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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Upside: Some plays for a market bounce. Just looking for a bounce from these, not necessarily a long engagement, and marriage is likely out of the question with the exception of maybe GILD. They were leaders in the last rally, they are testing or have tested the 50 day EMA, and are ready for a decent relief move. Outside of the test and hold of key support the patterns are not necessarily powerful. Thus we are going to look for a good surge and then the move starts to stall, we take what we can get, then get.
Play Date: 11/27/2007
ASIA (Asiainfo Hldgs--$10.47; +0.55; optionable): Chinese telecom software and security systems
http://biz.yahoo.com/p/a/asia.html
EARNINGS: Announced 10-25-07
STATUS: Test 50 day EMA. Taking another run at ASIA as it has held the 50 day EMA (10.13) and the July peak. This is a full test of the late October breakout move (on earnings) from its 15 week cup with handle base. Big breakout on strong volume, low, below average volume test of that move. Bounced Tuesday on rising though still below average volume, looking ready to follow the still rising money flow higher in a market bounce.
Volume: 385.042K Avg Volume: 481.345K
BUY POINT: $10.82 Volume=525K Target=$12.98 Stop=$10.11
POSITION: EUJ DB - Apr. $10c (65 delta, 193 OI) &/or Stock
http://www.investmenthouse.com/cd/asia.html
Play Date: 11/27/2007
GILD (Gilead Sciences--$44.49; +2.58; optionable): Biotech
http://biz.yahoo.com/p/g/gild.html
EARNINGS: Announced 10-18-07
STATUS: Double bottom. Big volume on a surge higher Tuesday as GILD set a short double bottom at the 50 day EMA (42.86) and broke over the mid-October peaks. It held the April and May highs in the prior base it broke out of in October. Money flow is strong and running higher ahead of price. Very solid stock and a good sector for a more defensive market. Looking to move in as it continues this break higher and clears the 'hump' in the pattern (44.64). Very nice.
Volume: 10.983M Avg Volume: 7.356M
BUY POINT: $44.77 Volume=7.8M Target=$51.89 Stop=$42.78
POSITION: GDQ BV - Feb. $42.50c (67 delta) &/or Stock
http://www.investmenthouse.com/cd/gild.html
Play Date: 11/27/2007
MON (Monsanto--$91.94; +2.61; optionable): Ag yes, but more of a biotech company now
http://biz.yahoo.com/p/m/mon.html
EARNINGS: Announced 10-10-07
STATUS: Test 50 day EMA. Another leader in the last rally, another 50 day EMA (88.07) test. Excellent breakout in mid-September and run higher to 100. It has tested back and we are looking for another run toward 100 in a market bounce.
Volume: 3.562M Avg Volume: 4.608M
BUY POINT: $92.32 Volume=5M Target=$104.95 Stop=$89.18
POSITION: MON AU - Jan. $90c (58 delta) or MON DS - Apr. $95c (45 delta)
http://www.investmenthouse.com/cd/mon.html
Play Date: 11/27/2007
MRK (Merck & Co.--$58.94; +1.35; optionable): Major pharma
http://biz.yahoo.com/p/m/mrk.html
EARNINGS: Announced 10-22-07
STATUS: Test 18 day EMA. Broke out from a nicely formed 20 week double bottom with handle base in late October; earnings were a factor. Rallied to 58 then fully tested the break higher, holding at the breakout point and the 50 day EMA (now at 55.19). It made some higher lows as the market sold, then on Tuesday it made the break over the prior highs at 58ish, surging on strong volume. Strong money flow is leading higher, and MRK is following it on strong volume.
Volume: 18.238M Avg Volume: 10.988M
BUY POINT: $59.29 Volume=12M Target=$68.31 Stop=$57.48
POSITION: MRK DL - Apr. $60c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/mrk.html
Play Date: 11/27/2007
RIMM (Research in Motion--$115.68; +4.14; optionable): Blackberry communication devices, etc.
http://biz.yahoo.com/p/r/rimm.html
EARNINGS: Announced 12-20-07
STATUS: Test 50 day EMA. Another leader in the last rally that is testing key support at the 50 day EMA (108.55) after a strong move up the 18 day EMA (113.59). Volume has bounced back above average this week as it bounced Tuesday. Looking for continues volume as RIMM makes a pre-holiday run.
Volume: 30.967M Avg Volume: 24.049M
BUY POINT: $116.22 Volume=32M Target=$133.95 Stop=$109.90
POSITION: RUL AU - Jan. $115c (57 delta) or RUL CU - Mar. $115c (54 delta)
http://www.investmenthouse.com/cd/rimm.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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stock recommendation
stock market recommendation
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