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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Upside: Looking defensive and at stocks that held up nicely in the selling
Play Date: 01/15/2008
AGP (Amerigroup--$39.42; -0.48; optionable): Health care plans
http://biz.yahoo.com/p/a/agp.html
EARNINGS: 2-13-08
STATUS: Breakout test. Solid breakout move last week as AGP cleared a 10 week ascending base that is the handle to a larger 12 month cup with handle base. Nice break higher and then a test this week on lower volume, holding the gains and holding well above the 10 day EMA (38.52) as it tests, moving more laterally than back down. Nice pattern, nice breakout, and not giving up the gains after the breakout. Always like it when they are stingy in giving back the gains. Looking to move in as it breaks higher once more and resumes the breakout move.
Volume: 440.9K Avg Volume: 832.275K
BUY POINT: $40.25 Volume=1M Target=$48.48 Stop=$38.45
POSITION: AGP CH - Mar. $40c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/agp.html
Play Date: 01/15/2008
GENZ (Genzyme--$78.50; -0.18; optionable): Biotechnology
http://biz.yahoo.com/p/g/genz.html
EARNINGS: 2-13-08
STATUS: Breakout test. Broke higher last week on strong volume on news of an acquisition. Nice 10 week ascending base formed using the 50 day EMA (74.33) to make higher lows. Strong volume on the breakout, lower volume on the test as the 10 day EMA (77.57) rose to meet it. Nice jump in volume Tuesday as GENZ moved up off the 10 day. Looking to move in as it continues its strong break higher.
Volume: 3.197M Avg Volume: 2.677M
BUY POINT: $79.48 Volume=3M Target=$91.45 Stop=$76.55
POSITION: GAA DP - Apr. $80c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/genz.html
Play Date: 01/15/2008
PDX (Pediatrix Medical--$70.79; +1.89; optionable): Specialized health services
http://biz.yahoo.com/p/p/pdx.html
EARNINGS: First week February
STATUS: Breakout. PDX used the market selling to garner new money, breaking out from an 8 week base. Well, it really broke out in December but then tested that move up to Tuesday when it started higher once more. Strong volume as it continues higher, and ready to move in as it continues the break higher then adding to positions as it makes its first successful test.
Volume: 481.9K Avg Volume: 256.328K
BUY POINT: $70.96 Volume=265K Target=$81.55 Stop=$67.91
POSITION: PDX EN - May $70c (58 delta, 82 OI) &/or Stock
http://www.investmenthouse.com/ci/pdx.html
Downside: Look ready to sell further even with the market decline thus far.
Play Date: 01/15/2008
GRA (W.R. Grace & Co.--$20.15; -1.81; optionable): Chemicals
http://biz.yahoo.com/p/g/gra.html
EARNINGS: 1-30-08
STATUS: Put. GRA peaked in mid-October then started testing. It tested, and tested, and tested some more. It fell through the 200 day SMA up at 25.75, tried to recover it, then rolled over to start 2008. It is coming off a test of near resistance at the 10 day EMA (22.21), dropping hard Tuesday on a volume spike. Looking to move in as GRA continues its move lower, but want to see how it responds to Wednesdays weaker open. A move down to the target lands a 47%ish gain.
Volume: 1.886M Avg Volume: 902.078K
BUY POINT: $19.95 Volume=1M Target=$18.03 Stop=$20.55
POSITION: GRA ND - Feb. $20p (-47 delta)
http://www.investmenthouse.com/ci/gra.html
Play Date: 01/15/2008
PCU (Southern Copper--$94.58; -4.69; optionable): Copper
http://biz.yahoo.com/p/p/pcu.html
EARNINGS: Third week January
STATUS: Head and shoulders. PCU has formed a large 6 month top and is just now falling from its right shoulder after it breached the 200 day SMA (103.53) last week. It tried to hold, but as the 10 day EMA (99.74) sat down on it, it started to break down from its week long lateral consolidation attempt. Looking to move in as it continues the break lower. Will have to see where it opens on Wednesday given the negative earnings news in the market. On a bounce from a lower open we can use that to enter.
Volume: 2.025M Avg Volume: 2.117M
BUY POINT: $94.08 Volume=2.5M Target=$87.75 Stop=$96.11
POSITION: PCU NS - Feb. 95p (-51 delta)
http://www.investmenthouse.com/ci/pcu.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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stock recommendation
stock market recommendation
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