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stock recommendation, stock option
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 02/28/2008
JEC (Jacobs Engineering--$83.70; +0.66; optionable): Engineering services
http://biz.yahoo.com/p/j/jec.html
EARNINGS: Announced 1-22-08
STATUS: Cup w/handle. After surging to just over 100 to start January, JEC plunged down to the 200 day SMA to start the current 7 week base that is consolidating the 2007 run that more than doubled the price. It needed this rest, and it is setting up well to make a new run. It moved up through the 50 day EMA (81.26) Monday and has moved laterally since, tapping the 50 day EMA each session on the intraday low and then rebounding. This action is building a nice handle and shaking out the weak holders, setting up a new breakout. The bigger pattern can be viewed as a head and shoulders, but we like the volume JEC is showing on the upside, and if it gives a strong burst of volume on the breakout move it will break up that pattern that often does not come to fruition.
Volume: 2.448M Avg Volume: 1.891M
BUY POINT: $85.08 Volume=2.8M Target=$99.90 Stop=$81.22
POSITION: JEQ GQ - July $85c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/jec.html
Play Date: 02/28/2008
MEA (Metalico, Inc.--$12.20; -0.20; no options): Steel and iron
http://biz.yahoo.com/p/m/mea.html
EARNINGS: Late April
STATUS: Cup w/handle. Working on a two week handle to the 18 week base formed after MEA rallied to a new high in October. It rallied back up to test that level mid-month, then faded to the 10 and 18 day EMA where it found support. Now we are looking for it to make the break higher off this level, and the low volume hammer doji shown Thursday in the candlestick chart is a good indication it is getting close to the breakout move.
Volume: 113.467K Avg Volume: 213.898K
BUY POINT: $13.11 Volume=321K Target=$15.95 Stop=$12.19
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/mea.html
Play Date: 02/28/2008
PPDI (Pharmaceutical Product Dev.--$46.88; +0.45; optionable): Medical labs, research
http://biz.yahoo.com/p/p/ppdi.html
EARNINGS: Announced 2-6-08
STATUS: Cup w/handle. A sweet little 7 week base has formed using the 50 day EMA as support, consolidating the January run to a new all-time high. It has worked laterally the past week, holding a tight range as the 10 day EMA (45.80) rose to meet it. Thursday it gapped lower to that level then reversed to close positive. Very solid pattern that is ready to show us the breakout move.
Volume: 924.788K Avg Volume: 991.749K
BUY POINT: $47.22 Volume=1.5M Target=$56.75 Stop=$45.63
POSITION: PJQ GW - July $47.50c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/ppdi.html
Downside:
Play Date: 02/28/2008
ESRX (Express Scripts--$63.05; -1.86; optionable): Mail order prescriptions
http://biz.yahoo.com/p/e/esrx.html
EARNINGS: Announced 2-21-08
STATUS: Put. Looking to play ESRX to the downside again after it has tested the 50 day EMA (66.11) and has failed, starting to fall in earnest Thursday. It gapped lower in mid-January and then spent the time since trying to move back up through that level. It has started to roll over on rising volume, ready to follow the declining money flow lower. A move to the target lands a 41%ish gain.
Volume: 3.949M Avg Volume: 3.18M
BUY POINT: $62.94 Volume=3.6M Target=$59.65 Stop=$64.55
POSITION: XTQ PM - Apr. $65p (-55 delta)
http://www.investmenthouse.com/ci/esrx.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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stock recommendation
stock option
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