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TEAM TRADES

WOR: Back to basics as in basic materials, i.e., iron and steel. WOR was in a 3-month ascending wedge, riding above the 50 day MVA. It had been showing some strong accumulation volume spikes during February, and Friday's strong move to the top of the wedge had us on alert for today's move. It did not take the stock long to hit the buy point at 15.40, trading up to that point and then gapping over it about 20 minutes into the session. It ran to 15.50, and then bounced back down to 15.40. It would not trade below that level, and that bolstered our confidence in the breakout. Given the price, we were looking at stock positions though we did consider some low open interest options. The stock bounced up from 15.40, and the spread was anywhere from 12 cents down to 3 cents. The ask was 15.49 when we were putting in the order with a spread of about 8 cents. We just plunked the limit in at 15.48 for some reason (more like a typo) and left it. It did not take long to be confirmed. The stock then just banged around in its range for another 3 hours then tightened up right under 15.50 for an hour. It was either going to break higher or break down, but the volume was not bad. It broke higher and we thought about buying some more positions but decided to see how it finished out the session. It did fine, closing at 15.80 on strong volume.

PLAYS TO LOOK AT: DHI announced its split today! Most of the puts that were not closed out hit stop points today, but the upside plays have been very strong - great action from CUB, DHR, STU, LLL, FLIR, JCI, SLM and others.

BONUS PLAYS: DCOM broke out, and IR continued its great move!

ABT (Abbott Labs--$57.37; -0.12; optionable): Drug manufacturer.
http://biz.yahoo.com/p/a/abt.html
STATUS: ABT has been riding steadily up along its 50 day MVA (56.19), occasionally dipping below it for brief periods as it builds an ascending wedge with a top at 58. ABT hit up to 58 on its highs in January and February, dipping through the 50 day in mid-February but holding that level on its test back last week. ABT is now holding over the short-term MVA's (18 day at 56.80), at the point where it will decide to break out or drop back again. Today the stock showed a doji on lighter volume (2.47 million; average 3.2 million), and we are looking for a move to the breakout, which would be a new all-time high. Target on that move: 68.
BUY POINT: 58.10 on volume of 4.32 million. Stop: 55.
POSITION: Stock and/or May $55 calls to buy (ABT EK).

IEX (Idex Corp--$36.60; +0.71; optionable): Manufacturing.
http://biz.yahoo.com/p/i/iex.html
STATUS: Formed a cup from September-December, and pulled into a long handle that tested the 50 day MVA (then below 34), but bounced to breakout from there. The breakout carried the stock to 36.98, and over the last few weeks it has formed another handle type consolidation over the 18 day MVA (35.83), and it bounced up today on increased volume (108,800; average 61,700). Looking good for a breakout. Target on that move: 42.
BUY POINT: 37.08 on minimum volume of 85,000. Stop: 35.15 (7%).
POSITION: Stock.

INGR (Intregraph--$15.30; +0.25; optionable): Software.
http://biz.yahoo.com/p/i/ingr.html
STATUS: Formed a large cup with handle from May through January, and tried a breakout that failed at 15.09. INGR pulled back to test the 50 day MVA (13.82) in February, but has managed a bounce, and today took out the prior high on the previous breakout attempt after forming a two-week handle. Volume increased to a very solid 390,100 (average 199,100), and the left side high of the cup is ahead at 15.97. Technically still a buy on this move up to 15.84, but we will look at a strong break over the left-side high for a buy point as well. Target: 17.50.
BUY POINT: A continued buy from here, and on a move over 15.97, looking for continued strong volume. Stop: 14.23 (7%).
POSITION: Stock and/or July $12.50 calls to buy (IGQ GV).

SOV (Sovereign Bancorp--$13.38; +0.31; optionable): Savings and Loan.
http://biz.yahoo.com/p/s/sov.html
STATUS: Like INGR, has formed a large cup with handle pattern, recently testing its 50 day MVA (12.35) as it formed a handle. The handle has shaped up as a small cup, and the move back up over the last few sessions has shown huge volume (3.5 million; average 832,600). Today SOV broke over the prior handle high at 13.35. Very strong action, and we will look for a further move up to a target of 15.50. The left-side high (June) is at 13.50. It may take a pause after moving almost $1 the past two sessions, but we like the prospects of a further move as financials are starting to roll.
BUY POINT: 13.55 on continued strong volume. Stop: 12.60 (7%).
POSITION: Stock and/or July $12.50 calls to buy (SOV GV).

PRE-ANNOUNCEMENTS: Good patterns abound, with IGT, ACDO, CYN and KRI. SLM broke out, and many of our upside continue to move, including STU, and some stocks are coming back hard, including CTAS and MRBK. BER is also trying to move.

