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Begin Part 2 of 2

SUBSCRIBER QUESTIONS

Q: When you say you are not chasing a stock, if it runs sharply do you ever buy it above the buy point, e.g., if it is up 3% to 4% over the buy point? Or should you just pass it up in this kind of market?

A: What you want to avoid doing is buying a stock that has made a solid percentage move already when you enter. Stocks run, they rest and pullback, then they run again. What we don't like to do (though there will always be times when it happens) is buy a stock that then immediatelty turns down on us and pulls back a few sessions before starting back up. We like to catch them as close to the buy point as possible but that does not mean that if we don't catch it just at the buy point we won't buy. We will usually give ourselves a 5% leeway from a solid breakotu point to take a position. That way the stock is not too far gone and overextended and due for a rest just as we get in. This is even more important with option positions that we buy as time is not our friend. You are left in that quandry of being close to a stop point that is usually set under near support and that puts more pressure on your decision process and that is a point where emotion can start to come in. We want to keep that out of the equation as much as possible. Thus good entry points are important.

We are seeing a lot of good stocks in very nice patterns make strong moves. We don't catch them all at the buy point because sometimes we don't like the volume or there is some very choppy action we want to see resolved; when the volume builds or the action starts trending in the direction we want then we can enter. Or the stock blasts off and it does not come back even though we wait for such a pullback during the session. In those situations we have a move we want to get in on but has moved past the buy point. If it has not run too far, and your 3% to 4% is a good rule of thumb, then we can go ahead and get in. There are many times a stock will come back to test a breakout and provide another entry point. In half the situations in a rising market, however, they don't come back. What we can do is take a partial position and then if it does come back, test and hold the breakout, then add to that position. If it does not come back we have to wait for the next logical pullback, usually the first test of the short term moving averages where it will typically bounce.

CONTINUING PLAYS:

Looking good and ready to move again.
NTST
USTR
SLE
VRNT
PPD

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

$OEX 11/01 BO 467.08 -9.87 457.5 485 8.6M 0 458
Testing back to the 10 day MVA on lower volume.

ADI 11/06 Test BO 29.21 -2.06 26.5 32.45 3.4M 5.8M 27.97
Current. Turned back at the 200 day MVA. Volume lower but it was a thud down to the 10 day.

ALN 11/09 Test BO 9.23 -0.02 7.28 9.75 289K 200K 8.15
Current. Moving laterally over 10. Looks very good.

AMZN 10/21 cup hdl 23.4 -0.85 20.32 24.38 6.4M 10M 21.45
Current. Testing back on very low volume.

ARTI 11/02 Cup 19.87 -0.63 14.85 20 604K 150K 16
Current. Jumped up to the next target and more, but we held on. Volume was lower but now we wonder if we should have taken the gain. Looks like just a low volume pullback.

AVID 10/30 cup hdl 18.59 -0.41 15.65 20.45 431K 177K 17.35
Current. Nice lateral move to test the 10 day MVA. New buys on the strong move off this.

AVP 11/25 cup hdl 51.89 -0.13 52.94 61 938K 1.8M 50.25
Buy not hit. Still looks very good.

BER 11/13 cup hdl 38.79 +0.05 38.4 45 369K 306K 37.65
Current. Very nice; looks ready again.

BMRN 11/21 BO 8.19 +0.08 7.95 11 711K 750K 6.94
Current. Up fractionally.

BOBJ 11/25 BO 18.8 -0.64 20.18 24.94 1.1M 1.8M 18.77
Buy not hit. Looks good still.

BSX 10/19 Test BO 39.2 -0.8 37.75 45.75 2.5M 3.3M 39
Current. To the 18 day MVA on rising volume. Sector is having a hard time and it is about time for BSX to test lower.

CDWC 10/31 cup hdl 49.48 -3.18 53.81 62 2.3M 2.8M 51.74
Current. Did not give much of a chance, gapping lower and finishing on the 200 day. About all we can do with this one is look for a bounce up to exit if we can get it.

COH 10/22 cup hdl 32.41 -0.81 30.25 36.35 980K 1.5M 31
Current. Testing the 10 day MVA. Retail holding up well.

CREE 11/07 Test BO 22.62 -1.3 19.15 24.45 3.2M 3.9M 19.75
Current. Turned over on some more volume. Nvls should help.

