understanding the stock market, stock split

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THE PLAYS:

ALN (Allen Telecom--$7.10; +0.06; optionable): Wireless infrastructure
http://biz.yahoo.com/p/a/aln.html
STATUS: Testing breakout. ALN blasted over the 200 day MVA (5.71) in late October, and then spent last week moving laterally on lower volume before showing a volume spike Friday on a very tight doji. A very nice consolidation as ALN has not given back any of the move as it consolidates; stingy with gains is great. Accumulation is positive since January at 8 up weeks on rising volume to 7 down weeks on rising volume, good accumulation given the market fall in that time. Money flow is shooting up ahead of the stocks move still. Wireless has been one of the best tech performers.
Volume: 204.5K Avg Volume: 111.644K
BUY POINT: $7.28 Volume=200K Target=$9.75 Stop=$6.77
POSITION: ALN CA - Mar. $5c (93 delta, low OI) and/or Stock
http://www.investmenthouse.com/ci/aln.html

CAI (Caci Intl--$37.20; +0.90; optionable): Technical services
http://biz.yahoo.com/p/c/cai.html
STATUS: After it split in December 2001, CAI started this year-long base and is just now forming a handle right at the previous high. Volume has backed off on the handle as it tests back to the 10 day MVA where CAI closed Friday. Accumulation in the base is excellent at 12 up weeks on rising volume to 5 down weeks on rising volume. CAI also boast being one of the highest ranked stocks in all categories. Great pattern and we just wait for a breakout.
Volume: 273.9K Avg Volume: 450.954K
BUY POINT: $43.2 Volume=517K Target=$52 Stop=$40.18
POSITION: CAI CH - Mar. $40c (61 delta) and/or Stock
http://www.investmenthouse.com/ci/cai.html

MXIM (Maxim Integrated--$33.37; -0.82; optionable): Semiconductors
http://biz.yahoo.com/p/m/mxim.html
STATUS: Testing the 10 day MVA. MXIM surged Monday and then spend Thursday and Friday filling the gap up, coming to rest Friday right on the 10 day MVA at the close. Volume spiked up to well above average as it showed a 'hammer' doji on the test lower. Money flow has shot up ahead of the stock, and is holding up well on this pullback. Accumulation leads 5 up weeks on rising volume to 3 down weeks on rising volume. Ready to move up with the Nasdaq.
Volume: 12.194M Avg Volume: 9.997M
BUY POINT: $34.25 Volume=12M Target=$41.25 Stop=$31.85
POSITION: XIQ BF - Feb. $30c (69 delta) and/or Stock
http://www.investmenthouse.com/ci/mxim.html

Downside:

KR (Kroger--$14.1; -0.88; optionable): Grocery stores
http://biz.yahoo.com/p/k/kr.html
STATUS: Put. Crashed lower out of a lateral consolidation below the 50 day MVA, tanking on a big volume spike. It looks to be an easy shot down to 12, and that is an excellent return given the low option cost.
Volume: 6.702M Avg Volume: 4.678M
BUY POINT: $13.98 Volume=6M Target=$12 Stop=$15.01
POSITION: KR MC - Jan. $15p (-59 delta)
http://www.investmenthouse.com/ci/kr.html

CONTINUING PLAYS:

Still look good:
ADI: Nice
KLAC
LXK
MDCO
QLGC
SFAM
STCO
AMZN

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

$OEX 11/01 BO 457.39 -3.16 457.5 485 8.1M 0 449
Current. Back to where we started from, but poised to move with a doji right on the 10 day MVA. Good point to start new positions on another move up.

ABFS 10/24 Test BO 29.85 +0.15 31.05 37 122K 475K 28.88
Current. Trying to break the 18 day MVA on the high but unable to generate any volume and is thus failing. If it cannot make the move early this week we are going to take the money off the table and put it elsewhere.

ADI 11/06 Test BO 26.92 +0.02 27.75 32.45 3.5M 5.8M 25.81
Buy not hit. Looks very ready.

ALN 11/09 Test BO 7.1 +0.06 7.28 9.75 204K 200K 6.77
New.

