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us stock market, trend trading stock
Begin part 3 of 3
THE PLAYS
New Pre-Announcement plays contained in that section.
Post-Split:
Play Date: 06/03/2008
APH (Amphenol Corp.--$48.01; +0.75; optionable): Electrical fiber optic, coax, flat ribbon cables, etc.
http://biz.yahoo.com/p/a/aph.html
EARNINGS: Mid-July
STATUS: Double bottom w/handle. APH broke out from a 4 month double bottom with handle base in mid-April on strong earnings, rallying past the pattern high and hitting 48 on the breakout run. It tested the past five weeks, forming another smaller double bottom with handle. Volume surged Monday and Tuesday as APH broke higher off the 10 day EMA test. Closed well off its high Tuesday but still looks great for the break higher to continue. Very nice.
Volume: 1.938M Avg Volume: 1.148M
BUY POINT: $48.22 Volume=1.4M Target=$55.95 Stop=$46.38
POSITION: APH JI - Oct. $45c (53 delta) &/or Stock
http://www.investmenthouse.com/cs/aph.html
Leader plays:
Play Date: 06/03/2008
AGU (Agrium--$89.23; +2.00; optionable): Ag chemicals
http://biz.yahoo.com/p/a/agu.html
EARNINGS: 8-6-08
STATUS: Ascending base. Strong volume surge Tuesday as AGU heads toward the breakout from its 6 week base formed making higher lows at the 50 day EMA (81.35) After a strong surge in April AGU has consolidated once more and looks ready to make the next breakout. These bases tend to yield strong breakouts as pressure builds from below with the higher and higher lows.
Volume: 7.093M Avg Volume: 4.311M
BUY POINT: $90.44 Volume=4.5M Target=$103.95 Stop=$86.38
POSITION: AGU JR - Oct. $90c (51 delta) or AGU GR - July $90c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/agu.html
Play Date: 06/03/2008
EQIX (Equinix--$96.76; +2.72; optionable): Telecom services
http://biz.yahoo.com/p/e/eqix.html
EARNINGS: Third week of July
STATUS: Cup w/handle. Volume is picking up on some solid upside sessions as EQIX starts the breakout from its 7 month base. Broke higher lat week, tested quickly, and Tuesday started back up on strong trade. Nice test and looks as if EQIX is going to give us a good buy this time around. Strong money flow is leading higher and price is ready to fall.
Volume: 1.106M Avg Volume: 1.074M
BUY POINT: $97.55 Volume=1.6M Target=$112.95 Stop=$92.45
POSITION: FQS IS - Sept. $95c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/eqix.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: Pausing over the 10 day EMA after the rebound; still anticipating the second G iPhone and a move on that news.
BHI: Tentatively set for late July
CLB: A wildcard with no splits. Tentatively set for July
COP: Forecast July
CW: Tentatively set for third week of July
ETN: Researching date
GD: Forecast July. Still testing the 18 day EMA
GGB: Researching date. Nice lateral test after the surge higher
GILD: Researching date
HES: Forecast July
IBM: Nice rebound off the 18 day EMA this week
JEC: Mid-July
JOYG: Strong results gapped JOYG higher
MICC: Forecast third week of July
MTRX: Forecast early July
RIG: Testing back to the 50 day EMA again.
RS: Mid-July
SCHN: Researching date
TMO: Tentatively set for July
VMI: Mid-July
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 06/03/2008
PX (Praxair--$95.43; +1.84; optionable): Synthetic chemicals
http://biz.yahoo.com/p/p/px.html
EARNINGS: Third week of July
STATUS: Ascending base. Volume is picking up on the upside sessions, moving above average Tuesday as PX made a higher low and moved up to the top of its 6 week pattern formed on top of a 5 month cup base. Strong money flow leading higher, and PX is ready to follow it to a new high as well.
Volume: 2.016M Avg Volume: 1.941M
BUY POINT: $96.12 Volume=2.9M Target=$109.95 Stop=$93.12
POSITION: PX JS - Oct. $95c (56 delta, 218 OI) &/or Stock
http://www.investmenthouse.com/ci/px.html
Play Date: 06/03/2008
WDR (Waddell & Reed--$36.02; +0.96; optionable): Investment brokerage
http://biz.yahoo.com/p/w/wdr.html
EARNINGS: Third week of July
STATUS: Cup. WDR is working on a volatile but solid 6 month base, the last five weeks forming a double bottom with handle. Great volume Friday and Tuesday on the upside sessions, indicating heavy buying. Another stock showing strong money flow leading it toward a breakout and a new high.
Volume: 1.269M Avg Volume: 1.162M
BUY POINT: $36.31 Volume=1.4M Target=$42.45 Stop=$34.48
POSITION: WDR IG - Sept. $35c (59 delta, 179 OI) &/or Stock
http://www.investmenthouse.com/ci/wdr.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 05/31/2008
MBT (Mobile Telesys--$85.48; -1.60; optionable): Russian wireless telecom
http://biz.yahoo.com/p/m/mbt.html
EARNINGS: Announced 5-20-08
STATUS: Cup with handle. Tested a bit lower Tuesday, tapping the 18 day EMA on the low and rebounding modestly. Low volume so still a nice shakeout in the handle, setting the move higher. To recap: After an excellent run in 2007 that needed a consolidation, MBT has formed an excellent base this year. It rallied higher starting mid-May with its earnings, forming the right side of its 5 month base. The past week it has slid laterally, waiting for the 10 day EMA (85.78) to catch up with it as volume slipped as well. Nice, nice shakeout/consolidation of the May run, setting up the breakout and run toward the prior high at 105. Nice setup from an excellent stock.
