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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
THE PLAYS: A few more upside in great position.
Upside:
Play Date: 01/23/2008
CSX (CSX Corp.--$45.51; +2.12; optionable): Rail transportation
http://biz.yahoo.com/p/c/csx.html
EARNINGS: 2-1-08
STATUS: Cup. Strong volume the past two sessions as CVX breaks higher in its 6 month base, making a higher high as it clears the December peak. CVX has put in its time in this base, and despite the talk of recession, it has not caved in, instead building this nicely formed base. Looking to move in as it continues higher with some positions, but not a full position. It has rallied 4.50 points off the bottom of its base and it will take a breather before too long, but on a further move we can establish a position to ride the continuing momentum, and then add to it on the test.
Volume: 12.805M Avg Volume: 6.066M
BUY POINT: $46.05 Volume=6.5M Target=$51.95 Stop=$43.88
POSITION: CSX EI - May $45c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/csx.html
Play Date: 01/23/2008
OMCL (Omnicell--$29.05; +0.80; optionable): Medication control, patient safety for acute care facilities
http://biz.yahoo.com/p/o/omcl.html
EARNINGS: Unconfirmed. Will announce this week or next.
STATUS: Double bottom w/handle. Excellent action in a weak market as OMCL breaks higher Wednesday on strong volume out of its 15 week base. Looking at OMCL you would never know there was a major market selloff the past several weeks; it formed its base above the 200 day SMA, showing just the kind of accumulation you want to see. Nice swell in volume ahead of the breakout, and ready to take some positions on a continued upside move and then add to the position as it makes its test.
Volume: 1.064M Avg Volume: 495.438K
BUY POINT: $29.55 Volume=550K Target=$33.95 Stop=$27.54
POSITION: UMK EF - May $30c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/omcl.html
Play Date: 01/23/2008
PPDI (Pharmaceutical Product Dev.--$44.22; -2.16; optionable): Drug discovery and development services, etc.
http://biz.yahoo.com/p/p/ppdi.html
EARNINGS: 2-6-08
STATUS: Test breakout. PPDI surged higher to start January, breaking out of a 10 week base that consolidated the October breakout from a much larger 16 month cup base. It broke higher this year on news it upped its guidance. Strong move in a weak market. After that breakout it used the selling to test; as the market rebounded this week it has come back, tapping at the 50 day EMA (42.83) on the Wednesday low before rebounding to cut its losses. Nice low volume test of the breakout move except for Wednesday, and that was a reversal session off of key support. Looking for a continued rebound to give us the buy point. Like to buy off the breakout test, particularly in this market.
Volume: 2.034M Avg Volume: 918.868K
BUY POINT: $45.22 Volume=1.4M Target=$51.95 Stop=$43.68
POSITION: PJQ DI - Apr. $45c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/ppdi.html
Play Date: 01/23/2008
VIP (Vimple Communication--$32.33; +0.07; optionable): Russian wireless communications
http://biz.yahoo.com/p/v/vip.html
EARNINGS: Last week February
STATUS: Test 200 day SMA. VIP was a strong market leader through the end of 2007, making a last breakout and run up through the end of the year. It has sold back this month as the leaders were taken out, but it held the past two sessions above the October and November consolidation lows, bouncing off that support both sessions. Primed to make a move higher; just want to see some strong volume as it kicks up off of this support.
Volume: 6.756M Avg Volume: 3.853M
BUY POINT: $32.68 Volume=5.5M Target=$39.45 Stop=$29.91
POSITION: VIQ DF - Apr. $30c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/vip.html
CONTINUING PLAYS:
Upside:
Play Date: 01/17/2008
CMED (China Medical Technologies--$45.00; -1.20; optionable): Chinese medical instruments
http://biz.yahoo.com/p/c/cmed.html
EARNINGS: Third week February
STATUS: Breakout test. Nice hold at key support at the 50 day SMA (44.04) as CMED continues its preparation for the next break upside. It was a winner when the market was selling, so it has taken a breather as the other stocks rebound. Its time looks to be close, however. To recap: 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: 602.982K Avg Volume: 649.889K
BUY POINT: $47.88 Volume=700K Target=$57.88 Stop=$44.87
POSITION: QCY CI - Mar. $45c (64 delta) &/or Stock
http://www.investmenthouse.com/ct/cmed.html
Play Date: 01/22/2008
HLEX (Healthextras--$29.73; -0.21; optionable): Pharmacy benefit management services
http://biz.yahoo.com/p/h/hlex.html
EARNINGS: 2-25-08
STATUS: Test breakout. Held steady at the 10 day EMA (29.40) Wednesday as it continues its test of last week's breakout. Nice upside volume after gapping lower. Just being patient and waiting for the next break higher as it continues its breakout move. To recap: HLEX surged higher last week on strong volume, clearing a 9 month base that is part of a larger 21 month pattern. It is making a quick test as the market sells, coming back Thursday through Tuesday, tapping at the 200 day SMA (28.44) on the Tuesday low and rebounding to close flat. Looks very good to continue the break higher and make a run toward a new all-time high.