AMLN 10/19 Test BO 18.2 +0.2 18.75 20.45 537K 750K 17.16

AMLN 09/18 cup hdl 18.2 +0.2 13.55 20.25 537K 750K 17.16
Current. Tested the 18 day MVA on the low and bounced. Still solid.

AMZN 10/21 cup hdl 19.51 +0.39 20.32 24.38 7.1M 10M 18.9
Buy not hit. Looks very good.

ARTI 11/02 Cup 15.75 -0.77 14.85 17.75 275K 150K 14.41
Current. Testing lower off the doji Thursday. Volume shrank. 15 is support.

AVID 10/30 cup hdl 17 +0.53 15.65 18.51 660K 177K 15.15
Current. Nice test and started up Friday on stronger volume. Nice.

BG 11/07 Test BO 24.9 -0.1 25.35 30 288K 425K 24.25
Buy not hit. Very tight doji Friday on rising volume. May be ready.

BIO 11/07 Dbl btm 44.4 -1.5 46.09 53 321K 225K 42.86
Buy not hit. Turned down from the breakout on stronger volume. Not a good answer to the Thursday move.

BLUD 10/10 BO 23.65 +0.84 21.4 24.24 376K 650K 21.85
Current. Moving back up and looks ready for more.

BSX 10/19 Test BO 38.89 -0.28 37.75 45.75 1.1M 3.3M 37.65
Current. Low volume pullback and doji looks good for another bounce up, but these medical and healthcare stocks are on double secret probation right now, and we are not going to give them much downside room.

BSX 09/12 cup hdl 38.89 -0.28 30.94 40 1.1M 3.3M 37.65
Current.

C 10/26 DB hdl 36.87 +0.42 36.06 42.55 17M 35M 33.54
Buy not issued. On a break over 37.50 on the target volume is a buy.

CAI 11/09 cup hdl 37.2 +0.9 43.2 52 274K 517K 40.18
New.

CCCG 10/29 Test BO 19.58 -0.12 18.35 22 95K 100K 18.65
Current. Very nice pullback, showing a doji over the 10 day MVA on lower volume.

CCCG 09/12 Cup 19.58 -0.12 13.45 20 95K 51K 18.65
Current.

CDWC 10/31 cup hdl 51.95 -1.03 53.81 62 2.2M 2.8M 50.74
Current. Holding the 18 day MVA on the low on lighter volume.

CENT 10/15 Test BO 19.99 -0.01 18.55 22.25 90K 192K 19.05
Current. Another doji over the 10 day MVA. Tends to blast higher out of these patterns.

COH 10/22 cup hdl 29.74 -0.86 30.25 36.35 517K 1.5M 29.85
Current. Right at the 18 day MVA on very low volume. Holding the move but needs to hold it here.

CREE 11/07 Test BO 18.71 -0.47 19.15 22.48 2M 3.9M 17.81
Current. Looks ready for another run up.

CVD 11/05 Test BO 21.76 -0.71 23.65 28 318K 581K 21.75
Current. Tested the 18 day MVA on the low and bounced some. Not great action following the Wednesday move, but the entire market was weak.

DELL 11/04 cup hdl 29.79 -0.01 30.55 36 19M 36M 28.41
Buy not hit. Looks good.

ECL 10/30 cup hdl 48.46 -0.31 49.11 56.55 439K 1M 46
Buy not issued. Testing back toward the 10 day MVA on the low. Looking for a jump on a jump in volume.

EXPE 11/02 cup hdl 72.6 -2.5 70.55 84 3.1M 3.2M 68.48
Current. Lower volume test of the strong move. Could touch back toward 70 before moving higher.

FOX 11/05 cup hdl 27 +0.51 27.15 32.45 1.4M 1.5M 25.25
Current. Started back up Friday on lower though still above average volume.

GYMB 09/18 cup hdl 18.13 -0.42 19.64 22.45 364K 586K 18.27
Current. Moved below the 18 day MVA but on low volume. Still like retail.

HLYW 10/14 Test BO 16.42 -0.6 19.45 22 1.1M 1.2M 18.09
Current. Below the 200 day MVA on lower volume.

HNR 10/17 Test BO 6.98 -0.1 6.38 7.75 73K 288K 6.35
Current. Tried to rally but gave it back on low volume.

