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us stock market, trend trading stock
Begin part 3 of 3
THE PLAYS:
New Plays:
New Pre-Announcement Plays are found in the Pre-Announcement section.
Pre-Split Plays:
Play Date: 05/08/2008
IVGN (Invitrogen--$92.84; -0.16; optionable): Biotechnology. Splits 2:1 on 5-28-08
http://biz.yahoo.com/p/i/ivgn.html
EARNINGS: Announced 4-22-08
STATUS: Test breakout. Blasted out of a 13 week reverse head and shoulders base on its earnings news. It continued the run on up 96 on the move and has tested the past week, coming back to near support at the 10 day EMA on low volume. Holding this support the past four sessions in a tight range. Just waiting for the break higher on stronger volume to give us the entry to the pre-split run.
Volume: 435.018K Avg Volume: 749.633K
BUY POINT: $94.44 Volume=1.1M Target=$105.95 Stop=$92.32
POSITION: IUV HS - Aug. $95c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/ivgn.html
Post-Split Plays:
Play Date: 05/08/2008
ANSS (Ansys--$42.90; +0.05; optionable): Technical software
http://biz.yahoo.com/p/a/anss.html
EARNINGS: Announced 5-1-08
STATUS: Test breakout. Surged higher on its earnings to start the month, breaking out of a 17 week cup with handle base. Strong volume on the move and then tested back the past week on lower trade, showing few sellers. Great breakout to a new all-time high, nice test giving us a great entry point when it makes the break higher.
Volume: 648.271K Avg Volume: 892.468K
BUY POINT: $43.44 Volume=1M Target=$51.95 Stop=$41.77
POSITION: QUS GH - July $40c (72 delta) &/or Stock
http://www.investmenthouse.com/ci/anss.html
Play Date: 05/08/2008
CAM (Cooper Cameron--$50.47; +2.63; optionable): Oil and gas service company
http://biz.yahoo.com/p/c/cam.html
EARNINGS: 5-1-08
STATUS: Double bottom w/handle. Broke nicely higher Thursday off the 18 day EMA, heading toward the breakout from the handle to its 17 week base. Not much volume as it made the break higher; want to see more trade as it clears the base.
Volume: 3.44M Avg Volume: 3.534M
BUY POINT: $51.12 Volume=4.5M Target=$60.95 Stop=$48.11
POSITION: CAM HJ - Aug. $50c (57 delta) &/or Stock
http://www.investmenthouse.com/cs/cam.html
Play Date: 05/08/2008
NTES (Netease.com--$22.66; -0.57; optionable): Chinese internet content
http://biz.yahoo.com/p/n/ntes.html
EARNINGS: Late May
STATUS: Breakout test. Blasted higher in late April, gapping out of a 5.5 month base on strong, above average volume. Rallied up to 24 on the high and now testing this week, coming back to the 10 day EMA (22.54) on the Thursday low. Looking for it to hold at this near support and resume the breakout run. That is when we move in.
Volume: 1.36M Avg Volume: 1.093M
BUY POINT: $23.11 Volume=1.5M Target=$28.95 Stop=$22.31
POSITION: NQG IX - Sept. $22.50c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/ntes.html
New buy point on current position:
Play Date: 05/08/2008
ITU (Banco Itau--$27.91; +0.36; optionable): Foreign bank
http://biz.yahoo.com/p/i/itu.html
EARNINGS: Announced 5-6-08
STATUS: Breakout test. Explosive move to end April and start May, surging to 32 and making us some very nice coin as it cleared its 4.5 month base and rallied. It has come back to test that move, selling down to the 18 day EMA (27.25) Wednesday and Thursday. Watching to see if ITU turns back up on some strong trade to start the move again. That is when we move in.
Volume: 6.113M Avg Volume: 6.164M
BUY POINT: $28.38 Volume=7.5M Target=$34.00 Stop=$27.05
POSITION: ITU IE - Sept. $25c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/itu.html
PRE-ANNOUNCEMENT PLAYS
We consider many stocks for pre-announcement plays every week. We get information regarding upcoming announcements and other data that leads us to conclude a split announcement is coming. Even then, however, we have to be discriminating. We have to see a strong technical pattern as well, and thus we reject many potential candidates based on a weak technical position.
