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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS: Some leaders in the last move have set up again.
New Post-Split Plays:
Play Date: 02/11/2008
BAX (Baxter Intl.--$60.88; +0.23; optionable): Medical instruments
http://biz.yahoo.com/p/b/bax.html
EARNINGS: Announced 1-24-08
STATUS: Test 50 day EMA. Gapped higher in early January, clearing an 8 week ascending base and rallying to 65. It fell in the January selling, but ht is held at the 50 day EMA (60.34), working laterally at that level the past week. Excellent position to make the next break higher. Lower, below average volume the past week, and looking for BAX to make the next break higher on stronger trade to show us the buyers are back in.
Volume: 2.872M Avg Volume: 3.774M
BUY POINT: $61.44 Volume=4M Target=$69.95 Stop=$59.97
POSITION: BAX EL - May $60c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/bax.html
Play Date: 02/11/2008
RIO (Companhia Vale Do Rio Doce--$31.91; +1.56; optionable): Steel and iron
http://biz.yahoo.com/p/r/rio.html
STATUS: Trend reversal. RIO was a leader in 2007 then topped in late October. It has faded the past three months, coming back to the 200 day SMA (28.14) and a bit lower on the test in January. It has bounced from that level, rallying to the down trendline to start the month, testing back to the 10 and 18 day EMA the past week, and then breaking higher over that resistance Monday. Volume was up as RIO rallied to the 50 day EMA on the close. Looking for more as it continues higher.
Volume: 22.656M Avg Volume: 24.277M
BUY POINT: $32.32 Volume=28M Target=$37.77 Stop=$30.21
POSITION: RIO FZ - June $32.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/rio.html
New Leader Plays:
Play Date: 02/11/2008
DRYS (Dryships--$77.78; +4.50; optionable): Bulk shipping
http://biz.yahoo.com/p/d/drys.html
STATUS: Reverse head and shoulders. Strong runner in 2007 through October, and after that surge it needed to test. It did, tumbling about 50% on the initial run. Over the past 7 weeks it has set up the current base as part of the larger 4 month cup that is forming. This pattern often forms at the bottom of a cup. Started to break higher Monday, clearing the early January peak. Needs some more volume as it makes the break higher.
Volume: 4.078M Avg Volume: 4.388M
BUY POINT: $78.05 Volume=6M Target=$93.50 Stop=$72.11
POSITION: DQR FO - June $75c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/drys.html
Play Date: 02/11/2008
SPN (Superior Energy--$42.10; +2.20; optionable): Oil and gas equipment
http://biz.yahoo.com/p/s/spn.html
EARNINGS: 2-26-08
STATUS: Double bottom. Surging Monday on above average volume after three weeks of below average trade. SPN gapped higher in early January, clearing a seven month base on strong, strong volume. In the January selling it came back to test and fill most of the gap, holding at the 200 day SMA (37.89). It formed a double bottom at that level, tapping down Thursday at the 200 day and then starting the rebound. Excellent volume as it surges higher, and looking to move in as it continues the break higher.
Volume: 1.439M Avg Volume: 1.122M
BUY POINT: $42.55 Volume=1.2M Target=$48.95 Stop=$41.11
POSITION: SPN FH - June $40c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/spn.html
Good Investing!
Jon L. Johnson and the Stock Split Report Staff.
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 of 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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trade stock
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