Volume: 1.051M Avg Volume: 1.766M
BUY POINT: $89.32 Volume=2.8M Target=$104.95 Stop=$85.66
POSITION: MBT IR - Sept. $90c (46 delta) &/or Stock
http://www.investmenthouse.com/ci/mbt.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 05/31/2008
BRCM (Broadcom--$27.50; -0.58; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
EARNINGS: Announced 4-22-08
STATUS: Trend reversal. Testing back to the 200 day SMA still,, holding that on the Tuesday close. Full test, and in position to bounce higher. To recap: Looking at BRCM again as it has set up again after its late April gap higher on earnings, moving back over the 200 day SMA (27.44) Friday. The catalyst was MRVL in the same sector with its outlook for the future. Strong volume, solid move over a key level. BRCM has a nice range to run higher without resistance, and there is that gap lower from October that it will eventually fill. Cool. Ready to move in as BRCM clears the early May high.
Volume: 13.397M Avg Volume: 15.076M
BUY POINT: $28.88 Volume=20M Target=$37.22 Stop=$27.31
POSITION: RCQ HY - Aug. $27.50c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.html
Play Date: 05/31/2008
INFY (Infosys Technologies--$46.77; -1.00; optionable): Technical software
http://biz.yahoo.com/p/i/infy.html
EARNINGS: Mid-July
STATUS: Trend reversal. Nice test of the 10 day EMA Tuesday. Though volume was higher, INFY is still in great shape to hold and then resume the breakout move in its reversal. To recap: After a 14.5 month downtrend INFY reversed off the lows in April, moving through the 200 day SMA (43.25) in May but then range trading through Friday. Friday INFY gapped higher on huge trade, surging through the close. Nice break over the 200 day SMA, good test, and now the next leg is on. Ready to move in as INFY continues this run.
Volume: 5.133M Avg Volume: 3.446M
BUY POINT: $48.14 Volume=3.8M Target=$59.55 Stop=$47.11
POSITION: IUN JJ - Oct. $50c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/infy.html
Play Date: 05/23/2008
EMR (Emerson Electric--$57.15; -0.36; optionable): Industrial equipment and components
http://biz.yahoo.com/p/e/emr.html
EARNINGS: 5-6-08
STATUS: Cup w/handle. Tapping the 18 day EMA on the Tuesday low and rebounding modestly to the 10 day EMA. Very good test and set to make the next move up on that strong volume we saw Friday. To recap: EMR faded back last week to near support at the 18 day EMA, tapping that level on the Friday low on low, below average volume. That lower trade shows no selling on the pullback. Great shakeout in the 6 month base as it forms the handle, setting up the move to a new all-time high. Excellent action in a weak market, using it to its advantage to set up the breakout for us.
Volume: 3.234M Avg Volume: 3.82M
BUY POINT: On a continued move from the Friday close (orig. $56.88) Volume=6M Target=$66.75 Stop=$55.42
POSITION: EMR IK - Sept. $55c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/emr.html
CONTINUING LEADER PLAYS:
Play Date: 05/29/2008
NUVA (Nuvasive--$41.41; -0.51; optionable): Medical instruments
http://biz.yahoo.com/p/n/nuva.html
EARNINGS: Announced 4-22-08
STATUS: Reverse head and shoulders. Excellent test underway, tapping the 18 day EMA on the Tuesday low and then rebounding to hold the 10 day EMA on the close. Great low volume shakeout and still in great position to make the break higher. To recap: Looking at NUVA again as it breaks higher on strong, above average volume, clearing the April and May highs in its 7.5 month base. Very strong, very solid, moving in on a new all-time high. Very nice.
Volume: 329.205K Avg Volume: 582.245K
BUY POINT: $42.74 Volume=600K Target=$49.45 Stop=$40.05
POSITION: QNU IH - Sept. $40c (68 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/nuva.html
Play Date: 05/31/2008
PCLN (Priceline.com--$132.77; +0.01; optionable): Online travel, hotels, etc.
http://biz.yahoo.com/p/p/pcln.html
EARNINGS: Announced 5-8-08
STATUS: Ascending base. Another couple of low volume lateral sessions this week, testing lower intraday then recovering to hold the 10 day EMA at the close. Very nice quiet action during the market selling indicating the stock is sold out and ready to move higher. To recap: PCLN is volatile; gapped higher in early May then sold off to fill the gap a week later. It held the 50 day EMA (127.23), the rising support of the 5 month pattern. Friday volume jumped above average for the first time in two weeks as PCLN posted a modest gain. Looks as if money is moving into PCLN and some were getting a jump start on the new month. Ready to move in as PCLNE breaks higher on continued solid trade.
Volume: 895.855K Avg Volume: 1.426M
BUY POINT: $136.21 Volume=2M Target=$156.95 Stop=$131.25
POSITION: PNE GG - July $135c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/pcln.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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