stock recommendation, stock pick

Begin Part 2 of 2

THE PLAYS:

Wednesday plays:
BRCD: Moved lower but on lower volume, holding its recent range. Still like it.
HRBT: More of a test, dropping to form a handle on lower volume.
DORL: Hit the buy but on lower volume. May test the move.

Best Plays:
1) CFFN: Nice pattern.
2) MTXX: Outstanding accumulation.
3) Watchlist: IRN testing the move. SRCL still forming a good handle.

NEW PLAYS:

Upside:

CVTX (CV Therapeutics--$25; +0.34; optionable): Drugs
http://biz.yahoo.com/p/c/cvtx.html
STATUS: Break of downtrend. CVTX sold with the rest of the market, but it started to rally in early July, and when the selling got intense it managed to hold the line. The past week it jumped higher over the 50 day MVA. It now appears to be testing that move, moving laterally Wednesday on lower, below average volume following some strong moves higher on well above average volume. Now we let the stock move laterally a bit, and then pick it up when it moves through the buy point.
Volume: 807.525K Avg Volume: 834.454K
BUY POINT: $25.25 Volume=1.3M Target=$30 Stop=$23.48
POSITION: UXC JD - Oct. $20 c (78 delta) and/or Stock
http://www.investmenthouse.com/cd/cvtx.html

CFFN (Capitol Federal Financial--$26.41; +0.56; no options): Savings & loan
http://biz.yahoo.com/p/c/cffn.html
STATUS: Double bottom w/handle. After a strong move up off the 200 day MVA after the heavy July selling, CFFN is forming a handle to the double bottom pattern. Volume is lower on the handle though it moved a bit higher on Wednesday's rally off the lows. This is a stronger sector. Accumulation weeks lead down weeks in the base 4 to 3. All it takes is a simple majority to have good accumulation. It is forming this pattern after leading the market into the July selling and is now ready to reassert itself.
Volume: 86.159K Avg Volume: 121.863K
BUY POINT: $27.25 Volume=183K Target=$32.71 Stop=$25.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/cffn.html

MTXX (Matrixx Initiatives--$9.85; -0.07; no options): Drug delivery
http://biz.yahoo.com/p/m/mtxx.html
STATUS: Ascending wedge. MTXX is coming off of the bottom of a much larger base, but it is showing a very tight ascending wedge as it moves up the 50 day MVA (9.54) at the lows of the base. Accumulation weeks are outstanding at 7 to no distribution weeks in the pattern.
Volume: 22.8K Avg Volume: 25.409K
BUY POINT: $10.05 Volume=38K Target=$12 Stop=$9.35
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cd/mtxx.html

MEMBER PORTFOLIO: CUB, EBAY, HOTT; LOW, NOC, PG, QLGC, RCII, SRCL, WM

LOW 07/06 Test 50 37.85 -0.24 0 0 5.3M 0 0
Rallied up to the 18 day MVA on lower volume and showing a doji. It has been running out of steam and it may be ready to roll over here for a test of 34. A downside put opportunity.

RCII 07/06 Cup 53.51 +0.48 0 0 465K 0 0
Broke over the 50 day MVA Monday and is now testing the move on lower volume. RCII looks to be ready to try a run to 58 of the market moves higher after this consolidation.

CONTINUING/WATCHLIST:

We have made a change to the table. Instead of average volume we have included the target volume.

Stock Date Play Close +/- Pivot Tgt Vol TgtV Stop

SOX 07/20 BO 0 0 318 350 0 0 329
Current. Flirted with our trailing stop at 329 for awhile and then managed to move higher. We should have taken our gain earlier but it looked as if the semis would recover with the market.

AMI 07/24 A Wedge 7.25 +0.71 6.77 9.94 515K 173K 6.15
Current. Hit the buy on a strong move.

BLUD 07/24 A Wedge 28.19 +0.69 24.56 29.94 294K 300K 22.55
Current. Another good move higher on continued above average volume.

BLUD 07/15 A Wedge 28.19 +0.69 23.55 28.26 294K 267K 21.55

BRCD 07/30 Rv H&S 18.75 -1.14 20.22 24.94 10M 18M 18.88
Buy not hit. Still in good shape, pulling back on lower volume.

BWA 07/24 Put 53.68 -0.49 53.55 49.25 367K 450K 55.25
Current. Lower volume loss, but could not break the 18 day MVA.