The key today is to find stocks in strong patterns or that are ready to rebound off support. A split announcement will amplify the move higher in these cases as we enjoy moves from strong leaders in position to run higher. We won't chase a stock in a poor technical position even if we know it is going to split; it simply won't do us any good, i.e. it typically won't make us any money to the upside. We could list all stocks we think are going to split, but again, that won't make us any money unless we are in an office pool as to what stocks will or won't announce a stock split.
Current Pre-Announcement Plays:
This is a list of stocks we are looking to announce splits. We are not in all of the potential splits plays but are letting them set up for the next move. In each report we look at the candidates that are in the best patterns ahead of their potential announcements. This focus on leaders in good patterns allows us to make good money even if companies do not announce the split. The key with splits is the pattern and of course the strong earnings growth that put it in the pattern in the first place.
AAPL: No split announcement again, but AAPL is still moving well, leading the market ahead of its next iPhone announcement.
ATK: Testing the strong breakout move
ATW: Tentative for 5-8-08. No split announcement but solid earnings after the close.
BHP: Mid-May
CELG: Researching date
EAC: Still surging.
GGB: Researching date
GILD: Researching date
IBM: No split announced with earnings. Nice test of the break higher.
JOYG: Researching date.
LSTR: Tentatively set mid-July
OTEX: No announcement with earnings
RIG: Forecast mid-May
SCHN: Researching date
UNP: Announced the split last Thursday and still moving well.
UPL: No announcement thus far but moving higher nicely.
VMI: Mid-July
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 05/08/2008
GD (General Dynamics--$91.46; +1.78; optionable): Aerospace/defense
http://biz.yahoo.com/p/g/gd.html
EARNINGS: 7-23-08
STATUS: Cup w/handle. Volume swelled Tuesday and Wednesday as GD tested the 10 day EMA, the bottom of the handle to its 5.5 month base. After a nice break higher in April to finish the cup it worked laterally on lower, below average volume, forming the handle or shakeout that precedes the breakout. Nice price break higher Thursday, but volume backed off after two good sessions. Looking for more volume as it makes the breakout move. Very nice.
Volume: 1.846M Avg Volume: 1.916M
BUY POINT: $91.88 Volume=2.9M Target=$103.95 Stop=$89.77
POSITION: GD HR - Aug. $90c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/gd.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 04/26/2008
IBM (International Business Machines--$124.92; +0.78; optionable)
http://biz.yahoo.com/p/i/ibm.html
EARNINGS: Announced 4-16-08
STATUS: Flying plateau. Volume was up the past two sessions on above average volume as it rapped at the breakout point. Good bounce up off near support at the 18 day and ready to move in as IBM continues the breakout move. To recap: IBM was one of the earnings announcements that turned the tide against the mediocrity that started the earnings season. It reported and surged the next session, jumping out of a 6.5 month double bottom with handle base. After that surge it started laterally, moving in a tight range lat week as it waited for the 10 day EMA (122) to rise and catch up with it. Friday it reached down to the 10 day just to feel for it and bounced back up. Low volume on the lateral move; no one is selling. Once the short term profit takers are out of the way IBM will make its next break higher. Very strong.
Volume: 9.794M Avg Volume: 8.685M
BUY POINT: $125.21 Volume=9M Target=$139.95 Stop=$121.77
POSITION: IBM GE - July $125c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/ibm.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 05/07/2008
BAM (Brookfield Asset Management--$34.56; +0.41; optionable): Asset management services
http://biz.yahoo.com/p/b/bam.html
EARNINGS: Announced 4-30-08
STATUS: Test 200 day SMA. Broke higher Thursday though volume didn't move with it. Looking for some more trade as BAM continues the move. Solid, just needs to show the break. To recap: BAM surged in April ahead of its earnings report, breaking form a 2 month double bottom with handle base that turned out to be the bottom of its selloff that started in mid-2007. Strong surge up through the 200 day SMA (33.51) to start May, then sidestepping the past week in a narrow range just over that key level. Volume surged higher Wednesday as BAM gapped modestly higher then closed flat. Very good relative strength for a financial in the Wednesday trade, and looking for this strength to provide another break higher and run toward 40.
