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Begin part 3 of 3

THE PLAYS:

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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:

New Post-Split Plays:

Play Date: 01/27/2010
ATW (Atwood Oceanics--$34.83; +0.42; optionable): Oil and gas offshore drilling services
http://biz.yahoo.com/p/a/atw.html
After Hours: $34.80
EARNINGS: 02/03/2010
STATUS: Rolling. ATW has spent the past four months rolling up and down in a pretty well defined range; about as well-defined as you are going to get. Last week ATW fell to the bottom of the range and has moved laterally reaching lower intraday and then rebounding off those lows to hold the range. That shows buyers are stepping in. Looking to move in as ATW continues higher off of this bottom of the range for a ride up to the top of the range at 40, and then we see if it can make the breakout and continue to the upside.
VIDEO: http://investmenthouse1.com/ihmedia/ATW.wmv
Volume: 692.822K Avg Volume: 1.008M
BUY POINT: $35.04 Volume=1.2M Target=$40.00 Stop=$33.48
POSITION: ATW FG - June $35c (56 delta) &/or Stock

Play Date: 01/27/2010
GLW (Corning--$19.14; +0.49; optionable): Glass, flat-screens
http://biz.yahoo.com/p/g/glw.html
After Hours: $19.10
EARNINGS: 01/26/2010
STATUS: Test 50 day EMA/ABCD. We are back looking at GLW once more and looking for another nice run from it to stack in some more cash for the winter (or that new boat at the boat show, right?). Strong run from November to early January made us some great money, then GLW gapped but could not extend the move. An exhaustion gap. It has come back to test the 50 day EMA, but note how it has stair-stepped back as it has sold. That has set up the ABCD pattern that fools many into thinking the stock has made lower lows and is ready to sell off. It has held key support, however, showing a hammer doji Tuesday and bouncing Wednesday on solid trade. Earnings were just released and it was not taken to the cleaners. We are looking for a move higher form here to give us the buy for the next run higher.
VIDEO: http://investmenthouse1.com/ihmedia/GLW.wmv
Volume: 17.645M Avg Volume: 14.337M
BUY POINT: $19.39 Volume=20M Target=$23.44 Stop=$18.03
POSITION: GLW ER - May $18c (62 delta) &/or Stock

Leader Plays:

Play Date: 01/27/2010
ASH (Ashland--$42.84; +0.01; optionable): Chemicals
http://biz.yahoo.com/p/a/ash.html
After Hours: $42.84
EARNINGS: 01/26/2010
STATUS: Triangle. ASH is back in gear. It set up a 5 month triangle but could not make a breakout. Not until Tuesday when it gapped higher on stronger earnings, clearing the January highs. Wednesday it side-stepped, but if it can continue we are ready to move in and see what ASH can do.
VIDEO: http://investmenthouse1.com/ihmedia/ASH.wmv
Volume: 1.709M Avg Volume: 1.225M
BUY POINT: $43.03 Volume=1.5M Target=$49.89 Stop=$40.02
POSITION: ASH DH - Apr. $40c (59 delta) &/or Stock

Play Date: 01/27/2010
XRTX (Xyratex Ltd.--$15.16; -0.10; optionable): PC data storage devices
http://biz.yahoo.com/p/x/xrtx.html
EARNINGS: 01/12/2010
STATUS: ABCD. XRTX is in great shape to make us some more money on this run. It broke out of a triangle in mid-December and rallied to over 17. Strong volume as it made that move, bolstered in early January by earnings. It is now testing, and it is setting up one of our favorite patterns, the ABCD. Wednesday XRTX showed a hammer doji with tail, reaching lower then rebounding on volume to hold support. Looking for a move higher that can hold into the last hour to give us the buy. Nice setup.
VIDEO: http://investmenthouse1.com/ihmedia/XRTX.wmv
Volume: 346.876K Avg Volume: 350.065K
BUY POINT: $15.48 Volume=450K Target=$19.38 Stop=$14.40
POSITION: TQR FC - June $15c (57 delta) &/or Stock

Downside:

Play Date: 01/27/2010
LH (Laboratory Corp.--$72.19; -0.99; optionable): Medical labs
http://biz.yahoo.com/p/l/lh.html
After Hours: $72.15
EARNINGS: 02/11/2010
STATUS: Bear flag. Nice run from October through January, but LH started to get choppy this year. It fell back to the 50 day EMA to start off, but that was okay as it made a higher low, continuing its trend. It made a new rally high shortly thereafter, but immediately fell back. It broke below the 50 day EMA and that prior low, making its first lower low since September. After that selloff last Friday LH found support at 72 and has worked laterally the past three sessions. Wednesday, however, LH broke lower on rising volume. Note how MACD made a lower high even as LH made a higher high on that last run here in January; a divergent top showing weakness. This Wednesday break lower on stronger trade indicates LH is ready to sell down in another leg. Looking for a move down toward its 200 day SMA. That move lands a 45%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/LH.wmv
Volume: 1.479M Avg Volume: 880.976K
BUY POINT: $71.93 Volume=1.3M Target=$68.88 Stop=$73.98
POSITION: LH OO - Mar. $75p (-63 delta)

Play Date: 01/27/2010
RIG (Transocean--$87.29; -0.05; optionable): Offshore drilling services
http://biz.yahoo.com/p/r/rig.html
After Hours: $87.70
EARNINGS: 02/24/2010
STATUS: Double top. RIG is one of those that can go either way but we feel the bias may be downside. We will see; if it gives us the move we will take it. If not, we can look the other way as well. That is the way you have to look at situations such as this one where the market is trying to hold and bounce after getting rocked pretty hard a week ago. RIG has formed something of a double top spanning October and January. It has rolled back the past three weeks, falling below the 50 day EMA and then moving laterally the past three sessions. Now you can make the argument this is a small ABCD pattern and you could be correct. We are simply watching to see which way RIG breaks. If it does fall below the D point then we are looking for the move downside toward the target near the 200 day SMA at 80. Want to see RIG head lower and hold the move in the last hour to get us to enter. A move to the target lands a 45%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/RIG.wmv
Volume: 4.029M Avg Volume: 4.155M
BUY POINT: $86.78 Volume=5M Target=$81.57 Stop=$88.89
POSITION: RIG OR - Mar. $90p (-55 delta)

Good Investing!
Jon L. Johnson and the Stock Split Report Staff.

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 of 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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