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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: 11/12/2009
BBY (Best Buy--$41.84; -0.41; optionable): Electronics retail stores
http://biz.yahoo.com/p/b/bby.html
After Hours: $41.84
EARNINGS: 12/15/2009
STATUS: Ascending triangle. BBY is flexing a bit before the Christm er, winter holiday season. It broke out from a 13 week triangle Monday, not making a further pullback as we would have liked. Okay, so we waited and now it is giving us the test back toward the breakout point at 41.28. May come back a bit more toward that level before turning back up; there was some increasing downside volume Thursday. If it does we play it off that level. If it breaks higher from here we can go ahead and move in.
VIDEO: http://investmenthouse1.com/ihmedia/BBY.wmv
Volume: 5.616M Avg Volume: 6.04M
BUY POINT: $41.91 Volume=7M Target=$47.95 Stop=$40.11
POSITION: BYY AH - Jan. $40c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/bby.html

Play Date: 11/12/2009
CPST (Capstone Turbine--$1.13; -0.03; no options): Industrial electrical equipment
http://biz.yahoo.com/p/c/cpst.html
After Hours: $1.14
EARNINGS: 11/09/2009
STATUS: ABCD. CPST bottomed in March along with the rest of the market and has rallied similarly. CPST peaked in early September, however, and has stair-stepped lower into this week. That action has set up an 11 week ABCD pattern. CPST is in the process of trying to finish the D point, bouncing to start November but then coming back this week to test that level once more. Looking for a solid break higher off this level to show us the D point is in place and that we can move into positions.
VIDEO: http://investmenthouse1.com/ihmedia/CPST.wmv
Volume: 1.469M Avg Volume: 3.76M
BUY POINT: $1.21 Volume=4.5M Target=$1.55 Stop=$1.05
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/cpst.html

Play Date: 11/12/2009
DD (DuPont--$33.87; -0.24; optionable): Chemicals
http://biz.yahoo.com/p/d/dd.html
After Hours: $33.87
EARNINGS: 01/26/2010
STATUS: Ascending triangle. Nicely formed 10 week base with the classic rising lows below a constant top. That builds pressure from below as the buyers step in earlier and earlier on each dip, not letting it fall as far back. Thus when these patterns go, they usually go strong. DD is bumping up against resistance and may try to come back a bit toward 33. That is find, but after BBY blasted higher on us without a test we want to be ready.
VIDEO: http://investmenthouse1.com/ihmedia/DD.wmv
Volume: 7.883M Avg Volume: 6.845M
BUY POINT: $34.68 Volume=8.5M Target=$39.91 Stop=$32.31
POSITION: DXT AD - Jan. $32c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/dd.html

Downside:

Play Date: 11/12/2009
JDAS (JDA Software Group--$23.93; +0.05; optionable): Business software
http://biz.yahoo.com/p/j/jdas.html
After Hours: $23.93
EARNINGS: 07/20/2009
STATUS: Rolling. JDAS has a very well defined rolling range the past 8 weeks, travelling from 20 to 24 and then back again. This occurred after the July gap higher that put JDAS in a higher orbit so to speak. If JDAS breaks lower again, a move that would be aided by an overall market pullback, it presents a good downside range to give us a trade. Thus on a break lower that holds we will look to move into the play. A run to the target lands a 75%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/JDAS.wmv
Volume: 611.757K Avg Volume: 379.205K
BUY POINT: $23.68 Volume=450K Target=$20.11 Stop=$24.32
POSITION: QAH ME - Jan. $25p (-50 delta)
http://www.investmenthouse.com/ci/jdas.html

Play Date: 11/12/2009
RIMM (Research in Motion--$62.98; -1.73; optionable)
http://biz.yahoo.com/p/r/rimm.html
After Hours: $63.01
EARNINGS: 12/17/2009
STATUS: RIMM gapped nastily lower in late September on a disappointing outlook. Tried to hold up but then sold off with the rest of the market to end October. It moved into the April gap range but then recovered. RIMM rallied up to the 200 day SMA (65.93) this week, a level coincident with the July low. Plenty of resistance at that level. Thursday RIMM turned back down though volume was quite low. If it can continue downside and the market weakens further RIMM could try and fill that April gap down to 50. Our initial target is not that ambitious, but we would keep part of the position on the table to see if it would. A move to the initial target lands a 55%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/RIMM.wmv
Volume: 14.617M Avg Volume: 17.732M
BUY POINT: $62.66 Volume=22M Target=$55.45 Stop=$66.04
POSITION: RFY MM - Jan. $65p (-52 delta)
http://www.investmenthouse.com/ci/rimm.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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