CVD 11/05 Test BO 22.9 -0.24 23.65 28 540K 581K 22.25
Current. Holding the 10 day MVA on some rising volume. Needs to hold and give the next move.

CYMI 11/26 Test BO 36.52 -2.17 35.35 42.45 1.6M 2.4M 32.88
New.

DELL 11/04 cup hdl 28.33 -0.34 30.55 36 22M 36M 28.41
Current. Holding the 50 day MVA with a doji on lower volume.

ECL 10/30 cup hdl 48.96 -1.19 49.11 56.55 559K 1M 46
Buy not issued. Dumped to the 18 day MVA on some rising volume. Still not breaking down.

EXBD 11/11 cup hdl 32.5 -1.06 34.65 40 264K 528K 32.22
Buy not hit.

EXPE 11/02 cup hdl 74.88 -2.49 70.55 84 2M 3.2M 70.45
Current. Tested the 10 day MVA on lower, below average volume.

FOX 11/05 cup hdl 26.5 -0.8 27.15 32.45 2.4M 1.5M 25.25
Current. Tested back to the 10 day MVA on lower volume. Not bad.

GYMB 09/18 cup hdl 19.06 -0.77 19.64 22.45 404K 586K 18.27
Current. To the 18 day MVA but low volume.

HAR 11/21 Test 18 62 -0.15 61.6 70 380K 488K 57.29
Current. A breather but volume was sharply higher.

HNR 10/17 Test BO 7.07 -0.13 6.38 7.75 98K 288K 6.95
Current. Holding the 18 day MVA on very low, below average volume.

HTCH 11/13 BO 26.48 -0.21 26.61 31.75 938K 351K 24.35
Current. Very nice lateral move.

HYSL 11/06 Test BO 27.85 -1.64 28.11 33.75 632K 636K 27.15
Current. Turned and fell to the 18 day MVA on rising, above average volume.

IBM 11/11 Test 50 85.06 -1.14 78.45 88 8.6M 12M 80
Current. Testing back on lower volume.

IGEN 11/16 DB hdl 37.68 -1.19 38.81 45 152K 300K 35.97
Buy not hit.

IMN 11/22 A Wedge 40.73 -1.39 42.41 48 567K 700K 39.44
Current. Back to the 18 day MVA but on lower volume.

JEF 11/25 Rv H&S 42.6 -1.5 45.35 53 224K 300K 42.18
Buy not hit. Not doing it.

KLAC 11/05 Test BO 42.77 -1.37 37.86 45 12M 20M 39
Current. Held up well on lower volume selling, all things considered. NVLS may help it out.

KLAC 10/19 BO 42.77 -1.37 33.05 45 12M 1.9M 39
Current.

KR 11/09 Put 15.5 +0.09 13.98 12 3.4M 6M 15.01

KRON 11/13 BO 44.8 +0.11 40.12 47.94 324K 450K 40
Current. Doji after the strong move, so it may be ready to take a breather toward 43.

LBIX 10/14 cup hdl 3.33 -0.17 3.22 4.35 88K 145K 3.32
Current. Dumped to the 50 day MVA on the low but very low volume.

LMLP 11/23 cup hdl 10.01 +0.06 9.75 12.41 477K 135K 8.82
Current. Took a breather but volume was huge. Need to be careful with this type of churning.

LXK 10/29 cup hdl 65.02 -1.45 61 72 1.7M 2.2M 62.48
Current. Modest pullback given the market.

MATK 11/26 Test BO 21.69 -1.2 22.25 27.94 257K 300K 20.69
New.

MSN 11/23 cup hdl 4.2 +0.42 3.98 5.48 496K 150K 3.7
Current. Made the move on huge volume Tuesday.

MVL 11/04 BO 8.75 -0.25 8.74 10.75 353K 400K 8.35
Current. Still testing the 18 day MVA and on lower and lower volume.

MXIM 11/09 Test BO 41.06 -1.86 34.25 45 10M 12M 39.94
Current. Good pullback toward the 200 day.

NBIX 10/08 Rv H&S 46.23 -2.04 44.85 51.75 290K 1.1M 44.94
Current. Back to the 18 day; volume lower. Needs to hold over 45.

NTST 11/14 Test BO 6.89 +0.77 5.96 7.45 248K 100K 5.54
Current. Massive breakout.

