Play Date: 11/15/2007
D (Dominion Resources--$90.68; +0.13; optionable): Electric utilities. Splits 2:1 on 11-20-07
http://biz.yahoo.com/p/d/d.html
EARNINGS: Announced 11-1-07
STATUS: Ascending base. Nice lateral move the past two weeks as D bangs up and down between 90 and 92. It is consolidating the late October spurt higher, resting right below the April and May high that mark the top of the base. Gapped lower to the 18 day EMA on the Thursday open then rebounded on rising volume to post a modest gain. Nice set up to move higher, and this stock is in the right sector for a market turning more defensive. Looking for a bounce and run into the split.
Volume: 1.589M Avg Volume: 1.84M
BUY POINT: $92.24 Volume=2M Target=$99.95 Stop=$80.05
POSITION: D AR - Jan. $90c (54 delta)
http://www.investmenthouse.com/cs/d.html

New Post-Split Play:

Play Date: 11/15/2007
FLO (Flowers Foods--$22.82; +0.09; optionable): Processed and packaged foods and goods
http://biz.yahoo.com/p/f/flo.html
EARNINGS: Announced 11-8-07
STATUS: Double bottom with handle. FLO is working laterally in a tight range this week, testing a strong surge on its earnings results from the week prior. It came close to the breakout from its 22 week base on the earnings announcement, but it ran a long way and needed a breather before taking on the high. Nice easy lateral test, refusing to give up its gains as it makes the move. Very solid action and we are just going to be patient and let it show us the breakout move. Another stock that is in a good sector for a market that is defensive.
Volume: 602.9K Avg Volume: 470.798K
BUY POINT: $23.05 Volume=706K Target=$26.50 Stop=$22.05
POSITION: FLO AX - Jan. $22.50c (59 delta, 170 OI) &/or Stock
http://www.investmenthouse.com/cs/flo.html

Leader Play:

Play Date: 11/15/2007
FSLR (First Solar--$190.95; +5.56; optionable): Solar semiconductors
http://biz.yahoo.com/p/f/fslr.html
EARNINGS: Announced 11-7-07
STATUS: Test breakout. FSLR sparked the latest solar surge with its strong earnings that gapped it higher on a tremendous surge. It broke out from an 11 week base in early October and made some steady bounces higher but then exploded. It has come back to test this week, holding at the 10 day EMA (181), the near support on this move. May take another couple of days to complete the test, but looking solid to make the next run. A lot like BIDU was back in September and October, capable of ripping off huge chunks of real estate in a hurry. Once this test is over it will be ready to do that again.
Volume: 4.371M Avg Volume: 3.235M
BUY POINT: $193.24 Volume=5M Target=$225.00 Stop=$188.78
POSITION: HJQ CS - Mar. $195c (56 delta)
http://www.investmenthouse.com/cs/fslr.html

PRE-ANNOUNCEMENT PLAYS

We consider many stocks for pre-announcement plays every week. We get information regarding upcoming announcements and other data that leads us to conclude a split announcement is coming. Even then, however, we have to be discriminating. We have to see a strong technical pattern as well, and thus we reject many potential candidates based on a weak technical position.

The key today is to find stocks in strong patterns or that are ready to rebound off support. A split announcement will amplify the move higher in these cases as we enjoy moves from strong leaders in position to run higher. We won't chase a stock in a poor technical position even if we know it is going to split; it simply won't do us any good, i.e. it typically won't make us any money to the upside. We could list all stocks we think are going to split, but again, that won't make us any money unless we are in an office pool as to what stocks will or won't announce a stock split.

Current Pre-Announcement Plays:

This is a list of stocks we are looking to announce splits. We are not in all of the potential splits plays but are letting them set up for the next move. In each report we look at the candidates that are in the best patterns ahead of their potential announcements. This focus on leaders in good patterns allows us to make good money even if companies do not announce the split. The key with splits is the pattern and of course the strong earnings growth that put it in the pattern in the first place.

AAPL: Trying to hold the 50 day EMA and set something up but very volatile right now. Looking for an announcement IN January.

ATK: Giving us the test of the breakout.

ATW: Likely to announce in January. More whiplash action.

BUCY: Still the whiplash action.

COST: Forecast mid-December

EDU: Up and down, still managing to hold the 50 day EMA, but needs to set up better.

EOG: Anticipating an announcement in late January

HRS: Looking to January for an announcement.

ISRG: Looking to pinpoint a date. Hanging in there.

JEC: Still trying to hold the 50 day EMA

MA: Researching date.

MICC: Tentatively forecast for mid-December

RIG: Trying to hang onto the 50 day EMA as energy really struggled.

