|
|
us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: As the market is selling hard and closing in on the January low it is time to look for what is holding up for the recovery while we let our downside run.
Play Date: 03/07/2008
GILD (Gilead Sciences--$47.81; -1.15; optionable): Biotechnology
http://biz.yahoo.com/p/g/gild.html
EARNINGS: Announced 1-23-08
STATUS: Test breakout. GILD broke higher from a 7 week double bottom to start March, moving higher to end February and start this month on strong volume. It peaked out at 50 on Wednesday and faded, falling again Thursday but on much lower, below average volume. Nice breakout and we are going to let it make the test down near the 10 day EMA (47) and pick it up as it bounces off that level. A picture of strength in a weak market, and after this test of the break higher it will be a good buy as that gives the market time to recover.
Volume: 9.098M Avg Volume: 9.086M
BUY POINT: $47.22 Volume=11M Target=$55.45 Stop=$46.78
POSITION: GDQ EW - May $47.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/gild.html
Play Date: 03/07/2008
LIFC (Lifecell--$40.23; -0.51; optionable): Biotechnology
http://biz.yahoo.com/p/l/lifc.html
EARNINGS: Announced 2-27-08
STATUS: Test 50 day EMA. LIFC broke higher just ahead of and after its earnings, moving off the 200 day SMA at 37.25 on strong volume. It ran into the 90 day MA (41.52) on that recovery, and then started to work laterally in a tight range over the 50 day EMA (40.11). As it works laterally money flow is surging higher, showing continued buying as it consolidates. Looking for some strong volume as it makes the break higher from this test.
Volume: 532.961K Avg Volume: 609.282K
BUY POINT: $41.88 Volume=900K Target=$48.31 Stop=$39.89
POSITION: QKL FH - June $40c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/lifc.html
Play Date: 03/07/2008
WFT (Weatherford International--$69.99; -0.42; optionable): Oil and gas service company
http://biz.yahoo.com/p/w/wft.html
EARNINGS: Announced 1-25-08
STATUS: Reverse head and shoulders. WFT is coming off a test of the 50 day EMA (66.05) on Tuesday when it tapped at that level and rebounded. Volume rose as it continued higher Wednesday and tried to run higher Thursday. It has formed the right shoulder to a 10 week accumulation pattern. Looking for a strong break higher on continued rising volume to enter the play.
Volume: 4.815M Avg Volume: 4.762M
BUY POINT: $71.68 Volume=6.5M Target=$82.45 Stop=$67.77
POSITION: WFT EN - May $70c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/wft.html
Play Date: 03/07/2008
XTO (XTO Energy--$60.83; -0.95; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Announced 2-12-08
STATUS: Breakout test. Made us some great money on its breakout run, and now it is making the test we wanted, coming back to the 10 day EMA (60.68), coming to rest there on the Thursday close on much lower, below average volume. Watching to see if XTO holds at this level and then makes the next break higher in its breakout run. This is the second test of the 10 day EMA after the breakout. When making powerful runs stocks tend to bounce 4 to 5 times off the 10 or 18 day EMA. XTO is one of the stocks that is in a bull market despite the market overall, and it is strong. That means it still has plenty of upside ahead of it.
Volume: 5.583M Avg Volume: 5.981M
BUY POINT: $61.88 Volume=6.2M Target=$70.95 Stop=$60.39
POSITION: XTO HL - Aug. $60c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.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.
|
us stock market
stock recommendation
|
