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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 12/08/2007
BIDU (Baidu.com--$390.00; -2.88; optionable): Chinese Google
http://biz.yahoo.com/p/b/bidu.html
EARNINGS: Third week of January 2008
STATUS: Double bottom w/handle. Working laterally the past week on lower, below average volume as it forms the handle to its 5 week base. Very nice low volume action, shaking out the final sellers before the break higher. It used key support at the 50 day EMA (333) on the low and is now setting up for the breakout move. It has made us some big money on past runs, and looking for volume to jump higher as BIDU makes the break from this pattern. This is a classic, textbook pattern. May take another session or two before it makes the break, meaning the FOMC announcement may provide the catalyst. Either way, this is one solid pattern.
Volume: 3.129M Avg Volume: 7.656M
BUY POINT: $395.22 Volume=9M Target=$454.00 Stop=$389.89
POSITION: BPJ AT - Jan. $400c (52 delta)
http://www.investmenthouse.com/cd/bidu.html
Play Date: 12/08/2007
DRYS (Dryships--$89.82; +6.17; optionable): Shipping. Splits 3:1 on a date to be announced.
http://biz.yahoo.com/p/d/drys.html
EARNINGS: Announced 11-6-07
STATUS: Reverse head and shoulders. Yes another one of these patterns, this one forming at the bottom of what is shaping up to be a cup base, currently 7 weeks into the process. Stocks often set up this pattern at the bottom of this type of base and make the breakout to carry it off the bottom of the base and form the right side. That can give us great gains as the stock surges back up toward the prior high, in this case 130. Volume was up Friday as DRYS posted a solid gain. Looking to move in as it floats higher and shows even stronger trade. Can really sail along when it gets going. It needed this base after that massive run, and this is setting it up for the next big run. Top sales and earnings growth rates.
Volume: 4.057M Avg Volume: 4.088M
BUY POINT: $92.22 Volume=6M Target=$110.95 Stop=$86.95
POSITION: DQR CR - Mar. $90c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/drys.html
Play Date: 12/08/2007
DSX (Diana Shipping--$34.65; +1.60; optionable): Shipping
http://biz.yahoo.com/p/d/dsx.html
EARNINGS: Announced 11-14-07
STATUS: Double bottom w/handle. Volume was rising Friday (though still below average) as DSX shipped higher, moving off of support at the 50 day EMA that held up the handle, heading toward the breakout from its 5 week base. Similar to DRYS, Diana enjoyed a big run in October when it broke out from its last base, and that gave us a very nice gain. It is setting up to ship out again and make us some more money. Looking for a continuing climb in volume as it makes the move through the buy point. Enjoys top flight earnings and sales growth rates.
Volume: 2.393M Avg Volume: 3.22M
BUY POINT: $35.48 Volume=4.2M Target=$42.75 Stop=$32.97
POSITION: DSX AG - Jan. $35c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/dsx.html
Play Date: 12/08/2007
GIGM (Gigamedia--$21.00; +1.18; optionable): Online gaming software and online portal
http://biz.yahoo.com/p/g/gigm.html
EARNINGS: Announced 11-14-07
STATUS: Cup. Strong volume to end the week as GIGM gapped higher, clearing the 50 day SMA (19.94) as it comes off the bottom of its 5 week base that consolidates the strong run from August through October. Excellent money flow is surging higher and GIGM is ready to follow it to a new high. And yet another stock with top notch earnings growth rates.
Volume: 1.949M Avg Volume: 1.348M
BUY POINT: $21.26 Volume=1.5M Target=$25.45 Stop=$19.89
POSITION: GBU DD - Apr. $20c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/gigm.html
Play Date: 12/08/2007
SNDA (Shanda Interactive Ent.--$38.43; +0.86; optionable): Chinese online gaming
http://biz.yahoo.com/p/s/snda.html
EARNINGS: Announced 11-28-07
STATUS: Reverse head and shoulders. Yep, another one of these accumulation patterns; when the market is up and down these tend to form. SNDA was not immune to the selling in November, falling hard ahead of its earnings report. That set up a big move higher, however, as earnings proved to be very strong. Big surge and then a fade to test, holding the 50 day EMA (35.84) on the low and then bouncing off that support starting Wednesday. Volume improved but it was not strong enough yet. Looking for that to improve as SNDA shows the breakout. May not be until the Fed speaks, but we can afford to wait.
Volume: 1.14M Avg Volume: 1.876M
BUY POINT: $39.11 Volume=2.2M Target=$49.95 Stop=$36.89
POSITION: QKU CH - Mar. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/snda.html
Play Date: 12/08/2007
SSRX (3Sbio, Inc.--$16.20; -0.23; optionable): Biotechnology
http://biz.yahoo.com/p/s/ssrx.html
EARNINGS: Announced 11-13-07
STATUS: Reverse head and shoulders. Another one of these patterns, this one forming at the bottom of a 4-week sell off to the 200 day SMA in late November. It bounced late month and is currently testing, forming the right shoulder over the 50 day EMA (15.42). Just going to be patient, let it finish forming the base, and when it breaks higher we move in. Top notch earnings growth rates. A new issue in February 2007, this is its second base, and that means plenty of upside ahead of it.
Volume: 228.518K Avg Volume: 578.957K
BUY POINT: $16.85 Volume=850K Target=$20.45 Stop=$15.67
POSITION: QXS CC - Mar. $15c (66 delta, Low OI) &/or Stock
http://www.investmenthouse.com/cs/ssrx.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
AAPL, AKAM, CELG, EDU, GME, GOOG, MA, PCLN, NVDA, VLO
AAPL: New high again. Just letting it run higher.
CELG: Nose-diving now that it has broken the 200 day SMA. That is an indication that the institutions no longer want it. Don't walk, run.
GME: Guitar Hero, Wii, etc. 'Tis the season for electronic games.
NVDA: Getting interesting here, trying to form a handle to a 7 week base. A strong move over the 50 day SMA (34.70) is a buy point.
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 recommendation
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