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Begin part 3 of 3

THE PLAYS:

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NEW FEATURE: Each play contains an additional link to a VIDEO that discusses the play in terms of the CHART PATTERN it is currently showing. Patterns, buy points, and targets are discussed along with other points that make the play a good one as well as what areas to watch for. We hope you enjoy this new addition.
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Upside:

Play Date: 11/09/2009
IOC (Interoil Corp.--$47.45; +0.89; optionable): Oil and gas refining & marketing
http://biz.yahoo.com/p/i/ioc.html
EARNINGS: 11/04/2009
STATUS: Test 38% retracement. IOC broke out from a 4 month cup with handle base in mid-September, held the test, and rallied sharply through mid-October. It has sold back the past three weeks, coming back and holding at the 38% Fibonacci retracement. Nice hold at near support and looking for IOC to continue the run higher off of this test. Nice thing is, it doesn't have to break new ground to make us a nice gain. Of course we also look for a break higher and move on to the 127% extension up at 61.90.
VIDEO: http://investmenthouse1.com/ihmedia/IOC.wmv
Volume: 447.079K Avg Volume: 712.786K
BUY POINT: $47.77 Volume=1M Target=$54.95 Stop=$44.43
POSITION: IOC AI - Jan. $45c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/ioc.html

Play Date: 11/09/2009
PIR (Pier 1 Imports--$3.92; +0.31; no options): Home furnishing stores
http://biz.yahoo.com/p/p/pir.html
After Hours: $3.92
EARNINGS: 12/17/2009
STATUS: Test 50 day EMA. PIR is in recovery mode. It broke higher from a 5 month base in mid-September on earnings and has stair-stepped higher through mid-October. It then sold back in the selling but has held support in the 50 day EMA (3.56) range. PIR worked laterally for two weeks and on Monday gapped higher out of the range on rising though still below average volume. If it can continue the move we will look at picking up some stock positions and riding them up to the October high at 5.25ish.
VIDEO: http://investmenthouse1.com/ihmedia/PIR.wmv
Volume: 2.328M Avg Volume: 2.631M
BUY POINT: $4.05 Volume=3.2M Target=$5.25 Stop=$3.77
POSITION: - Stock (option spread too wide)
http://www.investmenthouse.com/ci/pir.html

Play Date: 11/09/2009
ZMH (Zimmer Holdings--$54.94; +1.17; optionable): Medical appliances (mechanical knees, joints, etc.)
http://biz.yahoo.com/p/z/zmh.html
After Hours: $54.53
EARNINGS: 10/22/2009
STATUS: Ascending triangle. ZMH broke out in August and rallied nicely to the end of September. It needed a rest and fell into the current base, a 5 week pattern, making higher lows above the rising 50 day EMA (51.59). It made a higher low at the 18 day EMA (53.31) last week and is on the move toward the breakout. If ZMH gives the breakout here we will enter some positions and see how it tests that move to add more. If it comes back to test again and make another higher low we can look to pick up some shares as it comes off of that test in preparation for the breakout move.
VIDEO: http://investmenthouse1.com/ihmedia/ZMH.wmv
Volume: 1.143M Avg Volume: 2.298M
BUY POINT: $55.12 Volume=3.4M Target=$63.95 Stop=$53.18
POSITION: ZMH AK - Jan. $55c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/zmh.html

Downside:

Play Date: 11/09/2009
MON (Monsanto--$70.00; +0.86; optionable): Ag chemicals
http://biz.yahoo.com/p/m/mon.html
After Hours: $70.00
EARNINGS: 01/06/2010
STATUS: Bear flag. MON broke some important support to end October just over 70, a level that it held many times over the past year. Sold on hard volume and then bounced this month, tapping at the resistance and 10 day EMA (69.95) on Friday and then showing a hanging man doji at that level. Low volume on the climb with a volume jump up to average Monday as it spun its wheels. Looking for a turn back down from here. A move to the target lands a 55%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/MON.wmv
Volume: 7.383M Avg Volume: 6.465M
BUY POINT: $69.71 Volume=8.2M Target=$64.65 Stop=$70.48
POSITION: MON MN - Jan. $70p (-50 delta)
http://www.investmenthouse.com/ci/mon.html

Play Date: 11/09/2009
RS (Reliance Steel--$40.05; +1.17; optionable): Steel fabrication
http://biz.yahoo.com/p/r/rs.html
After Hours: $40.27
EARNINGS: 10/22/2009
STATUS: RS is range bound the past 7 months. It bounced to start the month following some sharp selling from mid-October. It has bounced decently, but volume has dwindled as it has rallied back. Friday and Monday RS bumped into resistance at 40 and is stalling, closing well off the intraday highs both sessions. Looking for a rollover at this level to take it back down to support in the 34 range. A move to the initial target lands a 40%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/RS.wmv
Volume: 704.136K Avg Volume: 1.13M
BUY POINT: $39.54 Volume=1.2M Target=$35.48 Stop=$40.81
POSITION: RS OH - Mar. $40p (-50 delta)
http://www.investmenthouse.com/ci/rs.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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