HYSL 11/06 Test BO 26.76 -0.75 28.11 33.75 323K 636K 25.94
Buy not hit. Tested the 10 day MVA on lower volume. Will need a couple more days along this level and then it will be ready.

IDCC 11/02 cup hdl 14.74 -0.26 13.35 16.25 945K 700K 13.88
Current. Lower volume pullback (a bit lower) after the strong move. Look for 14 to hold on a test.

IDXX 09/26 cup hdl 35.27 -0.5 32.11 36.75 343K 468K 33.88
Current. Got a bit wild Friday, falling below the 18 day MVA intraday and then recovering on high volume. Buyers came back in, but this one on double secret probation as well.

ITRU 09/26 cup hdl 3.47 +0.29 3.35 4.75 413K 550K 2.99
Current. Making the breakout move.

KLAC 11/05 Test BO 37.05 +0.42 37.86 45 19M 20M 35.21
Current. Looks ready again.

KLAC 10/19 BO 37.05 +0.42 33.05 38 19M 1.9M 34.94
Current.

KR 11/09 Put 14.1 -0.88 13.98 12 6.7M 6M 15.01
New.

KSWS 10/23 cup hdl 24.54 -1.31 25.25 29.94 213K 187K 23.93
Current. Not a penny lower.

LBIX 10/14 cup hdl 3.93 -0.08 3.22 4.35 261K 145K 3.32
Current. Lost some momentum Friday with gap higher and loss, but lower volume was good. Solid week.

LNCR 10/19 Cup 32.32 -1.74 35.32 40.55 1.6M 1.1M 33.65
Exited.

LXK 10/29 cup hdl 62.35 +0.32 61 72 1.3M 2.2M 56.73
Current. Beautiful test.

MDCO 11/06 Test BO 14.33 +0.04 15.04 20 296K 453K 13.85
Buy not hit. Very nice session Friday.

MME 10/31 Put 33.29 -3.13 35.22 32.85 1.9M 839K 38

MVL 11/04 BO 8.37 -0.12 8.74 10.75 139K 400K 7.88
Current. Very nice low volume test of the 10 day MVA, showing a doji. Looks ready for the next move.

MXIM 11/09 Test BO 33.37 -0.82 34.25 41.25 12M 12M 31.85
New.

NBIX 10/08 Rv H&S 46.15 -1.4 44.85 51.75 867K 1.1M 43.94
Current. Testing the 10 day MVA. Looked good but volume jumped much higher. 45 is support.

ODSY 10/30 cup hdl 36.35 -1.51 36.31 42 490K 328K 35
Current. Caught up in the THC related selling Friday, dropping to the 10 day MVA on strong volume. Not going to take chances with any of these stocks and will cut and run if the selling continues as nothing worse than a failed breakout.

PETM 08/26 cup hdl 18.04 -0.65 17.04 22.85 1.6M 2.8M 18.85
Current. Breaking the 50 day MVA on rising, average volume. We will give it Monday to see if buyers come back in to kick it back up on strong volume. If not we won't risk it tanking on us.

PFGC 10/12 Test 50 35.35 -1.12 36.55 39.5 425K 500K 36.35
Exited.

PNRA 11/07 cup hdl 32.64 -1.26 34.38 39.75 677K 1.2M 31.97
Buy not hit. Dropped below the 10 day MVA.

QCOM 11/07 Test BO 34.76 -0.18 34.78 40 26M 18M 33
Current. Gapped higher but reversed to close at the 18 day MVA on big volume. Nothing bad to report in earnings, so we still like it but won't let it slide away here. Needs to hold that 18 day MVA on the close.

QLGC 11/07 Test BO 40.65 -0.78 41.4 50 19M 25M 39
Current. Looking for more.

QLGC 08/17 CCall 40.65 -0.78 36.48 0 19M 12M 37
Current.

QQQ 11/02 BO 25.07 -0.47 25.96 28 77M 90M 23.85
Current. Pulled back to roughly the 10 day MVA. Think it is going to hold here and rally back.

RARE 10/28 DB hdl 25.69 -0.78 28.22 33.85 421K 355K 26.24
Buy not hit. Not good action, tanking to the 50 day MVA on sharply rising volume.

