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
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

Play Date: 01/07/2008
VIVO (Meridian Biosciences--$31.78; +2.07; optionable): Diagnostic subtances
http://biz.yahoo.com/p/v/vivo.html
EARNINGS: Mid-February
STATUS: Ascending base. Excellent volume as VIVO finally breaks higher from its 12 week base. We had watched VIVO set up in December, but it faded, dropping to the 90 day SMA (30.15); it was not finished forming its base. It continued on into January and then jumped higher Monday on surging volume as this is the kind of market that is chasing money into the more defensive areas such as healthcare. Excellent break higher and looking for a move past the December closing high to give us the entry point.
Volume: 910.074K Avg Volume: 378.244K
BUY POINT: $32.36 Volume=567K Target=$38.95 Stop=$30.09
POSITION: ZUG DF - Apr. $30c (65 delta) &/or Stock
http://www.investmenthouse.com/cs/vivo.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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