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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: 11/17/2009
BLKB (Blackbaud--$22.00; 0.00; optionable): Business software
http://biz.yahoo.com/p/b/blkb.html
After Hours: $22.00
EARNINGS: 10/28/2009
STATUS: Pennant. BLKB has made us some great money on its runs since summertime. After a strong surge in September that was basically vertical BLKB has consolidated laterally the past 9 weeks. The surge vertical formed the flagpole you like to see. Now BLKB is testing, and as it does it is holding around the 50 day EMA (21.94) and has put in a couple of bottoms at the Fibonacci 61% retracement level. Looking for BLKB to hold this level and then make the next break higher. A good move that can hold into the close is our entry as we look for BLKB to break through the prior peak and move to the 127% extension at 26.
VIDEO: http://investmenthouse1.com/ihmedia/BLKB.wmv
Volume: 91.136K Avg Volume: 236.212K
BUY POINT: $22.28 Volume=300K Target=$25.95 Stop=$20.97
POSITION: QDO CD - Mar. $20c (65 delta, wide sprd) &/or Stock
http://www.investmenthouse.com/ci/blkb.html

Play Date: 11/17/2009
CRNT (Ceragon Networks--$9.53; +0.12; optionable): Telecom equipment
http://biz.yahoo.com/p/c/crnt.html
EARNINGS: 10/26/2009
STATUS: Big surge early to mid-October set up a 4 week pennant. CRNT tested back in late October, bounced off the 50 day EMA (9) to start November, and has since worked laterally in a narrow range as the 50 day rises to once again meet up with the stock. Looking for CRNT to make a higher low in this lateral range and as it breaks upside that is when we move in.
VIDEO: http://investmenthouse1.com/ihmedia/CRNT.wmv
Volume: 75.042K Avg Volume: 256.933K
BUY POINT: $9.69 Volume=300K Target=$11.32 Stop=$9.01
POSITION: QMC CU - Mar. $7.50c (75 delta) &/or Stock
http://www.investmenthouse.com/ci/crnt.html

Play Date: 11/17/2009
MDT (Medtronic--$40.20; +0.12; optionable): Medical appliances
http://biz.yahoo.com/p/m/mdt.html
After Hours: $40.20
EARNINGS: 11/24/2009
STATUS: Flag. After a 2 month pullback to test the July to early September run MDT blasted higher to start November, surging from 36 to 40. The past week MDT has worked laterally and slightly lower, forming the flag to the flag pole, tapping the rising 10 day EMA (39.15) on the Tuesday low. After tapping that near support MDT jumped higher Tuesday, closing near the top of the recent range. Nice volume, moving back up to average, as MDT made the move. Looking for a continued break higher and that is when we move into this play. Resistance at 45 and that is our initial target where we will take at least part of the position off the table.
VIDEO: http://investmenthouse1.com/ihmedia/MDT.wmv
Volume: 6.696M Avg Volume: 6.649M
BUY POINT: $40.32 Volume=7M Target=$45.45 Stop=$38.28
POSITION: JIW BH - Feb. $40c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/mdt.html

Downside:

Play Date: 11/17/2009
JOYG (Joy Global--$56.85; -1.99; optionable): Farm and construction machinery
http://biz.yahoo.com/p/j/joyg.html
After Hours: $58.84
EARNINGS: 12/16/2009
STATUS: Double top. JOYG was showing an upside trade after hours but that looks to be an aberration; we will see in the morning. The pattern, however, is interesting. A surge in late October then an intraday reversal and selloff. It has recovered this month, moving back up to that prior peak. Monday JOYG gapped higher, closing at a new high. Tuesday JOYG gapped lower on even stronger volume as it was downgraded. JOYG bounced back from its session low but still closed negative. That is an island reversal with JOYG getting shoved back down just after breaking to a new rally high. Looking to move in as JOYG continues lower. If it has tapped out this move we have a nice run to the 50 day EMA (50.80) that lands us a 50%ish gain. If it does not pan out and continues upside we have a good stop loss point and a good risk/reward on the play.
VIDEO: http://investmenthouse1.com/ihmedia/JOYG.wmv
Volume: 4.097M Avg Volume: 3.62M
BUY POINT: $56.65 Volume=4.5M Target=$51.05 Stop=$58.11
POSITION: JQY ML - Jan. $60p (-65 delta)
http://www.investmenthouse.com/ci/joyg.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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