Volume: 725.96K Avg Volume: 293.125K
BUY POINT: $30.52 Volume=440K Target=$36.65 Stop=$28.38
POSITION: HUE FF - June $30c (53 delta) or HUE CF - Mar. $30c (55 delta) &/or Stock
http://www.investmenthouse.com/ct/hlex.html
Play Date: 01/17/2008
MOS (Mosaic Company--$81.00; +0.71; optionable): Agricultural chemicals
http://biz.yahoo.com/p/m/mos.html
EARNINGS: Early April
STATUS: Test 50 day EMA. Another reach down to the 90 day SMA intraday and a rebound back to close at the 50 day SMA. Nice set up for the bounce, just waiting for a strong move. To recap: 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: 9.81M Avg Volume: 4.77M
BUY POINT: $82.38 Volume=6M Target=$99.00 Stop=$79.21
POSITION: MOS CP - Mar. $80c (51 delta) &/or Stock
http://www.investmenthouse.com/ct/mos.html
Play Date: 01/19/2008
RIG (Transocean--$125.30; +1.14; optionable): Offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: 2-20-08
STATUS: Test 90 day SMA. Energy was one of the last victims to fall last week, but despite the drubbing, RIG found solid support at the 90 day SMA (124.90) and bounced Friday on rising, above average volume. Indeed, the selling volume on RIG was not the massive distribution seen with other stocks. That sets it up for a rebound to try the 140 level where it peaked in late November and early December, the potential left shoulder of a possible head and shoulders top. That give us plenty of room to make a nice upside play in a more sustained market rebound even if the pattern does form, and we know that the pattern often looks as if it is going to set up but does not complete.
Volume: 13.733M Avg Volume: 8.708M
BUY POINT: $125.25 Volume=10M Target=$138.95 Stop=$122.38
POSITION: RIG EF - May $130c (48 delta) &/or Stock
http://www.investmenthouse.com/ct/rig.html
Play Date: 01/22/2008
RIMM (Research in Motion--$88.00; -2.08; optionable): Blackberries
http://biz.yahoo.com/p/r/rimm.html
EARNINGS: Announced 12-20-08
STATUS: Test 200 day SMA. Still testing the 200 day SMA and still set to make the rebound, having handled AAPL's earnings well. Strong volume Tuesday and Wednesday, Wednesday as it lost a bit of ground but was bouncing off the 200 day to close near the session high. Looks ready and ready to move in as it continues higher through the buy point. To recap: RIMM gapped lower at the Tuesday open but held support at 80 and the 200 day SMA (82.79), reversing to close positive on rising, above average volume. Nice test of support and after this selloff from 120, in good position to bounce.
Volume: 41.003M Avg Volume: 30.199M
BUY POINT: $90.45 Volume=35M Target=$103.95 Stop=$85.05
POSITION: RFY CR - Mar. $90c (57 delta) or FRY FR - June $90c (61 delta) &/or Stock
http://www.investmenthouse.com/ct/rimm.html
Play Date: 01/19/2008
VSEA (Varian Semiconductor--$33.00; +0.10; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
EARNINGS: 1-24-08
STATUS: Still working laterally, trying to get the strength to make the break higher and clear the October/December trendline it tested on the Wednesday high (34.13). Volume is swelling as it bumps this level. Just looking for a strong break higher. To recap: Quietly last week, chips started to show strength as the rest of the market sharply sold off. VSEA, a former chip leader before peaking to start September 2007, showed some solid action with two strong upside sessions on jumping volume. That indicates it was more than just a bounce back up to resistance in a continuing downtrend. Indeed, we are looking for it to continue higher off this strong volume turn, move through the 50 day EMA at 37.50, and test a band of resistance at 40. Not a huge move but a nice gain in a rebounding market.
Volume: 2.054M Avg Volume: 1.514M
BUY POINT: $34.55 Volume=2M Target=$39.45 Stop=$33.08
POSITION: UES CG - Mar. $35c (48 delta) &/or Stock
http://www.investmenthouse.com/ct/vsea.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
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