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us stock market, trade stock
Begin part 3 of 3
THE PLAYS:
Play Date: 01/08/2008
CHTT (Chattem--$74.04; +0.03; optionable): Consumer personal health, hygiene products
http://biz.yahoo.com/p/c/chtt.html
STATUS: Test breakout. CHTT surged in late December, moving out of an 11 week base. It didn't make a lot more headway on that move, however, coming back in the early year selling to tap the 50 day EMA on the Monday intraday low. It rebounded that session and gapped higher Tuesday as did many consumer stocks. It could not hold the move, however, coming back to close flat at the 18 day EMA. Still like this stock as a recession stock. It performed very well in the 2001 to 2002 market selloff, moving up 8-fold. Looking for it to hold here and continue higher to give us the buy point.
Volume: 449.351K Avg Volume: 271.912K
BUY POINT: $75.68 Volume=408K Target=$86.95 Stop=$73.65
POSITION: HQT CO - Mar. $75c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/chtt.html
Play Date: 01/08/2008
STE (Steris--$29.47; -0.38; optionable): Medical appliances
http://biz.yahoo.com/p/s/ste.html
EARNINGS: Late January
STATUS: Double bottom w/handle. Volume has rallied the past three sessions as STE heads toward the breakout from its 7 month base. It has tried the breakout the past two sessions but could not hold the move. Still a solid pattern and a very good sector for a defensive market. Has quietly set up the breakout, using the market selling as a basing tool. Very nice.
Volume: 663.5K Avg Volume: 427.505K
BUY POINT: $30.45 Volume=700K Target=$35.00 Stop=$28.91
POSITION: STE FF - June $30c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/ste.html
Downside: Despite the big drop, still some ready to fall.
Play Date: 01/08/2008
AG (Agco Corp.--$62.90; -4.23; optionable): Farm and construction machinery
http://biz.yahoo.com/p/a/ag.html
EARNINGS: Late January
STATUS: Double top. Peaked on low volume in late December, early January and then started to fade. Tuesday it sold off to close below the 50 day EMA (63.44). Money flow is diving lower ahead of price this time, and after the failure to make the new high it looks ready to head lower. On a continued move lower on solid trade we will look at entering for a run to the target. That move lands a 41%ish gain.
Volume: 1.838M Avg Volume: 1.864M
BUY POINT: $62.65 Volume=2M Target=$58.55 Stop=$64.05
POSITION: AG NM - Feb. $65p (-60 delta)
http://www.investmenthouse.com/ci/ag.html
Play Date: 01/08/2008
GME (Gamestop--$56.10; -0.42; optionable): Electronic game stores
http://biz.yahoo.com/p/g/gme.html
EARNINGS: Third week February
STATUS: Put. GME peaked out on low volume to end December, started to fade, then gapped lower Friday. It sold to the 90 day SMA (56.23) on the Monday and Tuesday lows, Tuesday rallying back up to the 10 and 18 day EMA before falling back to close on the low. The lack of volume at the last new high is not a good sign. Looking to move in for a downside play as GME falls through the recent lows. It is setting up something of a head and shoulders with the neckline at 50. That means it is likely to move down to that level near term. Our initial target is less ambitious but lands a 43%ish gain. If it is selling hard at that point we will, of course, let it sell.
Volume: 3.222M Avg Volume: 3.043M
BUY POINT: $55.74 Volume=3.4M Target=$53.22 Stop=$57.71
POSITION: GME NK - Feb. $55p (-42 delta)
http://www.investmenthouse.com/ci/gme.html
Play Date: 01/08/2008
SBUX (Starbucks--$19.86; +1.48; optionable): Coffee shops
http://biz.yahoo.com/p/s/sbux.html
EARNINGS: 1-30-08
STATUS: Put. After a nasty trend lower the past two months, tanking below the 10 day EMA (19.59), SBUX gapped higher Tuesday on news its old CEO was coming back to run the show after 8 years, trying to turn the tide. SBUX moved up through the 18 day EMA (20.23) intraday, but it was dragged back down. We will see if this news has any longevity, but we think that even with the good news that may eventually make a difference in the company's fortunes, nearer term we anticipate more selling after this gap higher (gap will need to be filled anyway). A move to our initial target, a move that takes it back to the prior lows lands a 52%ish gain.
Volume: 63.149M Avg Volume: 15.003M
BUY POINT: $19.55 Volume=21M Target=$18.00 Stop=$20.33
POSITION: SQX ND - Feb. $20p (-47 delta)
http://www.investmenthouse.com/ci/sbux.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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us stock market
trade stock
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