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Begin part 3 of 3

THE PLAYS:

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Each play contains a 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. *********** *************

Upside:

Leader Plays:

Play Date: 02/22/2010
FIRE (Sourcefire, Inc.--$23.94; -0.16; optionable): Security software
http://biz.yahoo.com/p/f/fire.html
After Hours: $23.97
EARNINGS: 02/25/2010
STATUS: Relatively new issue, coming public in March of 2007. Not a spring chicken but hardly one of the old stodgy stocks. Great run in 2009 was in need of a correction, and FIRE sold off in January, shaving off a quick 27%. It sold into the September to early December range, but then immediately reversed to hold the top of that consolidation as FIRE finished basing itself. Nice bounce the second week of February on some good volume followed by a flag pattern through last Tuesday. Last Wednesday FIRE was burning again, break through the top of that small flag on rising, average volume, the best trade since the consolidation started. Looking to move into FIRE as it continues higher toward the January peak at 28; still plenty of room to run here even before getting to that prior high as our initial target. Earnings are Thursday but this stock is growing so we are comfortable with keeping some positions into the results.
VIDEO: http://investmenthouse1.com/ihmedia/FIRE.wmv
Volume: 101.773K Avg Volume: 316.721K
BUY POINT: $24.38 Volume=400K Target=$28.00 Stop=$22.71
POSITION: FIRE 10F22.50 - June $22.50c (80 delta, low OI) &/or Stock

Play Date: 02/22/2010
TEN (Tenneco Automotive--$19.71; +0.23; optionable): Auto part systems
http://biz.yahoo.com/p/t/ten.html
After Hours: $19.73
EARNINGS: 02/04/2010
STATUS: Cup w/handle. Very nice setup from a stock that has solid earnings growth. TEN formed a 7 month base on top of its 50 day EMA, also sitting on top of the August to December base. Like to see new bases form on top of the old ones as it shows the big money is supporting their stocks, adding to positions. Nice bounce then a test last week to near support to form the handle or flag. Monday a nice doji at the 10 day EMA tells us to be watching for the break higher. Looking for a new rally back to the upside to give us the buy.
VIDEO: http://investmenthouse1.com/ihmedia/TEN.wmvVolume: 587.601K Avg Volume: 1.304M
BUY POINT: $20.11 Volume=1.8M Target=$23.98 Stop=$18.91
POSITION: TEN 10G20.00 - July $20c (48 delta) &/or Stock

Downside:

Play Date: 02/22/2010
ATHR (Atheros Communications--$36.84; +0.02; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/athr.html
After Hours: $36.94
EARNINGS: 04/23/2010
STATUS: Double top. This could turn out to be one of those plays that rallied back to a new high, just surpassing the prior peak only to turn over and show a big tombstone doji on the candlestick chart. Volume was up as well, moving back above average on the intraday reversal. If you look at the January peak it showed the same action: sellers were not letting it over that level. We are watching to see if ATHR does the same here, and if it turns back down, preferably with a small gap, we are ready to move for a downside run. A move down toward the early February low (31) is a good move and our initial target is above that. A move to the target lands a 60%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/ATHR.wmv
Volume: 1.851M Avg Volume: 1.404M
BUY POINT: $36.64 Volume=16K Target=$33.55 Stop=$38.08
POSITION: ATHR 10P37.00 - Apr. $37c (-47 delta)

Play Date: 02/22/2010
BUCY (Bucyrus International--$62.30; -0.34; optionable): Mining machinery
http://biz.yahoo.com/p/b/bucy.html
After Hours: $62.55
EARNINGS: 04/19/2010
STATUS: BUCY formed one of those head and shoulders tops from late December through early February and started to break lower. As is often the case, however, it reversed and rallied the past two weeks. It has now reached the 78% Fibonacci retracement of that move and on Friday it closed well off its intraday high on a spike in volume. Maybe expiration trade, but that got us looking at it. Monday BUCY gapped higher and reversed to close lower. Volume was still solidly above average. The 78% retracement level is a key level and if BUCY sells from here, with a nice little gap to boot, that will be worth a shot at the downside play. Looking for a move down toward the original neckline, actually a point above; nice safe target. That move lands a 50+%ish gain.
VIDEO: http://investmenthouse1.com/ihmedia/BUCY.wmv
Volume: 3.473M Avg Volume: 2.745M
BUY POINT: $61.97 Volume=4M Target=$56.25 Stop=$64.61
POSITION: BUCY 10P65.00 - Apr. $65p (-54 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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