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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. *********** *************

Part 2 Correction: In part 2, LNCR indicated the incorrect pricing for the buy point, target, and stop, not reflecting the 3:2 split. They are as follows.
Buy: 32.13
Target: 35.95
Stop: 31.20

Upside:

Play Date: 06/16/2010
CLF (Cleveland-Cliffs--$57.51; -0.42; optionable): Steel and iron, catalysts
http://biz.yahoo.com/p/c/clf.html
After Hours: $57.48
EARNINGS: 07/26/2010
STATUS: Double bottom w/handle. Looking at CLF as it starts to form a handle to a double bottom formed off the 200 day SMA by the late May and early June lows. CLF rallied back up to the late May reflex peak on Monday and stalled, working laterally the past two sessions, holding over the 50 day EMA. Volume dried up as it has moved laterally, not bad action as it shows no one interest in getting rid of their stock. CLF may test laterally Thursday and Friday then start up next week. It may go ahead and start up Thursday. Good pattern, and all we have to do is be patient and let it show us the renewed upside break and we move in for a run back up toward the bottom of the April range.
VIDEO: http://investmenthouse1.com/ihmedia/CLF.wmv
Volume: 4.28M Avg Volume: 8.244M
BUY POINT: $58.28 Volume=10M Target=$69.94 Stop=$54.31
POSITION: CLF 10J57.50 - Oct. $57.50c (58 delta) &/or Stock

Play Date: 06/16/2010
JPM (JP Morgan--$38.52; +0.27; optionable): Major bank
http://biz.yahoo.com/p/j/jpm.html
After Hours: $38.37
EARNINGS: 07/15/2010
STATUS: Rolling. JPM continues to show resilience at the February low. Bounced off that level in late May but then failed, coming back again to the February low, undercutting it but then immediately recovering that level. A lateral move above that level and then a break higher Tuesday, followed by a Wednesday break over the top of that lateral move. Watching MACD make a higher low as the stock made a lower low last week, and that shows a positive divergence in the bottom, i.e. that it is gaining momentum. If JPM can make the break through the buy point and hold it, we are looking to move in with the intention of playing a roll back up in its range. The initial target is the January peak.
VIDEO: http://investmenthouse1.com/ihmedia/JPM.wmv
Volume: 37.221M Avg Volume: 46.049M
BUY POINT: $38.73 Volume=50M Target=$44.77 Stop=$37.12
POSITION: JPM 10I38.00 - Sept. $38c (56 delta) &/or Stock

Play Date: 06/16/2010
PII (Polaris--$60.89; -1.18; optionable): ATV's, PWC's
http://biz.yahoo.com/p/p/pii.html
After Hours: $60.89
EARNINGS: 07/12/2010
STATUS: Flag. After a good run through Friday with a gap higher Monday, PII is pausing, moving laterally, holding the modest Monday upside gap. This last move occurred off the second test of the 50% Fibonacci retracement of the February to April run higher. A nice double bottom at that 50% level and the break higher over the 'hump' in the double bottom Now it is testing, and while it may take another day or two to finish (or it may jump back up Thursday), when PII makes the break higher we are looking to move in for a run up to the 127% Fibonacci extension just over 71.
VIDEO: http://investmenthouse1.com/ihmedia/PII.wmv
Volume: 385.281K Avg Volume: 476.032K
BUY POINT: $62.31 Volume=650K Target=$71.00 Stop=$58.78
POSITION: PII 10I60.00 - Sept. $10c (57 delta) &/or Stock

Play Date: 06/16/2010
WBSN (Websense--$20.53; +0.05; optionable): Web security, filtering solutions
http://biz.yahoo.com/p/w/wbsn.html
After Hours: $20.54
EARNINGS: 07/26/2010
STATUS: Test 200 day SMA. WBSN broke out in February, clearing the January peak as well as the highs from 2009. That breakout rallied WBSN through late April and earnings. Earnings were not all that kind and sent WBSN lower, indeed over the course of May and June WBSN gave back the gains on the breakout. Last week it tested the January high and undercut it slightly, but it held at the rising 200 day SMA and immediately jumped back over the January peak. Good volume the past three sessions as WBSN works laterally. A very good risk/reward position for the stock as it undercut that January peak but immediately recovered; could be something of a false breakdown. Looking for WBSN to use this volume to make the break higher. If it can make the move through the buy point and make it stick we are looking to move in. A good risk/reward position with plenty of upside and a close support point.
VIDEO: http://investmenthouse1.com/ihmedia/WBSN.wmv
Volume: 539.287K Avg Volume: 503.105K
BUY POINT: $20.78 Volume=650K Target=$24.11 Stop=$19.34
POSITION: WBSN 10J20.00 - Oct. $20c (57 delta) &/or Stock

