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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 06/18/2008
AMZN (Amazon.com--$82.52; -0.45; optionable): Online retail
http://biz.yahoo.com/p/a/amzn.html
EARNINGS: 7-23-08
STATUS: Test 200 day SMA. Taking another crack at AMZN as it continues to work higher in an ascending base the past 10 weeks that is part of a larger 6 month pattern. Broke higher through the 200 day SMA (81.34) on Monday, showing strong volume as it gapped higher Tuesday. Tested back to the 200 day SMA on the Wednesday low and rebounded, filling the Tuesday gap. Strong money flow continues leading higher. Looking for AMZN to bounce up off this level on some more strong volume and give us an entry point.
Volume: 6.848M Avg Volume: 7.854M
BUY POINT: $83.31 Volume=10M Target=$95.94 Stop=$81.11
POSITION: ZQN JP - Oct. $80c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/amzn.html
Play Date: 06/18/2008
CSX (CSX Corp.--$64.21; +0.84; optionable): Railroads
http://biz.yahoo.com/p/c/csx.html
EARNINGS: 7-15-08
STATUS: Test 50 day EMA. CSX made us a lot of money on its March to May run, peaking at the end of May. It gapped lower on strong volume as the rails came under selling pressure after the run. The selling slowed and CSX started to work laterally and modestly lower, coming back to the 50 day EMA (63.19). Strong volume last week as it sold to this level but held; high volume at the 50 day EMA is not necessarily a bad thing as it shows the stock's supporters stepping up to the plate. It held and moved laterally for a week, showing a very big volume spike Wednesday as CSX bounced higher to test the 18 day EMA (65.37) before fading. Money flow has held tough. Looking for CSX to steam back up through the 18 day EMA and give us a buy.
Volume: 9.749M Avg Volume: 5.324M
BUY POINT: $65.48 Volume=8M Target=$75.45 Stop=$62.92
POSITION: CSX KM - Nov. $65c (50 delta) &/or Stock
http://www.investmenthouse.com/ci/csx.html
Play Date: 06/18/2008
ERES (Eresearch Tech--$16.59; -0.21; optionable): Medical labs
http://biz.yahoo.com/p/e/eres.html
EARNINGS: Early August
STATUS: Ascending base test. ERES broke sharply higher Monday on strong volume, clearing a short 7 week ascending base that used the 18 day EMA as support. This short base is consolidating the May breakout from a 7 month base. Nice new consolidation that held the gains and set up the next move higher. Low volume as ERES tested back Tuesday and Wednesday. It may come all the way back to the 10 day EMA (16.18) before moving back up. Either way we are looking to move in as ERES makes the next bounce higher. Great stock and you have to like how it moved up as the market sold off.
Volume: 388.773K Avg Volume: 585.189K
BUY POINT: $16.72 Volume=850K Target=$19.98 Stop=$15.89
POSITION: UDB IC - Sept. $15c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/eres.html
Downside:
Play Date: 06/18/2008
EAT (Brinker Intl.--$19.13; -0.59; optionable): Chili's, On the Border, Romano's Macaroni Grill
http://biz.yahoo.com/p/e/eat.html
EARNINGS: 8-5-08
STATUS: Put. Very similar to the action in DJ30, EAT rallied higher through April, peaked in May, then started selling off on rising volume. It bounced back up to the 200 day SMA (21.67) to start June but failed at that key level, rolling over on very high volume. It tried to hold some support at the 90 day SMA and 19.50, but Thursday EAT got stomach cramps and broke lower on rising volume. Looking for a move down toward the March lows at 16.50ish. A move to the target lands a 47%ish gain.
Volume: 1.333M Avg Volume: 1.417M
BUY POINT: $18.97 Volume=1.5M Target=$17.45 Stop=$19.31
POSITION: EAT SD - July $20p (-49 delta)
http://www.investmenthouse.com/ci/eat.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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us stock market
stock recommendation
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