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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 12/13/2007
CMG (Chipotle Mexican Grill--$144.40; -0.77; optionable): Mexican fast food
http://biz.yahoo.com/p/c/cmg.html
EARNINGS: Lat January 2008
STATUS: Breakout test. CMG just continues to rally. It broke out in early December from a 5 week cup with handle formed over the 50 day EMA. Solid move higher through Monday and then tested back on the Fed news. Volume was low, so no selling. Then a further test lower Thursday and a rebound after tapping at near support at the 18 day EMA. Looking to move in as CMG continues higher on solid volume once more (Thursday trade rose to average).
Volume: 697.725K Avg Volume: 631.823K
BUY POINT: $145.38 Volume=7.5M Target=$167.45 Stop=$141.89
POSITION: CMG CV - Mar. $145c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/cmg.html
Play Date: 12/13/2007
CMI (Cummins--$124.14; -0.56; optionable): Engines, etc. Splits 2:1 on 1-3-08
http://biz.yahoo.com/p/c/cmi.html
EARNINGS: 2-1-07
STATUS: Double bottom w/handle. CMI is working laterally the past week, holding above the 50 day EMA (120.32) and the 90 day SMA (121.70) the past week, working on mostly below average volume. Got a bit rocky on Tuesday, but volume remained low. A solid volume surge Wednesday as CMI tested upside. Looking for it to finish this lateral move over the next couple of sessions and then make the break higher in a pre-split move.
Volume: 1.083M Avg Volume: 1.795M
BUY POINT: $125.88 Volume=2.5M Target=$144.95 Stop=$120.89
POSITION: CDM CE - Mar. $125c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/cmi.html
Play Date: 12/13/2007
NDAQ (Nasdaq Stock Market--$46.69; +1.31; optionable)
http://biz.yahoo.com/p/n/ndaq.html
EARNINGS: Third week of January 2008
STATUS: Cup w/handle. Excellent volume Monday as NDAQ started to surge higher, but it could not hold the move in the FOMC aftermath, selling back to the 10 day EMA (45.25) on lower volume. It held that level Thursday and started to bounce, but no volume. Looking for volume to rally as NDAQ continues this move higher toward a new all-time high. Very nice.
Volume: 1.706M Avg Volume: 2.914M
BUY POINT: $47.05 Volume=4M Target=$55.00 Stop=$44.55
POSITION: NQD CI - Mar. $45c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/ndaq.html
Play Date: 12/13/2007
PZE (Petrobras Energia--$12.38; -0.01; no options): Brazil oil and gas
http://biz.yahoo.com/p/p/pze.html
EARNINGS: Early February 2008
STATUS: Cup w/handle. PZE broke higher Wednesday on strong volume, moving out of a 5.5 month base on base. Strong volume on the move as it broke higher early this month. It then tested back to the 10 day EMA (11.93) on low volume; nice breakout test. Then volume came back in as it broke higher. Took a day off Thursday, but anticipating that PZE will continue the breakout move and ready to move in as it does.
Volume: 382.958K Avg Volume: 267.842K
BUY POINT: $12.59 Volume=400K Target=$15.25 Stop=$11.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/pze.html
Play Date: 12/13/2007
SLT (Sterlite Industries--$26.34; -0.76; optionable): Copper production in India
http://biz.yahoo.com/p/s/slt.html
EARNINGS: Mid-February
STATUS: Test 18 day EMA. A new issue in June 2007, SLT just finished breakout of its second base, gapping higher in late November and rallying to 29. The past week it is testing, coming back to tap at the 18 day EMA (25.89) on the Thursday low and rebounding to recoup half its losses and hold key support at the 18 day EMA as well as the tops of the prior pattern at 26. Looking for SLT to hold here and make the next move higher. That is when we move in.
Volume: 1.879M Avg Volume: 2.268M
BUY POINT: $26.88 Volume=2.4M Target=$32.95 Stop=$25.45
POSITION: SLT CE - Mar. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/slt.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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trade stock
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