us stock market, trend trading stock

Begin part 3 of 3

THE PLAYS:

Upside:

Play Date: 01/28/2008
HWAY (Healthways--$66.59; +2.83; optionable): Population screening for health risks, etc.
http://biz.yahoo.com/p/h/hway.html
EARNINGS: Announced 12-19-08
STATUS: Test breakout. Big surge early this year out of a 13 week trading range, taking HWAY to a new high. Nice orderly test the past two weeks as it came back to test near support at the 18 day EMA (65.15). Very steady fade, using the market selling to test he breakout, then bouncing Monday on rising, above average trade. If it shows continued solid volume on the bounce it is a buy.
Volume: 646.78K Avg Volume: 488.576K
BUY POINT: $67.21 Volume=700K Target=$77.31 Stop=$63.25
POSITION: QMH EM - May $65c (61 delta, 79 OI) &/or Stock
http://www.investmenthouse.com/ci/hway.html

Play Date: 01/28/2008
NUVA (Nuvasive--$41.39; +0.67; optionable): Products for surgical treatment of spine disorders
http://biz.yahoo.com/p/n/nuva.html
EARNINGS: 2-19-08
STATUS: Flat base. Nice action in a 12 week trading range from 38 to 44, making a higher low the past week at the 50 day EMA (40.02). Very nice base setting up as the market dove lower. Solid upside trade the past two sessions, telling us to get ready for a break higher. Just looking for a solid upside move on continued solid volume.
Volume: 583.799K Avg Volume: 398.462K
BUY POINT: $42.55 Volume=395K Target=$49.32 Stop=$39.65
POSITION: QNU CH - Mar. $40c (56 delta) or QNU FI - June $45c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/nuva.html

Play Date: 01/28/2008
PFCB (PF Changs--$27.86; +0.41; optionable): Restaurants (Pei Wei, PF Chang's)
http://biz.yahoo.com/p/p/pfcb.html
EARNINGS: 2-13-08
STATUS: Trend reversal. After a 12 month downtrend, PFCB jumped higher last week on strong trade, clearing the 50 day EMA and the 90 day SMA (26.82) on the surge. After that strong move it has tested, the past three sessions, tapping at the 90 day on the Monday low and rebounding to close positive. No volume on the session; need to see that come in as it makes the bounce back up off of the test, showing us the buyers are back in. Nice strong trend reversal that we can at least make a trade up toward the 200 day SMA (32) on to the down trendline at 34.50.
Volume: 820.551K Avg Volume: 1.011M
BUY POINT: $28.48 Volume=1.5M Target=$32.75 Stop=$26.77
POSITION: HUO DE - Apr. $25c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/pfcb.html

Downside:

Play Date: 01/28/2008
DXD (ProShares DJ30 UltraShort ETF--$57.09; -1.55; optionable)
http://biz.yahoo.com/p/d/dxd.html
STATUS: Test 18 day EMA. As DJ30 sold off in January DXD surged higher (moves inversely to the actual index moves). It peaked as DJ30 reversed last week. It has come back to the 18 day EMA (56.04) and bounced. Monday DXD sold back as DJ30 rallied some more. Want to be in position to move in if the Dow stalls here at near resistance. If it continues higher, we will move the buy point down accordingly and be ready to enter when the Dow's move stalls.
Volume: 5.388M Avg Volume: 3.96M
BUY POINT: $58.72 Volume=5.9M Target=$65.00 Stop=$55.96
POSITION: DXD DC - Apr. $55c (62 delta, 141 OI) &/or Stock
http://www.investmenthouse.com/ci/dxd.html

Play Date: 01/28/2008
XLF (Financial Sector ETF--$28.15; +0.97; optionable): Financials
http://biz.yahoo.com/p/x/xlf.html
STATUS: Put. After moving higher 4 out of 5 sessions and tapping the 50 day EMA (28.91) on the Monday high before backing off, we are preparing to move into the downside if the XLF financial ETF peaks out and heads back down. Low volume as it testes the 50 day EMA as volume declined the past three sessions as it tested. It stalled at the 50 day on its last bounce in late November through early December, and we are looking for a stall out here to take it lower and give us a nice entry point. A move to the target lands a 60%ish gain.
Volume: 92.04M Avg Volume: 106.209M
BUY POINT: $27.22 Volume=110M Target=$25.00 Stop=$28.54
POSITION: XLF OC - Mar. $29p (-53 delta)
http://www.investmenthouse.com/ci/xlf.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.

us stock market
trend trading stock