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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 Play:

Play Date: 02/03/2010
KND (Kindred Healthcare--$17.18; -0.25; optionable): Long-term healthcare facilities
http://biz.yahoo.com/p/k/knd.html
After Hours: $17.43
EARNINGS: Last announced 11/02/2009. Has not confirmed this quarter's date.
STATUS: ABCD. Nice break higher in early December as KND cleared an 11 week base. Strong surge, setting up the X/A move that gets you looking for an ABCD pullback. KND has set that up over the past five weeks, stair-stepping back to form the D point the past week as it holds the September peak. Going to be patient and let KND show the break higher that can hold into the last hour/close and give us the entry point.
VIDEO: http://investmenthouse1.com/ihmedia/KND.wmv
Volume: 126.962K Avg Volume: 313.475K
BUY POINT: $17.68 Volume=450K Target=$23.38 Stop=$16.49
POSITION: KND 10E15.00 - May $15c (68 delta, low OI) &/or Stock

Downside: For new plays we are looking at downside given we have several solid upside plays to work with already.

Play Date: 02/03/2010
GS (Goldman Sachs--$157.23; +0.29; optionable)
http://biz.yahoo.com/p/g/gs.html
After Hours: $157.68
EARNINGS: 01/21/2010
STATUS: Bear flag. As the poster child for federal government angst against the financial institutions, GS has had a rough go the past four months. It was basing through early January, and it looked as if was breaking higher, but it reversed. GS sold very hard mid-January after earnings, landing at support at 150 on that selloff, undercutting the 200 day SMA as it fell. This week GS rebounded, tapping near the 200 day SMA on the Wednesday high before backing off and showing a tombstone doji. That move took GS back up to the December double bottom at 160 as well as the 38% Fibonacci retracement of the January selloff. The doji at that level suggests GS is going to sell again. Of course market direction will influence GS greatly, but if it gaps lower from this Wednesday gap higher to a doji then we are looking to play it to the downside. Our initial target is the prior January low at 149ish; that lands a 42%ish gain. As a 38% Fibonacci retracement, it should move on down to the 127% extension and that is down at to the 139 level and a very large gain indeed.
VIDEO: http://investmenthouse1.com/ihmedia/GS.wmv
Volume: 16.79M Avg Volume: 10.385M
BUY POINT: $156.73 Volume=16M Target=$149.32 Stop=$161.22
POSITION: GS 10P160.00 - Mar. $160p (-52 delta)

Play Date: 02/03/2010
ICE (Intercontinental Exchange--$99.81; +0.77; optionable)
http://biz.yahoo.com/p/i/ice.html
After Hours: $99.86
EARNINGS: 02/10/2010
STATUS: Bear flag. ICE melted down in mid-January, breaking through the bottom of a 2.5 month consolidation. It broke higher from an ascending triangle in late January and then that move failed. It bounced through mid-January, but then rolled back over after failing to make a new breakout move. Tanked down to 95 where there is support. Bounced the past week up to the 200 day SMA (100.53). Wednesday ICE traded over that level intraday, then reversed to close below it, showing an evening star doji. If it gaps modestly lower Thursday we want to move into downside positions for a test back down to the prior low on this selling. That lands a 42%ish gain. As the bounce tapped the 38% Fibonacci retracement on the move the doji is enough to enter on. Further, after making it to the prior low ICE should sell on down to 88, adding a nice boost to the bottom line. Thus we take partial profits at the initial target and let the rest run.
VIDEO: http://investmenthouse1.com/ihmedia/ICE.wmv
Volume: 970.679K Avg Volume: 969.941K
BUY POINT: $99.48 Volume=1.4M Target=$94.65 Stop=$101.91
POSITION: ICE 10O100.00 - Mar. $100p (-48 delta)

Play Date: 02/03/2010
QID (QQQ Proshares UltraShort ETF--$20.45; -0.24; optionable)
After Hours: $20.33
STATUS: This is the upside play for shorting the QQQQ. QID has faded the past three sessions as QQQQ rebounded. QID is at support as QQQQ hits resistance. CSCO helped the techs after hours, but if the buzz wears off we look for NASDAQ to roll back down from resistance and give us this play. A move to the initial target lands a 55%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/QID.wmv
Volume: 18.669M Avg Volume: 15.131M
BUY POINT: $20.53 Volume=20M Target=$22.39 Stop=$20.12
POSITION: QID 10D20.00 - Apr. $20c (57 delta) &/or Stock

Play Date: 02/03/2010
SDS (UltraShort S&P500 ETF--$35.82; +0.34; optionable)
After Hours: $35.66
STATUS: Similar to QID, this is the upside play for shorting SP500. With SP500 at resistance we want to be ready for a possible move lower from here; it can always continue higher off of the Wednesday harami and make that higher test, but if it does make the turn lower we are interested in playing that move, using this upside vehicle to do it. A move to the target lands a 38%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/SDS.wmv
Volume: 31.862M Avg Volume: 31.749M
BUY POINT: $36.02 Volume=42M Target=$37.78 Stop=$35.32
POSITION: SDS 10C35.00 - Mar. $35c (52 delta)

FOR THURSDAY: We are looking at the following current plays Thursday as they are set up very well:

Upside:

IPAR
VIDEO: http://investmenthouse1.com/ihmedia/IPAR.wmv

JAZZ
VIDEO: http://investmenthouse1.com/ihmedia/JAZZ.wmv

PLXS
VIDEO: http://investmenthouse1.com/ihmedia/PLXS.wmv

Downside:

BUCY
VIDEO: http://investmenthouse1.com/ihmedia/BUCY.wmv

EEM
VIDEO: http://investmenthouse1.com/ihmedia/EEM.wmv

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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