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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 01/30/2008
GG (Goldcorp--$38.74; +1.02; optionable): Gold mines and mining
http://biz.yahoo.com/p/g/gg.html
EARNINGS: 2/21/08
STATUS: Test breakout. GG broke higher out of a nine week double bottom to start the year. It was not immune to the market selling, however, and fell back hard mid-month. It held at the middle of the pattern at 34 and rebounded. It spent the past four sessions moving laterally on lower volume, resting after the sharp rebound. The action this month has formed a short reverse head and shoulders pattern, an upside pattern. Wednesday GG started to break higher off the 10 day EMA on rising, above average volume. Looks ready to continue the breakout.
Volume: 8.751M Avg Volume: 7.762M
BUY POINT: $39.31 Volume=10M Target=$45.45 Stop=$36.65
POSITION: GG DU - Apr. $37.50c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/gg.html
Play Date: 01/30/2008
OTEX (Open Text--$30.25; +0.61; optionable): Enterprise content management services
http://biz.yahoo.com/p/o/otex.html
EARNINGS: 2/7/08
STATUS: Test 50 day EMA. While most of the market sells, OTEX is already working on its base, thus far a 12 week jobber. It made a short double bottom this month, tapping at the 200 day SMA intraday last week and then bouncing back to the 50 day EMA (30.22). It has moved laterally at that level, resting for the next break higher. Money flow is running higher ahead of price. This is one of the stocks that is bucking the market trend and getting money. Want to see strong volume as it makes the break higher.
Volume: 446.421K Avg Volume: 645.049K
BUY POINT: $31.12 Volume=825K Target=$36.95 Stop=$28.94
POSITION: KQJ EH - May $30c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/otex.html
Downside:
Play Date: 01/30/2008
CNH (CNH Global--$48.52; -1.34; optionable): Farm and construction machinery
http://biz.yahoo.com/p/c/cnh.html
EARNINGS: Announced 1/23/08
STATUS: Head and shoulders. CHN crashed lower on earnings, breaking down from a 7 week head and shoulders top. It crashed through the 200 day SMA (54.16) last week and made a low volume bounce back, topping out at the November low Tuesday and Wednesday, rolling over on rising, above average volume Wednesday. Looks ready to follow tanking money flow again. Nice. A move to the target lands a 43%ish gain.
Volume: 1.096M Avg Volume: 670.775K
BUY POINT: $47.94 Volume=850K Target=$43.21 Stop=$50.50
POSITION: CNH OK - Mar. $50p (-48 delta)
http://www.investmenthouse.com/ci/cnh.html
New buy points on current positions:
Play Date: 01/30/2008
QID (QQQ Proshares UltraShort ETF--$50.21; +0.12; optionable)
http://biz.yahoo.com/p/q/qid.html
STATUS: Test breakout. After surging two weeks back on the market selling QID has come back as the market rebounded, testing the move and filling the gap. It sold off Wednesday but then reversed as the market reversed. Strong volume. It is ready to continue the move as the NASDAQ sells off; AMZN's earnings will jumpstart the next move.
Volume: 42.383M Avg Volume: 32.833M
BUY POINT: $50.32 Volume=39M Target=$57.32 Stop=$48.48
POSITION: QID CY - Mar. $51c (56 delta, 52 OI) &/or Stock
http://www.investmenthouse.com/ci/qid.html
Play Date: 01/30/2008
SDS (UltraShort S&P500 ETF--$63.62; +1.42; optionable)
http://biz.yahoo.com/p/s/sds.html
STATUS: Test 18 day EMA. Very similar to QID, SDS has tested its breakout on the harsh market selling, tested as the market rebounded, and then sold off hard Wednesday just to reverse on strong volume. Ready to surge higher. Will gap higher and we will be inclined to chase a few positions early and then again on the first test of the break higher.
Volume: 35.525M Avg Volume: 21.43M
BUY POINT: $63.75 Volume=25M Target=$72.45 Stop=$62.94
POSITION: SDS CK - Mar. $63 delta (55 delta) &/or Stock
http://www.investmenthouse.com/ci/sds.html
Continuing Downside:
Play Date: 01/28/2008
DXD (ProShares DJ30 UltraShort ETF--$56.99; +0.79; optionable)
http://biz.yahoo.com/p/d/dxd.html
STATUS: Test 18 day EMA. And another very similar to QID, testing the sharp break higher, testing, and testing further Wednesday on the low and then rebounding on strong volume. Looking for it to move over the 10 day EMA (57.16) to give us the entry point.
Volume: 6.761M Avg Volume: 4.041M
BUY POINT: $57.55 Volume=5.9M Target=$65.00 Stop=$55.94
POSITION: DXD DC - Apr. $55c (62 delta, 141 OI) &/or Stock
http://www.investmenthouse.com/ci/dxd.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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