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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 12/12/2007
HUM (Humana--$76.33; +1.44; optionable): Health care plans
http://biz.yahoo.com/p/h/hum.html
EARNINGS: 2-4-08
STATUS: Cup w/handle. Very nice pattern has formed the past 7 weeks as HUM sets up for the next breakout to a new all-time high. Just about right on all fronts with the pattern: used the 50 day EMA as the bottom of the cup, volume swelled to average or better as it moved up in late November to form the right side of the base and then faded this month as HUM tested and formed the handle, the shakeout to get rid of the last undecided holders. Volume jumped up above average Wednesday as HUM posted a gain, closing just over the 10 day EMA (75.93) and showing a tight doji on the candlestick chart. That can indicate the pullback is over, and looking for more volume as it makes the break higher. Doesn't hurt that it is in the healthcare sector in this market.
Volume: 1.896M Avg Volume: 1.647M
BUY POINT: $77.88 Volume=2.4M Target=$88.95 Stop=$75.15
POSITION: HUM BO - Feb. $75c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/hum.html
Play Date: 12/12/2007
SLB (Schlumberger--$97.65; +2.15; optionable): Oil and gas service company
http://biz.yahoo.com/p/s/slb.html
EARNINGS: Mid-January 2008
STATUS: Reverse head and shoulders. SLB is moving in a tight lateral range the past week, cruising just over the 50 day EMA (96.40). It is resting after coming off the bottom of its 8 week base, forming the right shoulder of a reverse head and shoulders that has formed at the bottom of the larger cup. Volume bumped up to average Wednesday as SLB showed a doji on the candlestick chart. It has put in its time of consolidation after a nice run March to October. Now we are looking for the new break higher to make us some nice coin.
Volume: 9.782M Avg Volume: 9.306M
BUY POINT: $99.75 Volume=14M Target=$114.95 Stop=$96.31
POSITION: SDB BT - Feb. $100c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/slb.html
Play Date: 12/12/2007
XTO (XTO Energy--$66.30; +2.36; optionable): Independent oil and gas. Splits 5:4 on 12/14/07
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Third week of January 2008
STATUS: Double bottom w/handle. Volume jumped Wednesday as XTO started the breakout move from its 6 week base formed with a pair of bottoms down at the 90 day SMA at 63. It is starting to move ahead of its split, and we intend to move in as it continues higher and ride it right on through and beyond as XTO plows new all-time high territory.
Volume: 4.721M Avg Volume: 3.363M
BUY POINT: $66.49 Volume=5M Target=$75.95 Stop=$63.78
POSITION: XTO BM - Feb. $65c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
Downside:
Play Date: 12/12/2007
FRE (Freddie Mac--$30.42; -0.89; optionable): Mortgages
http://biz.yahoo.com/p/f/fre.html
EARNINGS: Late February 2008
STATUS: Put. After a nasty plunge from October through the third week of November, gapping lower in mid-November when things really hit the fan. That was the last gasp move in that run lower and FRE rebounded to end November and start December, riding the sleigh of the holiday rally . . . at least to the 18 day EMA (now at 34.32). It started to weaken last week and then rolled lower Tuesday. Tried to bounce Wednesday, but rolled back again, both sessions on sharp volume. Looking for a dive back toward that prior low near 25; our initial target is more conservative, but if it is selling hard we will let some of the positions run after banking some gain. A move to the target lands a 45%ish gain.
Volume: 20.126M Avg Volume: 11.064M
BUY POINT: $29.97 Volume=14M Target=$27.04 Stop=$30.68
POSITION: FRE MF - Jan. $30p (-43 delta)
http://www.investmenthouse.com/ci/fre.html
Play Date: 12/12/2007
SDS (UltraShort S&P500 ETF--$52.75; -0.99; optionable)
http://biz.yahoo.com/p/s/sds.html
STATUS: Downside. This is one of those ETF's that moves inversely with the index it tracks. This one tracks the SP500 and as SP500 falls, it rises. Thus you buy it to go short, sell it to go long. We are looking to buy into it, i.e. playing the SP500 short.
Volume: 26.53M Avg Volume: 16.826M
BUY POINT: $53.96 Volume=21M Target=$60.75 Stop=$53.32
POSITION: SDS CZ - Mar. $52c (60 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/sds.html
Continuing plays:
CMED, CTRP, SNDA from the Chinese clan continue to look very good. IRM is solid. WFT from energy looks ready to buy on a further move higher.
Good Investing!
Jon L. Johnson and your IH Alerts Team
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 in 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 investment information
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