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us stock market, top stock pick
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 03/27/2008
CSH (Cash America Intl.--$38.08; -1.45; optionable): Pawn shops
http://biz.yahoo.com/p/c/csh.html
EARNINGS: 4-28-08
STATUS: Trend reversal. CSH broke sharply higher this month, moving through a 14 month down trendline formed off the December 2006 peak that marked the top of a year and one-half run. A year and one-half up, just over a year down; sounds ready to move back up. It is doing just that, surging higher past the October 2007 peak where it stalled a rebound attempt. After that move it peaked Tuesday and has started to come back. Looking for it to turn back up and move past the October peak (39) and give us a buy. It may come back some more toward the 10 day EMA (36.09) before turning back up. If it does we will step in on the bounce off that level at 36.65.
Volume: 644.7K Avg Volume: 423.055K
BUY POINT: From the Thursday close: $39.22. On a test of the 10 day EMA at 36, 36.65 on the way back up. Volume=700K Target=$44.31 Stop=$36.89
POSITION: CSH FH - June $40c (51 delta, 189 OI) &/or Stock
http://www.investmenthouse.com/ci/csh.html
Play Date: 03/27/2008
DRS (DRS Technologies--$57.01; +1.04; optionable): Aerospace/defense
http://biz.yahoo.com/p/d/drs.html
EARNINGS: 5-13-08
STATUS: Cup w/handle. Great volume Thursday as DRS bounced off a weeklong test of the 50 day EMA (55.36). The 50 day EMA acted as support in the handle, the shakeout before the next break higher. Nicely formed 15 week base that is part of a larger 2 year ascending triangle, a nice bullish pattern. Money flow is surging higher ahead of price, and looking to move in as DRS continues its move higher on volume and clears the handle. Very nice and a very solid stock.
Volume: 641.35K Avg Volume: 508.119K
BUY POINT: $58.08 Volume=700K Target=$66.85 Stop=$56.22
POSITION: DRS FK - June $55c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/drs.html
Play Date: 03/27/2008
JAKK (Jakks Pacific--$28.08; +0.52; optionable): Toys, pet toys, electronics
http://biz.yahoo.com/p/j/jakk.html
EARNINGS: Announced 2-20-08
STATUS: double bottom with handle. A jack of all trades in the toy arena, and it has set up a solid 8 month base preparing the stock for a break to a new all-time high. Excellent volume in late February as JAKK surged higher and formed the second leg of its double bottom. It has spent the past 4 weeks moving laterally and lower on very low, declining volume, forming the handle, the point where the impatient ones are weeded out. Volume has started to swell over the past week as JAKK starts to stir to the upside. Looks very good for the breakout soon.
Volume: 688.346K Avg Volume: 654.168K
BUY POINT: $28.95 Volume=981K Target=$34.95 Stop=$26.92
POSITION: UFF FE - June $25c (74 delta) &/or Stock
http://www.investmenthouse.com/ci/jakk.html
New buy points on current positions:
Play Date: 03/27/2008
AAPL (Apple Computer--$140.25; -4.81; optionable)
http://biz.yahoo.com/p/a/aapl.html
EARNINGS: 4-23-08
STATUS: Cup. After a nice run higher for us on its first serious run off the bottom of its 12 week cup base, AAPL started to test back Thursday, but doing so on lower, below average volume. Of course all of the volume this past three weeks is on below average volume. Nonetheless, it shows now real selling, and AAPL closed where it gapped lower in late January. If it holds here and starts back up we are in for more positions. If it continues back to the 50 day EMA (137) we will be patient and pick it up as it bounces off of that support.
Volume: 35.708M Avg Volume: 48.109M
BUY POINT: $141.42 Volume=50M Target=$159.95 Stop=$136.88
POSITION: APV GH - July $140c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/aapl.html
Play Date: 03/27/2008
CSX (CSX Corp.--$55.46; -1.51; optionable): Railroads
http://biz.yahoo.com/p/c/csx.html
EARNINGS: 4-15-08
STATUS: Test breakout. CSX is making the second test of its mid-March breakout from an 8 month double bottom with handle base. It surged on solid volume for us and has started the test the past two sessions. It will likely come back to test the 10 day EMA (54.22) on the low of the test and then rebounde. We are looking to pick it up off that test, adding to positions in a very strong market leader.
Volume: 5.043M Avg Volume: 6.432M
BUY POINT: $54.55 Volume=7.5M Target=$61.45 Stop=$53.97
POSITION: CSX HK - Aug. $55c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/csx.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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us stock market
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