CONTINUING PLAYS:

Play Date: 06/14/2010
DLM (Del Monte Foods--$15.16; -0.12; optionable): Processed and packaged foods
http://biz.yahoo.com/p/d/dlm.html
After Hours: $15.16
EARNINGS: 08/30/2010
STATUS: Flag. Short step back Wednesday, just continuing the test back. Formed a tight doji over the 10 day EMA Wednesday, and still positioned for the bounce back. Waiting for that bounce and hold to give us an entry. To recap: You have to eat no matter what the economic conditions. After a solid March through late April surge that tested toward a 10 year high, DLM tested back through early last week, bracketing the 50 day EMA as it tested. Surged higher starting Tuesday, picking up some big volume Thursday as it gapped to the April peak. Testing back Friday and Monday, holding over the 10 day EMA as it does. Might take another day or two to test, but a very nice setup to make the next break higher. Want to see a move through the buy point on more solid trade.
VIDEO: http://investmenthouse1.com/ihmedia/DLM.wmv
Volume: 1.816M Avg Volume: 1.875M
BUY POINT: $15.44 Volume=2.2M Target=$18.55 Stop=$14.39
POSITION: DLM 10I15.00 - Sept. $15c (59 delta) &/or Stock

Play Date: 06/15/2010
ORBK (Orbotech--$11.93; +0.19; optionable): Instrumentation for testing, inspection of electronic equipment (flat screens, circuit boards, etc.)
http://biz.yahoo.com/p/o/orbk.html
EARNINGS: 08/02/2010
STATUS: Double bottom w/handle. Starting to break higher Wednesday, clearing the short down trendline from late April, but practically no volume Wednesday. Looking for volume to kick in as ORBK continues the break higher through the buy point. To recap: Nice rally from February to April, moving with many stocks to the upside. Then the May test with the flash crash and the subsequent test, both coming back to the 200 day SMA and holding, forming a double bottom at that level. Bounced into early June and has since worked basically laterally over the converging 10, 18, and 50 day EMA. It is pinching off in the handle and that often means a move is coming, either up or down. Given the pattern we are looking for an upside move. If ORBK can deliver the breakout and make it stick, we are ready to move in.
VIDEO: http://investmenthouse1.com/ihmedia/SMTC.wmv
Volume: 48.427K Avg Volume: 95.92K
BUY POINT: $12.02 Volume=125K Target=$13.94 Stop=$11.18
POSITION: Stock - (No option chain)

Play Date: 06/15/2010
URI (United Rentals--$12.63; +0.02; optionable): Rental and leasing service
http://biz.yahoo.com/p/u/uri.html
After Hours: $12.63
EARNINGS: 07/26/2010
STATUS: Pennant/Flag. Bounced Tuesday with solid volume and then just took the day off Wednesday. Held flat with the doji as trade was below average, but at a great point to resume the gains. A good chance this turns out to be more of a continuation move, and if we see a higher volume bounce Thursday, we can look at picking it up if it holds. To recap: URI rents construction and industrial equipment. It spent a lot of 2010 moving lower, but as of late March it finally caught fire. It rallied nicely and exploded higher in late April on its earnings report. That move built the strong rally that is the foundation for the current 6 week test. URI has come back to fully test the move from when it turned ballistic, i.e. on the April earnings, but it is still holding a lot of the gain off the February low where it bottomed in 2010. Indeed, it is holding the Fibonacci 50% retracement on the twin bottoms in May and early June, just the kind of pattern you want to see at that level. Monday URI gapped over the 50 day EMA but could not do anything with the move. Tuesday URI was on the move on some strong volume. Very solid and ready to move in as URI continues this upside break.
VIDEO: http://investmenthouse1.com/ihmedia/URI.wmv
Volume: 1.202M Avg Volume: 1.942M
BUY POINT: $12.72 Volume=2.1M Target=$14.69 Stop=$11.64
POSITION: URI 10I10.00 - Sept. $10c (69 delta) &/or Stock

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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