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us stock market, trade stock
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
CONTINUING PLAYS:
Play Date: 01/05/2008
DO (Diamond Offshore--$136.12; +0.83; optionable): Offshore drilling
http://biz.yahoo.com/p/d/do.html
EARNINGS: 2-7-08
STATUS: Breakout test. Tested lower but held the 18 day EMA quite nicely, recovering for a modest gain Monday on continued above average volume. Still in excellent position and still a buy as it rebound higher on continued solid trade. To recap: DO surged in December, clearing an 18 week base on base pattern. It surged to a new high on strong volume and then spent last week's selling coming back to test near support at the 18 day EMA (134). This is its second test of this near support since its breakout, and that leaves plenty of upside still ahead as energy takes the point as most of the market sells. This is one of those stocks that used the selling to set up for its next upside move and you always like to see that.
Volume: 2.641M Avg Volume: 2.375M
BUY POINT: $136.32 Volume=3M Target=$156.95 Stop=$132.57
POSITION: DO CG - Mar. $135c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/do.html
Play Date: 01/05/2008
EDU (New Oriental Education & Tech--$85.85; +4.03; optionable): Chinese training and education services
http://biz.yahoo.com/p/e/edu.html
EARNINGS: 1-15-08
STATUS: Ascending base. More solid volume as EDU broke higher over the October/December down trendline, clearing the late December peak as well. Nice action and still a buy as it continues higher. To recap: EDU is volatile, but it is forming up a great pattern and thus we are taking a look at it once more. Friday it was up nicely on very strong volume as it bounced off the 50 day EMA (77), making a higher low at that key support in its 10 week base. Money flow is strong and the price/volume action is good. Looking for a continued break higher to move in. Another stock showing excellent relative strength in a weak market.
Volume: 770.218K Avg Volume: 610.731K
BUY POINT: New: On a continued move higher from the close (orig. $83.32) Volume=750K Target=$99.95 Stop=$78.77
POSITION: EDU DP - Apr. $80c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/edu.html
Play Date: 01/03/2008
OII (Oceaneering Intl.--$73.82; +0.45; optionable): Oil and gas offshore drilling, services
http://biz.yahoo.com/p/o/oii.html
EARNINGS: 2-20-08
STATUS: Double bottom. Forming something of a handle the past two sessions, tapping at the 90 day SMA on the lows the past three sessions, holding over the early December peak. Very nice action as it sets up for the break higher. Very solid. To recap: Volume is up the past two sessions, moving above average as OII surges higher, clearing the early December peak that is the 'hump' in its 11 week base. Strong surge, and it is putting OII on course for a run back up to the old high at 86 for starters. Looking to move in on a continued upside move here and then again on the test that holds and starts to rebound again.
Volume: 755.67K Avg Volume: 779.536K
BUY POINT: $75.55 Volume=785K Target=$90.95 Stop=$71.35
POSITION: OII DO - Aprl $75c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/oii.html
Play Date: 01/05/2008
SLT (Sterlite Industries--$26.83; +0.51; optionable): Copper production in India
http://biz.yahoo.com/p/s/slt.html
EARNINGS: Third week of February
STATUS: Ascending base. Volume was up, moving toward average as SLT broke higher. Looking for a bit more trade as it makes the move. To recap: Taking a new look at SLT as it continues to build for the breakout. A new issue in June 2007 and now working on its second base. It bounced off the 50 day EMA in mid-December, and then spent the past week working laterally, holding the 18 day EMA (25.56) in a narrow range, resting for the next move. Looks super and on Friday volume was moving higher as SLT gapped up. Looks ready to clear resistance and start the next run higher.
Volume: 1.962M Avg Volume: 2.284M
BUY POINT: $26.68 Volume=2.4M Target=$32.95 Stop=$25.45
POSITION: SLT CE - Mar. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/slt.html
Good Investing!
Jon L. Johnson and your Technical Traders Report 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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