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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: 02/10/2010
ILMN (Illumina--$35.59; -0.24; optionable): Biotechnology
http://biz.yahoo.com/p/i/ilmn.html
After Hours: $35.59
EARNINGS: 02/04/2010
STATUS: ABCD. Great surge in early January has set up this play as ILMN recovered from the sharp October through November selloff. Over the past four weeks ILMN has set up a nice ABCD pattern that consolidates the strong surge higher and sets up the next move as it shakes out the less committed holders. Nice test of the 50 day EMA last Friday set the D point, and now all we have to look for is the break higher that holds the move to the close. Very solid setup, but we need to make sure it shows us the break higher.
VIDEO: http://investmenthouse1.com/ihmedia/ILMN.wmv
Volume: 1.103M Avg Volume: 3.231M
BUY POINT: $36.08 Volume=4M Target=$40.97 Stop=$34.11
POSITION: ILMN 10F35.00 - June $35c (52 delta) &/or Stock

Play Date: 02/10/2010
RMD (Resmed--$54.28; +0.01; optionable): Medical appliances
http://biz.yahoo.com/p/r/rmd.html
After Hours: $54.29
EARNINGS: 02/04/2010
STATUS: Gap test. RMD announced earnings last week and the announcement gapped it higher, clearing the December/January consolidation and moving to a new all-time high. Modest fade this week, but holding the breakout gap and showing a nice tight doji Wednesday on low, low volume. That signals it is in place to make the move to continue the gap; just waiting for it to make that move. Gaps through serious resistance tend to continue in the same direction of the gap. Combine that with a strong leadership stock and you have a solid combination.
VIDEO: http://investmenthouse1.com/ihmedia/RMD.wmv
Volume: 343.818K Avg Volume: 570.732K
BUY POINT: $54.48 Volume=6.2M Target=$61.45 Stop=$52.77
POSITION: RMD 10G50.00 - July $50c (55 delta) &/or Stock

Downside:

Play Date: 02/10/2010
AMT (American Tower--$41.59; +0.14; optionable): Cell towers and equipment
http://biz.yahoo.com/p/a/amt.html
After Hours: $41.54
EARNINGS: 02/24/2010
STATUS: Bear flag. Great uptrend by AMT from September to January, setup by a base extending back through April. AMT has made its run for now, however, as it has formed that rounded, umbrella top and then broke lower last week on very strong volume, falling through the 50 day EMA and the early December and late November peaks. This week AMT rebounded from the sharp Thursday and Friday selling, tapping the 50 day EMA on the Wednesday high and falling to flat. Showing a doji on the candlestick chart, and indication that this modest bounce (on lower volume to boot) has run out of gas and is ready to resume the selling. Note on the MACD how AMT failed to make a new high even as AMT made a new price high; divergent top, another signal of a weaker move. Looking for a turn down from here to give us the buy. A move to our initial target lands a 48%ish move.
VIDEO: http://investmenthouse1.com/ihmedia/AMT.wmv
Volume: 3.02M Avg Volume: 2.871M
BUY POINT: $41.41 Volume=3.4M Target=$38.92 Stop=$42.31
POSITION: AMT 10P42.50 - Apr. $42.50p (-50 delta)

Play Date: 02/10/2010
CHKP (Check Point Software--$32.75; -0.13; optionable): Security software
http://biz.yahoo.com/p/c/chkp.html
After Hours: $32.75
EARNINGS: 01/28/2010
STATUS: Bear flag. CHKP rallied nicely from late July, gapping out of its base and moving higher through January. The move started to slow in November, and CHKP formed a rounded umbrella top through mid-January, showing something of a double top spanning late December to January. It tried to hold a break lower, but on earnings it tanked below the 50 day EMA on strong volume. Spent this month rebounding to the 50 day EMA, stalling there Tuesday and Wednesday. Ripe to turn back down. Another stock to note the MACD: it made lower and lower highs in late December and January as CHKP made higher price highs; weakening pattern. A move to the target lands a 50%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/CHKP.wmv
Volume: 1.669M Avg Volume: 2.093M
BUY POINT: $32.57 Volume=2.5M Target=$30.52 Stop=$33.21
POSITION: CHKP 10P35.00 - Apr. $35p (-70 delta)

Play Date: 02/10/2010
IVN (Ivanhoe Mines--$13.75; -0.06; optionable): Industrial metals and mining
http://biz.yahoo.com/p/i/ivn.html
After Hours: $13.78
EARNINGS: 11/13/2009
STATUS: Bear flag. IVN was strong along with the other metals in December on into mid-January. As usual it started to test the move; nothing strange there. It kept selling back, however, falling all the way to the mid-December consolidation. Bounced nicely to start February, but after one upside session it rolled back over and fell hard late last week on strong volume, making a new low on this selling. A bounce the past four sessions, but stalling at the bottom of the December consolidation as volume fell to a trickle on the move back up. This is where it should fail if it is going to: that prior action formed a head and shoulders, and the breakdown last week consummated it. This test is confirmation, and as it turns down we move in. A move to the target lands a 55%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/IVN.wmv
Volume: 1.341M Avg Volume: 1.819M
BUY POINT: $13.68 Volume=2.2M Target=$12.15 Stop=$14.45
POSITION: IVN 10O14.00 - Mar. $14p (-50 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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