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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: Still looking upside as money shifts to the medical/health defensive areas as well as continues to find its way into energy.
Play Date: 01/07/2008
CPHD (Cepheid--$26.83; +1.11; optionable): Testing systems for molecular diagnostics used in medical, industrial, and biothreat industries
http://biz.yahoo.com/p/c/cphd.html
EARNINGS: First week of February
STATUS: Cup w/handle. Nice volume the past two sessions as CPHD breaks higher off the 18 day EMA (25.59). This is actually the first test of the mid-December breakout from its 8 week base, and the first test is one if not the favorite entry point for us. Nice breakout volume, nice low volume test, nice resumption of the breakout move on strong trade. Very nicely formed base using the 50 day EMA and 90 day SMA as support, showing plenty of institutions using the test to buy just as they are buying now. Ready to move in as it continues higher to a new all-time high.
Volume: 1.549M Avg Volume: 984.086K
BUY POINT: $27.31 Volume=1M Target=$32.95 Stop=$25.58
POSITION: QHY CE - Mar. $25c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/cphd.html
Play Date: 01/07/2008
FTI (FMC Technologies--$62.28; -1.00; optionable): Oil and gas service company
http://biz.yahoo.com/p/f/fti.html
EARNINGS: 2-14-08
STATUS: Cup w/handle. Big surge higher last Thursday on the announcement of 'the Angola job.' That move completed its 10 week base that formed using the 50 day EMA and the 90 day SMA as support, a popular combination for strong stocks left standing in this market. No doubt FTI is a strong stock with a big 2007 run, and this base has allowed it to consolidate and set up its next move. It is testing back the past two sessions on lower volume, forming the handle, the last shakeout of easy sellers, to the base. It tapped at the 10 day EMA (60) on the Monday low and then rebounded to cut its losses considerable. It may still come back to test the 10 day EMA more; if it does we will let it and catch it on a move off of that level. If it continues from here, however, then we will move in and let it carry us higher.
Volume: 1.793M Avg Volume: 1.566M
BUY POINT: $63.55 Volume=1.9M Target=$75.95 Stop=$60.38
POSITION: FTI DL - Apr. $60c (63 delta) or FTI DM - Apr. $65c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/fti.html
Play Date: 01/07/2008
GILD (Gilead Sciences--$47.71; +1.81; optionable): Biotechnology
http://biz.yahoo.com/p/g/gild.html
EARNINGS: Mid-January
STATUS: Ascending base. Volume is up as GILD heads toward the breakout from its 9 week base formed using the 50 day EMA (45.17) as support as it makes higher and higher lows below a constant high just below 48. Breakouts from these patterns can be explosive, and GILD has shown it can be an explosive stocks. It broke higher in October from a 6 month base, and it surged higher, but then got caught in the selling. It used that to form this base, however, and it looks more than ready to break to a new high. Very nice.
Volume: 9.014M Avg Volume: 7.201M
BUY POINT: $48.05 Volume=10M Target=$55.95 Stop=$45.69
POSITION: GDQ EW - May $74.50c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/gild.html
Play Date: 01/07/2008
HK (Petrohawk Energy--$17.88; +0.37; optionable): Independent oil and gas
http://biz.yahoo.com/p/h/hk.html
EARNINGS: First week of February
STATUS: Double bottom w/handle. Very nice set up in this 11 week base formed using the 200 day SMA as support for the two lows and putting HK in position to break higher and challenge its all-time high at 24.50. Excellent price/volume action of late as it sets up in the handle for the breakout, ready to follow that money flow surging higher. Just waiting for the strong break higher to show us the buy point.
Volume: 2.263M Avg Volume: 1.635M
BUY POINT: $18.48 Volume=2.5M Target=$22.32 Stop=$17.32
POSITION: HK CW - Mar. $17.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/hk.html
Play Date: 01/07/2008
IMA (Inverness Medical--$57.89; +0.37; optionable): OTC in vitro diagnostic products (pregnancy, fertility) as well as professional diagnostic testing
http://biz.yahoo.com/p/i/ima.html
EARNINGS: Late January
STATUS: Cup. IMA is forming a 9 week cup base, bottoming at the 90 day SMA (55.80) the past two weeks. Volume surged Friday and Monday as IMA moved off of this level, clearing the late December interim high. It is still down in the lower half of its base (November high at 65 marks the peak), but this is a solid stock with good institutional backing. Moreover, this is the kind of market that really benefits the medical stocks. And it can give us a great gain without having to plow a bunch of new ground. Very nice and looking for a strong break above the 50 day SMA (58.08) to give us the entry point.
Volume: 1.339M Avg Volume: 818.119K
BUY POINT: $58.24 Volume=1.2M Target=$68.95 Stop=$55.78
POSITION: IMA EL - May $60c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/ima.html
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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us stock market
stock recommendation
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