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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: Some energy and steel ready to move
Play Date: 05/15/2008
BHI (Baker Hughes--$82.47; +2.51; optionable): Oil and gas service company
http://biz.yahoo.com/p/b/bhi.html
EARNINGS: Announced 4-22-08
STATUS: Reverse head and shoulders or Double bottom w/handle. Either one and you have a good pattern. Volume jumped Thursday as BHI jumped off the 200 day SMA at that acted as support the past 4 weeks as the stock worked laterally, forming that right shoulder or handle to its 8 month base. Like that volume spike and looking for more as it continues the break higher. We move in on that.
Volume: 5.352M Avg Volume: 4.379M
BUY POINT: $82.78 Volume=6.5M Target=$95.65 Stop=$79.11
POSITION: BHI GP - July $80c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/bhi.html
Play Date: 05/15/2008
DNR (Denbury Resources--$33.77; +0.27; optionable): Independent oil and gas
http://biz.yahoo.com/p/d/dnr.html
EARNINGS: 8-5-08
STATUS: Ascending triangle. Broke higher Tuesday, clearing the highs in its 5 month base that made higher and higher lows along the 200 day SMA. Volume was up on the break but it was not blowout. Tested back to the 10 day EMA on the Thursday low (32.67) and rebounded for a gain. Nice test and ready to move in as DNR continues higher on solid trade.
Volume: 2.157M Avg Volume: 2.281M
BUY POINT: $34.55 Volume=3.2M Target=$41.48 Stop=$32.55
POSITION: DNR IF - Sept. $30c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/dnr.html
Play Date: 05/15/2008
DO (Diamond Offshore--$135.30; +6.01; optionable): Offshore drilling rigs.
http://biz.yahoo.com/p/d/do.html
EARNINGS: Announced 4-24-08
STATUS: Ascending base. Solid volume as DO bounced Tuesday and Thursday off of intraday tests of the 50 day EMA. Thursday the move stuck and DO cleared its May highs on very solid above average volume. There is still the April high at 140 hit before this test, but like the strong trade as it makes the break from this 2 week lateral range. This puppy can fly when it gets a head of steam.
Volume: 3.098M Avg Volume: 2.08M
BUY POINT: $135.77 Volume=2.2M Target=$155.95 Stop=$131.77
POSITION: DO IG - Sept. $135c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/do.html
Play Date: 05/15/2008
STLD (Steel Dynamics--$36.37; +1.89; optionable): Steel and iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: Announced 4-21-08
STATUS: Test 50 day EMA. Nice surge February to late April; got a pop on the earnings, but as it had already run, that news was used to take STLD back to the 50 day EMA (34.22) where it bottomed twice this month. Best volume in a month Thursday as STLD broke higher off this key support level. Looking to move in as it continues this bounce off support.
Volume: 5.5M Avg Volume: 4.447M
BUY POINT: $36.65 Volume=5.5M Target=$43.95 Stop=$34.21
POSITION: RQL HG - Aug. $35c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/stld.html
Good Investing!
Jon L. Johnson and your IH Alerts 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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trade stock
stock recommendation
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