CFCP 07/29 A Wedge 14.95 -0.3 15.55 18.65 8.4K 55K 14.35
Buy not hit. Sold back on lower volume. Almost there.

CFFN 07/31 DB hdl 26.41 +0.56 27.25 32.71 86K 183K 25.72
New.

COLM 07/27 Dbl btm 34.95 -0.59 34.25 39.95 317K 275K 32.95
Current. Held up well, giving a lower volume test of 34 and then rebounding.

CREE 07/15 BO 15.12 -0.72 14.05 17 6.1M 2.2M 13.07
Current. Gapped higher and then fell on stronger volume, a victim of KLAC. Held above the 10 day MVA on the low. Still looks good.

CUB 07/06 Cup 20.6 +0.59 0 0 211K 0 0

CVTX 07/31 BO 25 +0.34 25.25 30 808K 1.3M 23.48
New.

DELL 07/27 Rv H&S 24.93 -0.16 23.12 26.15 24M 30M 22.55
Current. Pulled back below the 50 day MVA on lower volume, recovering well off the low. After a bit of a consolidation we look for the move up to 26.

DOCC 07/25 BO 13.55 +0.11 11.9 14.25 98K 200K 11.07
Current. Moving higher but on lower and lower volume. May be ready to test back toward 12.50.

DORL 07/30 Dbl btm 38.34 +0.67 37.96 45.55 326K 410K 35.3
Buy alert not issued. Hit the buy but on lower volume. Waiting for another test and then rally.

DROOY 05/21 A Wedge 2.86 -0.11 4.85 7 3.7M 4M 4.30

DSCM 07/17 Flat 2.58 +0.02 3.05 4.15 104K 300K 2.75
Buy not hit. Rallying back up to the 50 day MVA but out of the pattern.

EBAY 07/02 Test 50 57.09 -1.16 57.95 63 8.9M 600K 58.50

HGSI 07/22 Test 50 17.33 +0.11 15.31 18 2.9M 3.6M 14.05
A bit higher on continued above average volume. Still looks good.

HOTT 07/06 Test 50 15.55 -6.9 0 0 11M 1M 0

HRBT 07/30 Dbl btm 26.14 -0.86 27.61 31.75 15K 41K 25.68
Buy not hit. Forming the handle on low volume.

IMN 07/29 Flat 30.44 -0.38 30.26 36.45 170K 200K 29.55
Current. Doji on lower volume. May form a lateral handle.

LOW 07/06 Test 50 37.85 -0.24 0 0 5.3M 0 0

MDT 07/25 Put 40.4 +0.93 36.85 32.75 4.2M 5M 38.25

MTXX 07/31 A Wedge 9.85 -0.07 10.05 12 23K 38K 9.35
New.

NOC 07/06 Test 50 110.7 +3.28 0 0 1.9M 1.7M 0

PG 07/23 Put 88.99 +1.71 81.45 75.75 5.1M 4M 83.50

PPDI 07/20 Put 23.04 +0.62 19.79 16.03 697K 1.2M 22
Current. Up to the 50 day MVA, but on lower, below average volume.

QLGC 07/06 Test 18 40.75 -1.2 0 0 13M 16M 0

RCII 07/06 Cup 53.51 +0.48 0 0 465K 0 0

ROOM 07/27 Put 42.7 -0.65 39.65 34.24 943K 1M 41
Buy not hit. Another doji below the 50 day MVA.

SCIO 07/29 cup hdl 31.36 -0.59 32.55 39 3.8M 1.5M 29.95
Current. A bit lower but held the 10 day MVA as volume rose.

SRCL 07/13 Dbl btm 33.01 -1.11 35.25 42.25 473K 558K 32.78
Still forming the handle on lower volume. Good action.

SRZ 07/15 Put 25.27 +0.03 24.54 21.05 215K 300K 25.54
Doji above the 10 day MVA.

VALM 07/29 BO 21.75 +0.12 22.38 26.85 105K 120K 20.81
Alert not issued. Doji above the 10 day MVA. Good test.

WM 07/06 Cup 37.41 +0.71 0 0 4.9M 5.5M 0

WTW 05/23 Test BO 43.65 +1.02 43.7 50 285K 250K 40.64
Up toward the old high though volume remains low.

Good Investing!
Jon L. Johnson and The Daily 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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