Volume: 999.897K Avg Volume: 1.348M
BUY POINT: $34.75 Volume=2M Target=$39.95 Stop=$33.39
POSITION: BAM IG - Sept. $35c (54 delta, 139 OI) &/or Stock
http://www.investmenthouse.com/ci/bam.html
Play Date: 05/07/2008
CX (Cemex SA--$28.44; +0.31; optionable): Cement
http://biz.yahoo.com/p/c/cx.html
EARNINGS: Announced 4-21-08
STATUS: Cup. Still piddling around at the 200 day SMA, but holding it nonetheless and looking good for the continued break higher. To recap: A big leader in 2006 and to mid-2007, CX them peaked in June of that year and started the current long base. It bottomed in January and bounced, then moved laterally until starting higher to end April. A nice rounded bottom has formed, and the break above the 200 day SMA (28.17) Monday on stronger, above average volume was a key milestone. It added to the gain Tuesday then fell back to that support on Wednesday as volume fell back. This is a considerable base and thus is solid. Looking for CX to hold the bottom it has poured here and break higher off this support and continue a steady trend higher.
Volume: 4.113M Avg Volume: 5.32M
BUY POINT: $28.88 Volume=7M Target=$34.95 Stop=$27.89
POSITION: CIZ GE - July $25c (78 delta) &/or Stock
http://www.investmenthouse.com/ci/cx.html
CONTINUING LEADER PLAYS:
Play Date: 05/06/2008
BCSI (Blue Coat Systems--$25.10; +1.00; optionable): Software
http://biz.yahoo.com/p/b/bcsi.html
EARNINGS: Third week of May
STATUS: Double bottom with handle. Still enticing as it slides sideways over the 90 day SMA, bouncing back up Thursday from the Wednesday pullback, but holding the tight, narrow range the whole way. Still just looking for that break higher. To recap: Broke higher to start the month and has sidestepped the past two sessions, forming something of a handle to its 11 week base formed at the bottom of a long 7 month downtrend. Could call this a trend reversal as well. Either way, it is cracking over the 90 day SMA, setting up what looks to be the start of a nice recovery. Great volume on the upside sessions, clearing the March peak, the 'hump' in the short pattern. Ready to step in as it continues higher on a jump in volume.
Volume: 684.707K Avg Volume: 1.28M
BUY POINT: $25.42 Volume=1.4M Target=$31.85 Stop=$23.64
POSITION: IYU GE - July 25c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/bcsi.html
Play Date: 05/07/2008
BMRN (Biomarin Pharmaceuticals--$37.51; -0.03; optionable): Biotech
http://biz.yahoo.com/p/b/bmrn.html
EARNINGS: Announced 4-29-08
STATUS: Double bottom w/handle. Still in a very tight lateral move on low volume as BMRN sets up a very nice foundation for a strong break higher. Very nice. To recap: Strong surge higher the last day of April completed the last bounce of the 12 week base. Rallied to 38 and then slid laterally the past week on low volume in a narrow range, holding over the 90 day SMA (36.44) as it forms the handle to its base. Money flow is leading higher even as BMRN works laterally. Perched for the breakout to a new all-time high and this base has set the move up well.
Volume: 1.092M Avg Volume: 1.914M
BUY POINT: $38.21 Volume=2.9M Target=$45.95 Stop=$36.21
POSITION: NUR GG - July $35c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/bmrn.html
Play Date: 05/03/2008
EQIX (Equinix--$88.66; +1.07; optionable): Telecom
http://biz.yahoo.com/p/e/eqix.html
EARNINGS: Announced 4-23-08
STATUS: Cup w/handle. Full test of the 200 day SMA (86.81) this week, tapping it on the lows and rebounding. Very nice setup. Need to see more volume, and if we do, we can step in earlier than the buy point below. To recap: Working laterally last week over the 200 day SMA after gapping higher in late April on earnings. After that strong volume move it needed to consolidate, and this handle is doing that, preparing for the breakout from its 6 month base. Excellent action with money flow well out ahead of the price, rising even as price moves laterally. That divergence is going to lead to the breakout move.
Volume: 429.917K Avg Volume: 1.297M
BUY POINT: Aggressive: $90.32; Breakout: $93.22 Volume=1.9M Target=$109.95 Stop=$88.32
POSITION: FQS IR - Sept. $90c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/eqix.html
Play Date: 05/06/2008
FLIR (Flir Systems--$33.11; -0.08; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/f/flir.html
EARNINGS: Announced 4-24-08
STATUS: Test breakout. Still testing the 18 day EMA, showing a hammer doji there on Thursday as volume bounced. Still good for the break higher and a nice run for us. To recap: Nice surge on the earnings news, bolting higher out of a 4 month reverse head and shoulders base on strong trade. It needed a break after that move and has worked laterally the past two weeks, fading back to the 10 day EMA (33.76) on the Tuesday low and rebounding for a gain. A nice test of the breakout move, and this consolidation has set it up for the next move higher to take on an all-new high. Very nice, very strong.