SID: Tentatively set for mid-November

STLD: Researching date. Making a stand at the 50 day EMA

SU: Researching date. Major struggle at the 50 day EMA and just waiting to see if it can set back up.

XTO: Announced its split but with energy under a lot of pressure it was unable to make anything out of it near term here.

CONTINUING PRE-ANNOUNCEMENT PLAYS

Play Date: 11/13/2007
COST (Costco--$66.34; +0.28; optionable): Discount warehouse stores
http://biz.yahoo.com/p/c/cost.html
EARNINGS: 12-13-07
STATUS: Flying plateau. Still working laterally over the 18 day EMA (66.05), holding the gains on the early October breakout move. Retail is getting hit, but COST is ignoring them because it is one of the retailers that thrives in a weaker economy because of its discount status and great following, much more so than WMT and its Sam's stores. Just being patient and looking for the break higher to move in. To recap: COST broke higher in early October, gapping to the upside on very strong volume as it broke out from a 9 week double bottom base. This last move broke COST out from a long 7 year base where it struggled to move higher. Money flow is still moving higher ahead of price and on Tuesday COST was up on stronger, above average volume. One of the best looking retailers out there, and with the issues relating to the economy ahead, it is showing very nice technical strength. Looking for a continued move higher on volume to move into some positions.
Volume: 4.629M Avg Volume: 4.831M
BUY POINT: $68.11 Volume=7.2M Target=$77.95 Stop=$64.77
POSITION: PRQ DU - Apr. $67.50c (58 delta) &/or Stock
http://www.investmenthouse.com/cs/cost.html

Play Date: 11/13/2007
HRS (Harris Corp.--$62.90; +1.70; optionable): Telecom equipment
http://biz.yahoo.com/p/h/hrs.html
EARNINGS: Announced 11-1-07
STATUS: Test 50 day EMA. Solid volume and price move Thursday as HRS picked up some steam off of the 50 day EMA (60.25). It cleared the early September high on the move, and it is a buy on a continued break higher. To recap: Nice surge on earnings took HRS out of an 8 week ascending base that used the 50 and 90 day SMA as support on the lows. Strong volume on the break higher as it ran to 66 on the breakout move. In the market selling it faded back and gave up the breakout, but it held at the 50 day EMA on the low and then broke higher Tuesday. Looking to move into HRS as it continues its move higher. Unlike many stocks it did not collapse in the selling, but held a key level and can move nicely off of that point.
Volume: 1.361M Avg Volume: 781.197K
BUY POINT: New: $63.04 (orig. $62.21) Volume=1.2M Target=$69.95 Stop=$59.95
POSITION: HRS BL - Feb. $60c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/hrs.html

Play Date: 11/10/2007
MA (MasterCard--$184.88; -1.89; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: Announced 10-31-07
STATUS: Breakout test. Still working laterally at the 10 day EMA (185.54) in its test of that strong earnings gap higher, showing a nice tight doji Thursday on low, below average volume. Strong money flow continues to move higher ahead of price, and we are just waiting for MA to resume the breakout move. To recap: When most of the credit service companies are struggling, MA is taking bags of money to the bank. It announced strong earnings to end October and gapped sharply higher, clearing an excellent 18 week cup with handle base. Big surge that took it to a psychological level at 200 on the move. It stalled there and came back to test the 10 day EMA on the session lows each session.
Volume: 2.071M Avg Volume: 3.662M
BUY POINT: $191.68 Volume=5M Target=$219.95 Stop=$186.22
POSITION: MAL AS - Jan. $195c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/ma.html

CONTINUING POST-SPLIT PLAYS:

Play Date: 11/05/2007
SCSC (Scansource--$34.64; -0.47; optionable): Specialty technology products
http://biz.yahoo.com/p/s/scsc.html
EARNINGS: Announced 10-25-07
STATUS: Breakout test. Continues its lateral move over the 18 day EMA (34.04) as it holds the late October gap higher and breakout move. Still ready to move and follow that strong money flow rising ahead of price. Just waiting for the big move higher on volume. To recap: Strong break higher on the earnings results, gapping out of a 17 week double bottom with handle base. It has come back to test the move, tapping at the 18 day EMA on the Monday low. Has not filled the gap but was moving up after it opened lower, and it may be some time before it does fill it. In other words, if it is moving higher on volume from here we won't wait for the fill as SCSC moves toward a bigger breakout from a 3 year base to a new all-time high.
Volume: 147.613K Avg Volume: 228.297K
BUY POINT: $34.89 Volume=375K Target=$41.95 Stop=$33.35
POSITION: UHI CG - Mar. $35c (55 delt, 66 OI) &/or Stock
http://www.investmenthouse.com/cs/scsc.html

Good Investing!
Jon L. Johnson and the Stock Split Report 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.

us stock market
stock split