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us stock market, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
Play Date: 07/16/2008
CVD (Covance--$86.06; +0.82; optionable): Early and late stage drug development services
http://biz.yahoo.com/p/c/cvd.html
EARNINGS: 7-30-08
STATUS: Cup w/handle. After an excellent run up the 50 day EMA in 2007 CVD needed a break and this current 7 month base is working out the excess, setting the foundation for a new run higher. Jumped higher in late June and then used he market selling to move laterally over the 200 day SMA (83.93) on low volume forming the handle to its base and ready to make the break higher. Nice setup. Just waiting for the break higher on volume to show us the buy signal.
Volume: 401.002K Avg Volume: 607.809K
BUY POINT: $86.68 Volume=912K Target=$97.65 Stop=$84.11
POSITION: CVQ KQ - Nov. $85c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/cvd.html
Play Date: 07/16/2008
ENER (Energy Conversion Devices--$71.21; +4.97; optionable): Solar semiconductors
http://biz.yahoo.com/p/e/ener.html
EARNINGS: 8-28-08
STATUS: Test 50 day EMA. After a breakout in early May from a 4.5 month base and a tremendous surge from 35 to over 90, rising up the 10 day EMA (68.11) all the way, ENER needed a rest. It tumbled back in the market selling, falling to support at the 50 day EMA (61.20) on mostly lower, below average volume. Very typical move after such a solid breakout and run up the short term MA. After a test to the 50 day, if it can hold and consolidate a bit a stock resumes the run. Making a higher low, clearing the early June peak, and breaking over 70 on some volume to kick off the new run. Looking to move in as ENER continues the move on even better trade.
Volume: 3.45M Avg Volume: 3.294M
BUY POINT: $71.42 Volume=3.6M Target=$80.95 Stop=$67.11
POSITION: EQI IN - Sept. $70c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/ener.html
Play Date: 07/16/2008
NSC (Norfolk Southern--$63.72; +2.86; optionable): Railroads
http://biz.yahoo.com/p/n/nsc.html
EARNINGS: 7-22-08
STATUS: Reverse head and shoulders. Strong volume the past two sessions as NSC showed a doji at the 90 day SMA (60.24) Tuesday then jumped higher Wednesday. Peaked in late May after a solid run from early April, forming the current 6 week accumulation pattern. That shows no heavy selling in the stock and indeed it is under accumulation even in this consolidation. Nice action and buying, and looking to move into positions as NSC continues its move higher.
Volume: 4.737M Avg Volume: 3.765M
BUY POINT: $63.94 Volume=4.2M Target=$71.95 Stop=$61.31
POSITION: NSC IL - Sept. $60c (63 delta) or NSC LM - Dec. $65c (45 delta) &/or Stock
http://www.investmenthouse.com/ci/nsc.html
Downside:
Play Date: 07/16/2008
BUCY (Bucyrus International--$64.32; -0.35; optionable): Heavy mining machinery
http://biz.yahoo.com/p/b/bucy.html
EARNINGS: 7-24-08
STATUS: Head and shoulders. Broad top formed the past 10 weeks after a good April to May run finally overextended it. Sharp break lower to start July with most of the heavy machinery. Trying to bounce the past week, managing to make it up to the 50 day EMA (67.67) Monday and Tuesday but rolling over Tuesday. Held the 90 day SMA (64) Wednesday, but a weak pattern and just waiting for BUCY to break lower on some rising trade, showing us the sellers are back on it. A move to the target lands a 42%ish gain.
Volume: 1.716M Avg Volume: 2.403M
BUY POINT: $63.92 Volume=2.5M Target=$59.05 Stop=$65.91
POSITION: HBU TM - Aug. $65p (-51 delta)
http://www.investmenthouse.com/ci/bucy.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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