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stock recommendation, stock market recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 04/07/2008
IMCL (Imclone--$44.64; +0.64; optionable): Biotech drugs
http://biz.yahoo.com/p/i/imcl.html
EARNINGS: Late April
STATUS: Double bottom w/handle. Volume swelling above average the past two sessions as IMCL makes a higher low at the 10 day EMA (43.77), forming the handle to a short 6 week base that is the tail end of a larger 6 month cup. Very interesting pattern, but the higher lows the past 3 weeks and the strong money flow moving higher ahead of price are some very bullish features for IMCL. Looking for continued volume as IMCL finally makes the breakout from this solid base setting the foundation for the upside.
Volume: 2.259M Avg Volume: 1.485M
BUY POINT: $45.55 Volume=2.2M Target=$52.95 Stop=$43.38
POSITION: QCI HI - Aug. $45c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/imcl.html
Play Date: 04/07/2008
KOP (Koppers Holdings--$45.79; +0.79; optionable): Lumber, wood production
http://biz.yahoo.com/p/k/kop.html
EARNINGS: Third week of May
STATUS: Double bottom w/handle. Strong, above average volume the past two sessions as KOP flexes for and starts the breakout move, gapping higher Monday. Very nice 6 month base with a classic double bottom that has set the basis for a breakout to a new all-time high and a solid run. Out of nowhere a lumber company surges to a breakout along with transports and other economically sensitive stocks.
Volume: 314.271K Avg Volume: 253.781K
BUY POINT: $46.21 Volume=375K Target=$53.95 Stop=$43.65
POSITION: KOP FI - June $45c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/kop.html
Play Date: 04/07/2008
SKIL (Skillsoft--$10.51; -0.30; optionable): Multimedia graphics software
http://biz.yahoo.com/p/s/skil.html
EARNINGS: Announced 3-14-08
STATUS: Test breakout. Nice surge on earnings with a lot of strong volume that broke SKIL out in mid-March. Nicely formed 4 month double bottom to end a longer 9 month base. After that breakout SKIL has held its gains; like a stingy stock to the upside. Very nice, tightening lateral consolidation forming a flag. Expecting a strong break higher from this pattern; that is how these are typically resolved. Looking to move in on that break higher.
Volume: 183.873K Avg Volume: 288.598K
BUY POINT: $10.95 Volume=325K Target=$13.18 Stop=$10.36
POSITION: QAG HB - Aug. $10c (65 delta, 35 OI) &/or Stock
http://www.investmenthouse.com/cd/skil.html
Play Date: 04/07/2008
SSO (ProShares SP500 Ultra ETF--$71.00; -0.09; optionable): 2:1 SP500 ETF (moves twice as fast as SP500)
http://biz.yahoo.com/p/s/sso.html
STATUS: Double bottom w/handle. Working laterally over the 50 day EMA (69.76), forming the handle to its 11 week pattern that matches the SP500 and its bottoming pattern. Looking for some stronger volume as SSO breaks higher through the buy point. The buy point is more aggressive, but if the market is making a move on volume we are comfortable in stepping in at that point.
Volume: 6.042M Avg Volume: 8.549M
BUY POINT: $72.35 Volume=10M Target=$79.75 Stop=$71.39
POSITION: SSO FR - June $71c (58 delta, 82 delta)
http://www.investmenthouse.com/ci/sso.html
Play Date: 04/07/2008
WAB (Wabtec Westinghouse Air Brake--$39.28; +0.72; optionable): Railroad brakes
http://biz.yahoo.com/p/w/wab.html
EARNINGS: 4-24-08
STATUS: Cup w/handle. Did a scan of transportation stocks and this one popped up. It gapped higher last week on above average volume, clearing a 9 month base that formed a reverse head and shoulders at the bottom of the pattern. As with many transportation stocks related to rails and trucking, WAB has set up a great pattern and you have to like the break higher. It tested the move last Wednesday to Friday and then was up Monday on rising, above average volume. Money flow is running higher ahead of price, and with this move it looks as if WAB wants to follow that move. Very nice.
Volume: 561.115K Avg Volume: 513.219K
BUY POINT: $39.84 Volume=750K Target=$47.95 Stop=$37.88
POSITION: WAB GH - July $40c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/wab.html
Good Investing!
Jon L. Johnson and The Daily 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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stock recommendation
stock market recommendation
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