Volume: 1.106M Avg Volume: 1.307M
BUY POINT: $35.36 Volume=1.8M Target=$42.45 Stop=$33.57
POSITION: FFQ GG - July $35c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/flir.html
Play Date: 05/06/2008
LUK (Leucadia National--$53.33; +0.63; optionable): Lumber, etc.
http://biz.yahoo.com/p/l/luk.html
EARNINGS: Announced 4-21-08
STATUS: Breakout test. Still holding the 10 day EMA on lower trade after that big Thursday price and volume surge. Just pausing and still in great position to make the break higher. To recap: Working in a four week trading range after surging to start April, breaking from a 5.5 month base. Volume surged Tuesday as LUK moved off the 18 day EMA near the lows in the trading rang and bumped at the breakout point. Looking to use the breakout from the range on continued solid volume as our entry point on this strong like oak play.
Volume: 1.02M Avg Volume: 977.395K
BUY POINT: $54.38 Volume=1M Target=$62.55 Stop=$51.88
POSITION: LUK IK - Sept. $55c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/luk.html
Play Date: 05/06/2008
NSC (Norfolk Southern--$62.28; +1.10; optionable): Railroads
http://biz.yahoo.com/p/n/nsc.html
EARNINGS: Announced 4-22-08
STATUS: Test breakout. Paused to test the 10 day EMA after the strong Tuesday break higher on solid volume. Came back Wednesday and then bounced modestly Thursday on low trade. Looking for a clean break higher to give us the buy. To recap: Gapped higher on earnings in April, clearing a 9 month base. Rallied to 62 on that breakout and then tested, fading to the 18 day EMA on the earnings results; actually gapping lower. But it managed to hold that level and work laterally, setting up the next move. Tuesday volume surged back above average as NSC surged higher once more. The rails are on rails, and looking to step into this one as it continues this breakout move.
Volume: 2.575M Avg Volume: 3.607M
BUY POINT: $62.54 Volume=3.6M Target=$71.95 Stop=$59.38
POSITION: NSC IL - Sept. $60c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/nsc.html
Play Date: 05/06/2008
TTEK (Tetra Tech--$23.47; +0.50; optionable): Consulting, engineering, construction services
http://biz.yahoo.com/p/t/ttek.html
EARNINGS: Announced 4-30-08
STATUS: Breakout test. Nice tap of the 10 day EMA on this test and started to bounce Thursday. Volume fell off to below average, however. Excellent set up. To recap: Gapped out of a 6 month cup base to start the month, rising some seriously good earnings higher. It has come back to test that move on lower and lower volume, tapping at the 10 day EMA (22.65) on the Tuesday low before rebounding. May snug up a bit more toward the 10 day EMA, but a nice pullback, and when it bounces to continue the breakout we are going to step in and ride its services higher.
Volume: 523.207K Avg Volume: 585.456K
BUY POINT: $23.65 Volume=900K Target=$28.45 Stop=$22.55
POSITION: TQI IX - Sept. $22.50c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/ttek.html
Play Date: 05/03/2008
UTHR (United Therapeutics--$90.77; +0.06; optionable): Drugs
http://biz.yahoo.com/p/u/uthr.html
EARNINGS: Announced 5-1-08
STATUS: Reverse head and shoulders. After bouncing nicely to start the week, UTHR has faded back to tap the 10 day EMA on the Thursday low. A nice, orderly test, showing a tight doji Thursday. Looks ready to make the break higher. Very solid. To recap: Nice gap higher on volume with its earnings, clearing a 14 week base that formed at the bottom of a larger 5 month pattern. Held at the 200 day SMA on the lows of the pattern, showing key institutional support at that level. This base also filled a huge gap from early November on good news about one of its products. Excellent money flow, and strong volume Thursday and Friday as it started the move. Looking to move in as UTHR continues higher.
Volume: 501.119K Avg Volume: 643.748K
BUY POINT: New: $92.68 (orig. $91.21) Volume=850K Target=$104.95 Stop=$87.65
POSITION: FUH HR - Aug. $90c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/uthr.html
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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us stock market
trend trading stock
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