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trade stock, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside: A good variety of tech, construction, metals
Play Date: 05/17/2008
ASML (ASML Holdings--$30.30; +0.14; optionable): Chip equipment
http://biz.yahoo.com/p/a/asml.html
EARNINGS: 7-16-08
STATUS: Cup w/handle. Nice run from mid-2006 through October 2007 needed a consolidation. ASML has set up a nice 5.5 month base to digest the run and lay the foundation for a new breakout and run. Has moved laterally the past three weeks, forming the handle to the base right at the 200 day SMA (29.31). Bounced to end last week, bumping at the breakout but not quite the volume it needs. Good volume, just not a blast of buying. Money flow has turned up ahead of price as it works laterally and looking for ASML to follow it this week. Very nice pattern, great set up.
Volume: 2.872M Avg Volume: 3.154M
BUY POINT: $30.49 Volume=4.5M Target=$36.78 Stop=$29.22
POSITION: MFQ GF - July $30c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/asml.html
Play Date: 05/17/2008
MTRX (Matrix Service--$24.80; +0.24; optionable): Construction, repair services for US, Canadian petroleum and power industries
http://biz.yahoo.com/p/m/mtrx.html
EARNINGS: Announced 4-3-08
STATUS: Double bottom w/handle. Strong surge to start May, moving up to form the right side of a 6.5 month base. Spent the last half of the week working laterally on low volume, forming a handle to the base. In a combination area where it benefits from all of the oil and gas activity yet doesn't have to worry about drilling and production. Money flow is running strong ahead of price and that typically means an upside breakout. May take a few more days to set up for the breakout. Just going to be patient and let the breakout come to us.
Volume: 181.497K Avg Volume: 362.844K
BUY POINT: $25.05 Volume=550K Target=$29.95 Stop=$23.44
POSITION: QXW HE - Aug. $25c (56 delta, 121 OI) &/or Stock
http://www.investmenthouse.com/ci/mtrx.html
Play Date: 05/17/2008
PCLN (Priceline.com--$135.49; -3.06; optionable): Online travel and hotel services
http://biz.yahoo.com/p/p/pcln.html
EARNINGS: Announced 5-8-08
STATUS: Test breakout. Gapped higher on its earnings, giving us a nice gain that we took on that move, figuring it would not get any better before a test. PCLN is now making that test, coming back to the 10 day EMA (134) on mostly lower volume. Looking for a solid bounce off of this level to give us a new buy point as we look for a run similar to November where PCLN did the same thing with the gap higher, the test, and then another big run.
Volume: 1.343M Avg Volume: 1.603M
BUY POINT: $135.77 Volume=1.8M Target=$155.95 Stop=$133.65
POSITION: PNE GG - July $135c (56 delta)
http://www.investmenthouse.com/ci/pcln.html
Play Date: 05/17/2008
SLT (Sterlite Industries--$21.82; +0.90; optionable): Copper production in India
http://biz.yahoo.com/p/s/slt.html
EARNINGS: Nothing confirmed but may announce this week.
STATUS: Reverse head and shoulders. Strong volume Friday as SLT rallied toward the breakout from its 16 week base. Made it right up to the neckline in the pattern to end the week, and a break higher this coming week looks imminent, particularly with money flow leading the way higher. Very nice and shiny, like money.
Volume: 1.782M Avg Volume: 903.306K
BUY POINT: $22.24 Volume=1.2M Target=$27.95 Stop=$20.68
POSITION: SLT ID - Sept. $20c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/slt.html
Play Date: 05/17/2008
VIP (Vimple Communication--$33.59; +0.98; optionable): Russian wireless telecom
http://biz.yahoo.com/p/v/vip.html
EARNINGS: Announced 3-12-08
STATUS: Double bottom w/handle. Nicely formed 12 week pattern has formed inside a larger 5 month base, forming the double bottoms near the 200 day SMA (31.65), bouncing to start the month, then working laterally back to the 10 day EMA the past week. Bounced Friday on some better volume, just clearing the 90 day SMA. Poised to make the move higher and deliver a breakout. Really like how VIP has plenty of room overhead to run and makes us some great money without having to plow new ground. A strong runner in 2007 that peaked in late December, VIP has now set up a nice base to give us a good entry point when it jumps back up on strong trade.
Volume: 2.898M Avg Volume: 3.297M
BUY POINT: $34.24 Volume=4.5M Target=$39.95 Stop=$32.24
POSITION: VIQ GF - July $30c (77 delta) &/or Stock
http://www.investmenthouse.com/ci/vip.html
Play Date: 05/17/2008
VSEA (Varian Semiconductor--$40.01; -0.68; optionable): Chip equipment
http://biz.yahoo.com/p/v/vsea.html
EARNINGS: Announced 4-24-08
STATUS: Test breakout. Announced earnings in late April and surged higher on strong volume, forming the second leg of a classic double bottom. After the run VSEA worked laterally for a couple of weeks. Letting the 10 day EMA catch up with it. VSEA broke out Wednesday and added some gain Thursday before a test back to the 200 day SMA Friday, holding that level. Strong volume on that break higher and lower, below average volume trade on the test. Nice break higher, nice hold of the 200 day SMA support. Now all it has to do for us to move in is to continue the breakout move. Plenty of room overhead to run and our initial target is just that; if it is running hard when it gets there we will take some gain and let it keep on running for us.
Volume: 1.455M Avg Volume: 1.529M
BUY POINT: $40.92 Volume=1.8M Target=$48.95 Stop=$38.55
POSITION: UES HH - Aug. $40c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/vsea.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
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