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us stock market, trade stock
Begin part 3 of 3
THE PLAYS:
Upside:
New Post-Split Play:
Play Date: 11/19/2007
WLT (Walter Industries--$32.42; -1.33; optionable): Industrial metals
http://biz.yahoo.com/p/w/wlt.html
EARNINGS: Announced 11-1-07
STATUS: Breakout test. Strong surge on its earnings report took WLT from 30 to 36 the first week of November. It has used the market selling to test that move, coming back to tap 32 on the Monday low, holding the May and July peaks that mark the top of its 5 month base. Strong money flow continues to lead higher even after this pullback. Looking for WLT to hold here and continue the breakout move.
Volume: 1.022M Avg Volume: 1.061M
BUY POINT: $33.77 Volume=1.6M Target=$39.95 Stop=$31.95
POSITION: WLT CF - Mar. $30c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/wlt.html
Continuing Plays:
Play Date: 11/17/2007
GOOG (Google--$625.85; -7.78; optionable): Internet search, etc.
http://biz.yahoo.com/p/g/goog.html
EARNINGS: Announced 10-18-07
STATUS: Test 50 day EMA. Lost some ground Monday but on lower, below average volume and still holding near the 50 day EMA (628.21), bouncing off the 50 day SMA on the intraday low. Being patient, letting it finish its test, and seeing if it will show us that upside break. To recap: Another one of the high fliers that broke its strong, strong uptrend along the 10 day EMA a couple of weeks back and flopped to the 50 day EMA. This comes after the September break higher from a 10 week cup base. The breakout and run higher up the 10 day EMA is normal action. The test of the 50 day EMA after 5 rotations up the 10 day EMA following the breakout is normal action. A strong stock will regroup at the 50 day EMA and then continue higher. Friday GOOG tested the 50 day SMA on the intraday low and then rebounded for a gain on the best volume since Monday. Now the expiration trade skewed the volume so we have to basically exclude that. We like, however, the hold at this key level, and if the market was in better shape this would be a no brainer. As it is, we want to see GOOG hold the line here and then post a strong volume break higher to show us the buyers are moving back in. We will move in as well and see if it can click off another run to 700 or the prior high near 735. We are using options given the price, though the options are not what you would call cheap.
Volume: 5.524M Avg Volume: 5.704M
BUY POINT: New: $633. 89 (orig. $639.11) Volume=8.6M Target=$699.75 Stop=$627.55
POSITION: GOO AH - Jan. $640c (53 delta)
http://www.investmenthouse.com/cs/goog.html
Play Date: 11/10/2007
MA (MasterCard--$181.90; -2.97; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: Announced 10-31-07
STATUS: Breakout test. Faded a bit Monday, but a nice, tight doji at the 18 day EMA (180.66) keeps the stock in good shape for the break higher. Just have to be patient and wait for the break higher. 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: 2.443M Avg Volume: 3.626M
BUY POINT: $187.31 (orig. $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
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.
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