us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS:

Upside:

Play Date: 12/10/2007
AMX (America Movil--$64.13; -0.72; optionable): Latin American wireless
http://biz.yahoo.com/p/a/amx.html
EARNINGS: Mid- January
STATUS: Double bottom w/handle. A very nice pattern has developed over the past 9 weeks as AMX used the 200 day SMA in the November selling to form the two bottoms in its pattern. It rallied up through last week, and then started to form the handle last Thursday, the lateral move where the last sellers are wrung out. Nice action with volume jumping Monday, moving up to average. Getting ready to make the break higher, and the FOMC meeting may provide the catalyst.
Volume: 6.616M Avg Volume: 6.213M
BUY POINT: $65.62 Volume=9.3M Target=$75.45 Stop=$62.88
POSITION: AMX BM - Feb. $65c (49 delta) &/or Stock
http://www.investmenthouse.com/cd/amx.html

Play Date: 12/10/2007
CF (CF Industries--$95.76; +1.04; optionable): Ag chemicals
http://biz.yahoo.com/p/c/cf.html
EARNINGS: Last week of January
STATUS: Cup w/handle. Very nice action the past five weeks as CF used the November selling to test back to its 50 day EMA (83.68) and consolidate the September to October run following its last breakout. It bounced off the 50 day and formed the right side of the base to end November. Moved more or less laterally last week, then reached down to the 10 day EMA (92.66) on the Monday low and rebounded for a gain. Looks to have just about finished the handle shakeout and looking for a bounce on rising volume to give us the entry point. Another stock that has set up coincident with the FOMC decision, and that may provide the catalyst for the breakout. A top rated stock in terms of earnings growth rates.
Volume: 1.894M Avg Volume: 2.077M
BUY POINT: $97.38 Volume=3M Target=$111.98 Stop=$92.55
POSITION: CF BS - Feb. $95c (56 delta, 248 OI) &/or Stock
http://www.investmenthouse.com/cd/cf.html

Play Date: 12/10/2007
CMED (China Medical Technologies--$45.03; +0.01; optionable): Chinese medical instruments
http://biz.yahoo.com/p/c/cmed.html
EARNINGS: Announced 11-20-07
STATUS: Double bottom w/handle. A volatile but consistent market leader, CMED has made us a lot of money over the past six months. It is setting up to break higher once, more, forming a 6 week double bottom with handle, working on the handle right now with a low volume, lateral move the past two sessions, testing lower then rebounding to close flat. That is the shaking out of the sellers as they give up as the stock appears to stall just below the prior highs. Getting close, and we are just going to be ready to move in as CMED makes its breakout move.
Volume: 293.531K Avg Volume: 737.595K
BUY POINT: $45.68 Volume=1M Target=$54.95 Stop=$42.94
POSITION: QCY CI - Mar. $45c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/cmed.html

Play Date: 12/10/2007
LFC (China Life Insurance--$84.92; -0.73; optionable): Chinese life insurance
http://biz.yahoo.com/p/l/lfc.html
EARNINGS: Last week of January 2008
STATUS: Reverse head and shoulders. Forming this accumulation pattern at the bottom of its 7 week base. This past week saw LFC jump higher over the 50 day EMA (84.65) and then come back and use that as support Friday and Monday, a very good sign the move is going to stick. If it holds it has a clear shot back up toward the prior highs just over 100. That is the move we are looking to play. It gives us a great gain without having to plough new ground.
Volume: 1.156M Avg Volume: 2.132M
BUY POINT: $86.77 Volume=3M Target=$99.95 Stop=$84.39
POSITION: LFC DQ - Apr. $85c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/lfc.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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