NVLS 11/19 Test 50 34.48 -1.77 32.26 38 10M 12M 32.45
Current. Was only down 70 cents after hours on its mid quarter update.

NXTL 11/19 Test BO 12.75 -1.1 13.05 16.15 21M 35M 12.45
Current. All the way to the 18 day MVA. Low volume but gave up the 10 day MVA pretty easy.

NXTL 11/12 Test 50 12.75 -1.1 12.15 16.15 21M 4.5M 12.45
Current.

NYCB 11/18 Put 28.23 -0.67 27.45 25 1.2M 950K 28.55
Buy not hit. Looks ready to tank now.

OMX 11/18 A Wedge 5.62 -0.17 5.96 7.11 230K 2.1M 5.54
Buy not issued. Back to the 10 day MVA on low volume.

PECS 11/23 cup hdl 36.8 -0.45 36.32 43.65 920K 650K 33.78
Current. Doji after the big move. Rested while market sold.

PIXR 11/20 BO 57.13 -1.87 57.85 66 427K 775K 53.8
Current. Turned over on some higher though still below average volume. Still in decent shape.

PNRA 11/07 cup hdl 36.05 -0.29 34.38 39.75 559K 1.2M 33.96
Current. Held up well on lower volume.

POSS 11/18 Test BO 15.54 -0.46 15.01 18.45 84K 127K 13.75
Current. Testing lower on lower volume. Needs to hold at 15.

PPD 11/14 Test BO 25.1 +0.04 25.51 30.55 444K 450K 23.72
Current. Looks ready still.

QCOM 11/07 Test BO 40.33 -1.57 34.78 42 14M 18M 37.75
Current. Lower volume pullback.

QLGC 11/07 Test BO 42.26 -1.81 41.4 50 13M 25M 39
Current. Still holding above the 10 day MVA on lower volume.

QLGC 08/17 CCall 42.26 -1.81 36.48 0 13M 12M 37
Current.

RINO 10/24 Test BO 17.5 +0.86 17.35 20.75 633K 225K 16.06
Current. Making the move on some volume.

RINO 08/28 cup hdl 17.5 +0.86 13.8 20 633K 300K 16.06
Current.

RMHT 11/26 Test BO 11.45 -0.16 12.45 15.55 36K 98K 11.35
New.

SFAM 11/02 BO 6.25 -0.21 6.09 9 47K 400K 5.42
Current. Nice lateral consolidation. NVLS said the purchase was still on.

SLE 10/26 Test BO 23.61 -0.14 23.11 27.55 2.6M 3.8M 22.05
Current. Still in the lateral consolidation.

SNDK 10/30 cup hdl 25.8 -0.35 21.76 28 2.1M 3M 23.94
Current. Looks ready to go again.

UOPX 09/23 cup hdl 34.14 -2.16 35.45 42 313K 262K 33.97
Current. Volatile as the day is long, UOPX sold back to the 18 day MVA on continued above average volume. Needs to hold and bounce here.

UTHR 11/12 DB hdl 16.43 -0.47 17.65 21.45 133K 295K 16.21
Current. Broke the 10 day MVA. Not the action we wanted.

VRNT 11/23 cup hdl 15.4 +1.3 14.75 18 517K 113K 13.55
Current. Still looks ready to buy.

VRTS 08/19 CCall 18.26 -1.79 19.76 20 12M 8.5M 17.45
Current.

VSEA 11/16 Rv H&S 29.98 -1.32 28.03 33 963K 1.4M 27.94
Current. Turned over on some rising volume.

VZ 11/23 cup hdl 39.84 -1.16 40.45 45 6.6M 11M 37.62
Buy not issued.

VZ 10/10 Test 50 39.84 -1.16 34.75 42 6.6M 10M 37.35
Current. Back to the 10 day MVA on lower volume.

WBSN 11/16 BO 26.35 -1 24.94 29.94 1.4M 1.2M 23.19

WEDC 10/19 BO 9.9 -0.13 9.45 12 79K 142K 9.35
Current. Stopped at 10, but low volume. Was it the market or the stock? Will give it another chance to clear 10.

WFR 11/14 cup hdl 8.92 +0.07 8.45 11 229K 325K 7.62
Current. Still moving up the 10 day MVA, but not taking large chunks of real estate.

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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