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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: After this harsh selling, looking for some plays to capture the relief bounce.
Play Date: 01/17/2008
CMED (China Medical Technologies--$47.32; -2.60; optionable): Chinese medical instruments
http://biz.yahoo.com/p/c/cmed.html
EARNINGS: Third week February
STATUS: Breakout test. CMED made us some money on its breakout, and we sold out this week, waiting on a test to give us another entry point. It fell to the late October peak (the start of the last base) on Thursday. Just waiting for it to hold the line near this level and rebound from here with a market recovery. A leader in the market and withstood the selling well. Ready to move in when it turns and bounces with the market.
Volume: 602.32K Avg Volume: 643.23K
BUY POINT: $48.22 Volume=700K Target=$57.88 Stop=$44.84
POSITION: QCY CI - Mar. $45c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/cmed.html
Play Date: 01/17/2008
DIA (Diamonds Trust (DJ30 EFT)--$121.77; -2.88; optionable)
http://biz.yahoo.com/p/d/dia.html
STATUS: This second leg down is approaching its climax, and when it bounces it is going to have a fairly sustained rebound similar to late November, early December. When we see the turn after some more selling we will move in. The buy point is flexible; if DIA sells more first we can move in a bit lower when it reverses.
Volume: 30.904M Avg Volume: 16.203M
BUY POINT: $122.12 Volume=18M Target=$127.95 Stop=$121.19
POSITION: DAW CQ - Mar. $121c (59 delta)
http://www.investmenthouse.com/ci/dia.html
Play Date: 01/17/2008
ELN (Elan--$24.26; -0.16; optionable): Drug delivery systems
http://biz.yahoo.com/p/e/eln.html
EARNINGS: Third week January
STATUS: Test breakout. ELN surged higher to start January, clearing the early December peak on the move. That took it to a new 3 year high. Nice easy test the past week, coming back to the 10 day EMA on the Thursday close. Showing excellent strength in the market, and we are ready to move in as it starts to rebound.
Volume: 3.059M Avg Volume: 2.859M
BUY POINT: $24.88 Volume=4.3M Target=$28.95 Stop=$23.68
POSITION: ELN DX - Apr. $22.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/eln.html
Play Date: 01/17/2008
FWLT (Foster Wheeler--$128.58; -2.46; optionable): Heavy construction, engineering
http://biz.yahoo.com/p/f/fwlt.html
EARNINGS: Early February
STATUS: Test 200 day SMA. FWLT sold off in a straight line and Wednesday it held some support in the 130 range. Broke it slightly Thursday, but breaks of support after sharp declines tend to lead to rebounds. Given the market is on the cusp of a rebound, FWLT is positioned perfectly for a bounce.
Volume: 3.494M Avg Volume: 1.852M
BUY POINT: $131.48 Volume=2.2M Target=$147.00 Stop=$127.55
POSITION: UFB EU - May $135c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/fwlt.html
Play Date: 01/17/2008
MOS (Mosaic Company--$81.00; -10.71; optionable): Agricultural chemicals
http://biz.yahoo.com/p/m/mos.html
EARNINGS: Early April
STATUS: Test 50 day EMA. One of the ag leaders in the rally, MOS surged higher last week on solid earnings. Then the market took it down this wee, down to the 50 day SMA on the Thursday close. It is one of the few stocks that is actually holding the 50 day MA, and when the worm turns on this sell off, MOS is going to pop.
Volume: 15.915M Avg Volume: 4.526M
BUY POINT: $82.89 Volume=6M Target=$99.00 Stop=$79.21
POSITION: MOS CP - Mar. $80c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/mos.html
Play Date: 01/17/2008
SPY (S&P Depository Receipts--$133.43; -3.55; optionable)
http://biz.yahoo.com/p/s/spy.html
STATUS: Similar to DIA, SPY is diving on its second down leg of the selloff. This second leg is now the same drop and duration of leg one, and another good scare and it is ready to reverse. If SPY sells substantially lower and then the market reverses, move the buy point down and move in.
Volume: 395.594M Avg Volume: 219.586M
BUY POINT: $134.91 Volume=250M Target=$141.94 Stop=$133.88
POSITION: SFB CD - Mar. $134c (55 delta)
http://www.investmenthouse.com/ci/spy.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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