DHI ($41.77; +1.19): Got the stock split announcement today! DHI has been very strong, with its recent breakout from a pennant continuing its strength. On the news of the split, DHI ran up to 42.81, settling back to close with a doji. A nice pop to add to gains, but off of the late-day pullback we could see a bit of a rest. However, we will look for DHI to hold 40.50 and then set up to continue toward our target of 45.

DRYR ($43.99; +0.78): Forecast to announce a split with earnings on 4-24-02 before the open. Has formed a handle to its short double bottom. Volume has dried up the last couple of sessions, and it is holding strong over the 10 day MVA (42.75). Looking for a breakout, which is 44.98 on volume of 370,000. Stock only.

RUS ($31.53; -0.05): Researching a date. Has tightened into a nice pennant, with light volume as it holding over the support of its 18 day MVA (31.22). Today it tapped back toward the 18 day, pulling back up to close with a doji. The breakout is 31.95 on volume of 34,000. Stock only.

KRI ($66.94; +0.44): Forecast to announce a split on 4-24-02 before the open. There is also the shareholder meeting the next day at 9:30 PT. KRI has formed a nice pennant pattern after its recent breakout to a new high (68.73). Volume was up Friday on a move down to the support of the 18 day MVA (65.93), but that could have been some 'shakeout' selling that sometimes precedes a strong move up, especially with these types of patterns. Today KRI held the 18 day at its low of 66.04 on lower volume (409,100; average 405,100). The buy point is 68.10 on volume of 540,000, with stock and/or July $60 calls to buy (KRI GM - under 50 open interest).

PRE-SPLITS: CUB made quite a move! We are being cautious with any positions on GILD.

New Play:

JEC (Jacobs Engineering--$68.65; +3.15; optionable): Splits 2:1 on or about April 2.
http://biz.yahoo.com/p/j/jec.html
STATUS: JEC made a solid move back up from 62 last week, taking out its 50 day and 200 day MVA's (64.77 and 65.28), but pulling back to end last week. The 200 day held, however, as JEC bounced back up today, closing near last week's high of 69.18. There is resistance at 70 from several prior 2001 intermediate highs, so will watch that level closely on a run. Looking for JEC to make a move up toward its high of 75.70.
PLAY: Could rest a bit here first, but we are looking for a move over 69.18, with stock and/or July $65 calls to buy (JEC GM).

WERN ($26.97; +2.73): Splits 4:3 on or about March 15. WERN emphatically moved back onto the radar screen today, running up on big volume (467,900; average 320,700) after having wallowed for a while under the 50 day MVA (25.52). We had not bitten on the drop, eschewing a put for a possible run back over resistance, and today it closed back in the range of some December-February highs (all-time high from late-January at 29.57). We will see if it can continue the move from here, looking for it to take out the recent high at 27.60. On that move, stock and/or April $25 calls to buy (QEH DE).

CONTINUING CANDIDATES: Breakout by DHR! Other upside plays still doing well - LLL, FLIR, JCI, DHR.

HB ($59.43; -0.27): We continue to wait for HB, which is holding its 18 day MVA (59.39) as it tightens in its four-week pennant. Volume has dipped on recent moves (down to 101,000; average 148,700), and it looks good for a move. Over 60.95 on volume of 200,000, with stock and/or June $55 calls to buy (HB FK - under 100 open interest).

AZO ($64.06; +0.16): After the recent tumble, AZO held on today at its recent consolidation lows, showing a doji on reduced volume (1.18 million; average 1.27 million). Could be just a rest before a continued drop, and we could see that with a market pullback. On a drop through 63.25 on increased volume of 1.5 million, April $70 or June $75 puts to buy (AZO PN or AZO RO).

POST-SPLITS: CHS and MGAM at new highs!

BSYS ($33.47; +1.07): Nice move! BSYS was not showing a lot of spunk lately, although it did hold a higher low (18 day MVA at 31.79) on its last trip down (rather than the 50 day, at 31.04). After a relatively light volume move up Friday, BSYS broke to a new high today, making the run on volume of 1.03 million (average 561,600). Still a buy up to 34.71 on continued strong volume, with stock and/or June $30 calls to buy (BQY FF).

XRAY ($34.01; +0.73): Split 3:2 effective February 1. Good bounce from the 50 day MVA (33.06), closing back up near the high (34.69, from late December). There was the good volume we wanted on this move, at 413,000 (average 292,800). Looking for a continued strong move over the high for more positions, toward a target of 38. Stock and/or July $33.38 calls to buy (RHE GX).

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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