RGIS 10/26 cup hdl 29.16 +0.2 29.75 33 185K 525K 28.35
Current. Holding the 18 day MVA on nice, below average volume.

RGIS 10/03 cup hdl 29.16 +0.2 28.84 33 185K 525K 27.74
Current.

RINO 10/24 Test BO 15.55 +0.02 17.35 20.75 107K 225K 16.06
Current. A doji above the 50 day MVA as RINO continues to consolidate over this level on below average volume. We will give it some more room to work given its great earnings and sales, but won't let it go below the 50 day MVA at 15.

RINO 08/28 cup hdl 15.55 +0.02 13.8 20 107K 300K 16.06
Current.

SCSS 10/19 cup hdl 7.9 -0.16 7.75 9.55 312K 200K 7.96
Current. Doji just below the 18 day MVA on rising volume. Do or die point here, and it needs to show strength early this week.

SCSS 09/21 cup hdl 7.9 -0.16 6.02 9 312K 200K 7.96
Current.

SFAM 11/02 BO 5.8 +0.14 6.09 9 62K 400K 5.42
Current. Really looks ready to roll.

SHFL 11/02 Cup 20.12 -0.49 23.8 28.55 514K 375K 22.13
Current. Held the simple 50 day MVA and some support at 20, so will see if it bounces here.

SLAB 10/16 Test 50 21.72 -1.28 24.4 28 1M 1.3M 22.69
Current. Back to the 50 day MVA, but on very low volume. Needs to rally in a tech move.

SLE 10/26 Test BO 23.15 +0.13 23.11 27.55 2.7M 3.8M 22.05
Current. Gapped higher Friday but could not hold the move on some rising, average volume. Still looks very good.

SNDK 10/30 cup hdl 20.36 +0.1 21.76 26.25 1.8M 3M 20.24
Buy not issued. Very nice doji on low volume at the 10 day MVA.

STCO 11/04 Test 18 12.74 +0.29 12.95 15.95 56K 135K 11.95
Buy not hit. Looks ready.

STE 10/07 BO 25.58 -0.84 25.24 29.4 447K 711K 25.35
Current. Struggling w/the entire sector. Definitely needs to move over the 10 day MVA at 26 early in the week.

STE 09/28 BO 25.58 -0.84 23.95 28.75 447K 711K 25.35
Current.

STN 10/05 cup hdl 18.26 -0.23 17.62 21.45 150K 600K 17.65
Current. Nice test of the 10 day MVA on low volume.

UNFI 10/15 BO 23.86 -0.34 24.05 28.85 167K 185K 23.05
Current. Holding the 18 day MVA as volume rose to average. Just climbing the short term MVA.

USNA 10/14 Flat 9 -0.3 7.35 10 67K 65K 8.35
Current. Testing the 18 day MVA on some strong volume. Needs to hold here give the sector.

VAR 10/25 A Wedge 47.66 -1.26 47.5 54.55 584K 550K 47
Current. Dropped to the 18 day MVA on the close (traded lower but recovered) on rising, above average volume. Going to strictly obey the stop - - double secret probation.

VAR 09/16 A Wedge 47.66 -1.26 43.96 50.55 584K 550K 47
Current.

VRTS 08/19 CCall 16.29 -0.83 19.76 20 9.8M 8.5M 17.45
Current. Holding at the 50 day MVA on below average volume.

VZ 10/10 Test 50 38.68 +0.57 34.75 42 7.3M 10M 37.35
Current. Tested the 10 day MVA and moved up on some rising volume. Looks ready to move again.

WEDC 10/19 BO 8.29 -0.16 9.45 12 97K 142K 9.15
Current. Struggling to hold some support at 8.50. Decided to give it one more day to see how it reacts when the tech market is moving up.

WTW 10/23 BO 49.15 +0.15 49.45 57 254K 941K 45.99
Buy not hit. Not going anywhere fast.

XRAY 10/05 cup hdl 36.21 -0.38 42.28 48.75 542K 900K 39.85
Current. Held 36 and moved up on some rising volume. Will see if tests 38 for an exit point.

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.

understanding the stock market
stock split