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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS: Looking at solid upside given the hard break lower. Will let market bounce for downside plays. These upside plays show stocks that weathered the selling beautifully.
Upside:
Play Date: 06/21/2008
DRQ (Dril-Quip--$61.88; -0.65; optionable): Oil and gas service company
http://biz.yahoo.com/p/d/drq.html
EARNINGS: Early August
STATUS: Ascending base. Nice 9 week base has formed, making a higher low the past week at the 18 day EMA (61.07). Part of a larger 8 month base, and with this nice low volume lateral move the past week, DRQ has consolidated and is ready to break higher.
Volume: 602.03K Avg Volume: 641.988K
BUY POINT: $63.88 Volume=963K Target=$73.45 Stop=$60.57
POSITION: DRQ IL - Sept. $60c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/drq.html
Play Date: 06/21/2008
FLR (Fluor Corp.--$191.55; +1.68; optionable): Heavy construction. Splits 2:1 on 7-17-08
http://biz.yahoo.com/p/f/flr.html
EARNINGS: Second week of August
STATUS: Flat base. FLR gapped higher mid-May on its earnings report, clearing a 6.5 month base. In the market selling it has come back to test that gap though not filling it all on last week's lows. Has rebounded and is in excellent position to give us a nice new breakout and entry point.
Volume: 1.373M Avg Volume: 1.674M
BUY POINT: $193.21 Volume=2.5M Target=$219.95 Stop=$187.45
POSITION: FLR HW - Aug. $190c (51 delta) or FLR JX - Oct. $195c (48 delta)
http://www.investmenthouse.com/ci/flr.html
Play Date: 06/21/2008
TRMB (Trimble Navigation--$36.72; +0.50; optionable): Positioning devices
http://biz.yahoo.com/p/t/trmb.html
EARNINGS: Late July
STATUS: Test 50 day EMA. TRMB was added to the SP400 at the Friday close and thus the surging volume. This is not just an index play. TRMB was a favorite play in 2007 as it ran higher. It got too high and needed to consolidate and base out for another run. It has done that with the current 8 month base. Good earnings numbers in April started it higher off the bottom of the pattern, and now TRMB is testing the 50 day EMA (34.82), showing good price action at that level. Looking for TRMB to give us a nice breakout from this pattern to give us the entry point.
Volume: 14.415M Avg Volume: 1.359M
BUY POINT: $37.08 Volume=2M Target=$42.95 Stop=$34.74
POSITION: TUH KG - Nov. $35c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/trmb.html
Play Date: 06/21/2008
V (Visa, Inc.--$83.57; -0.70; optionable): Financial payment processing
http://biz.yahoo.com/p/v/v.html
EARNINGS: Late July
STATUS: Ascending base. V bounced off the 50 day EMA just over a week back and is testing that move this week, coming back on below average volume to hold the 10 and 18 day EMA. Very nice orderly pullback setting up the next move higher. A new issue in May, this is V's first real base and it looks great.
Volume: 10.646M Avg Volume: 15.745M
BUY POINT: $85.05 Volume=20M Target=$97.95 Stop=$82.65
POSITION: V IQ - Sept. $85c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/v.html
Play Date: 06/21/2008
XTO (XTO Energy--$70.22; +0.08; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Third week of July
STATUS: Test breakout. We missed XTO as it broke higher last Wednesday, clearing a 9 week base on solid trade. Nice pattern that used the 50 day EMA (65.41) as support. Nice break higher, nice test, ready to move in as it makes the break higher after this test.
Volume: 6.354M Avg Volume: 6.518M
BUY POINT: $71.44 Volume=9M Target=$81.95 Stop=$68.91
POSITION: XTO KN - Nov. $70c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
New buy points on current positions:
Play Date: 06/21/2008
MOS (Mosaic Company--$152.72; +1.47; optionable): Agricultural chemicals
http://biz.yahoo.com/p/m/mos.html
EARNINGS: 7-29-08
STATUS: Breakout test. MOS is making the first test of the breakout two weeks back from a nice 8 week consolidation base. Sold hard Thursday but held the 10 day EMA and Friday it sold a bit more but then rebounded to hold above the 10 day EMA on strong, above average volume. Showing a doji on the candlestick chart, an indication that MOS is going to rebound and give us a new buy.
Volume: 9.247M Avg Volume: 6.939M
BUY POINT: $153.69 Volume=9M Target=$175.95 Stop=$147.35
POSITION: MTJ IJ - Sept. $150c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/mos.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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