stock recommendation, stock option

Begin part 2 of 2

THE PLAYS

Good movers Tuesday: C; KLAC; NTES; SINA; SOHU; TSCO; XMSR

Tuesday Plays:
RRC: Nice continued breakout on nice volume.
SNUS: Fell like a very heavy stone.
TSCO: Breakout.

Best Plays:
1) DCTM: Nice test of the breakout.
2) INSP: Very nice consolidation
3) Continuing: LUV; MVSN is still holding up well; FLSH is in a nice lateral consolidation.

New Plays:

Upside:

Play Date: 06/03/2003
DCTM (Documentum--$21; -0.14; optionable): Application software
http://biz.yahoo.com/p/d/dctm.html
STATUS: Testing the breakout. Looking at DCTM again. It got a bit volatile in May, but that formed the right shoulder to its 6-month reverse head and shoulders pattern. Accumulation in the base was outstanding at 8 up weeks on rising volume to 3 down weeks on rising volume. It broke out in late May on strong volume and has moved laterally the past three sessions. It was ready to run Monday, but the market pullback late brought it back to flat. It is holding 21, being stingy with the gain. We are looking for another blast higher on stronger volume to enter positions after this test proves successful.
Volume: 908.31K Avg Volume: 1.212M
BUY POINT: $21.78 Volume=1.5M Target=$26 Stop=$20.26
POSITION: QDC JD - Oct. $20c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/dctm.html

Play Date: 06/03/2003
TSCM (The Street.Com--$5.05; -0.2; no options): Internet information provider
http://biz.yahoo.com/p/t/tscm.html
STATUS: Testing the breakout. TSCM broke out of a 4.5 month cup base in April. The base showed solid 5 to 3 accumulation. It then moved laterally through may and broke higher at the end of that month. It has now spent the past week pulling back on lower and lower volume to test the 10 day MVA (4.95). Money flow is excellent and continues to move up ahead of the stock even as it tests back. This is the second consolidation of the breakout, and we are looking for a strong move higher on a return of volume.
Volume: 112.3K Avg Volume: 146.454K
BUY POINT: $5.32 Volume=225K Target=$6.55 Stop=$4.95
POSITION: - Stock (no options)
http://www.investmenthouse.com/cd/tscm.html

Continuing plays that look good:

Play Date: 05/31/2003
INSP (Infospace--$14.24; -0.16; no options): Internet information providers
http://biz.yahoo.com/p/i/insp.html
STATUS: Flying plateau. These stocks are all working through a lateral consolidation after a strong break higher. Volume as INSP moves laterally is lower and below average. Tuesday INSP showed a hammer doji as it tested the 10 day MVA (14.20). Good accumulation and super money flow.
Volume: 351.435K Avg Volume: 466.681K
BUY POINT: $14.96 Volume=500K Target=$18 Stop=$13.91
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/insp.html

MEMBER PORTFOLIO: AMZN, BRCM, IBM, IGEN, KLAC, MSFT, RCII, TEVA, WMT YHOO
These are the stocks that our subscribers vote to put in a 'portfolio' to track their progress and comment upon when they reach buy points, sell points, or levels to write some covered calls on. They are not intended to be held as a portfolio by subscribers and are not covered in their entirety in every report. When something interesting is developing we take note.

CONTINUING/WATCHLIST:

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

ABTL 05/21 Test BO 6 +0.13 5.25 6.94 294K 371K 4.88
Current. Still moving higher in an impressive move.

ADIC 05/13 DB hdl 10.54 +0.11 9.64 11.65 667K 521K 9.78
Current. Nice lateral move testing the 10 day MVA after the strong run. Very stingy with its gains; solid.

AETH 05/14 Cup hdl 5.05 -0.03 4.45 5.45 373K 244K 4.35
Current. Still working up the 10 day MVA after the breakout. Looks solid.

AGEN 05/13 Cup hdl 13.2 -0.17 10.95 13.22 768K 417K 10.97
Target Hit. Took some solid gain.

AMZN 05/03 BO 35.23 -0.17 30.3 35.45 10M 12M 32.45
Current. Gapped down but bounced back to recover most of the loss.

AVID 05/22 Flat 35.77 -0.68 29.06 34.78 1M 750K 27.15
Buy Not Issued. Doji. Might be ready to test back toward the 10 day MVA at 32.50.

AXP 05/24 Test BO 42.35 -0.03 40.75 46.45 3.8M 6M 39.94
Current. Still moving up the 10 day, though slowing a bit.

BCE 04/05 Cup 22.3 -0.05 19.9 23.75 331K 550K 21.05
Current. Super move and now may need a pullback to test the 10 day MVA near 21.75.

BLTI 02/10 Test BO 14.31 -0.46 7.2 13.45 737K 300K 11.78
Current. It has been a strong move over several months and BLTI may need to test back further after a doji on volume Monday. Should hold the 18 day MVA at 13 if it is going to stick with the uptrend.

BRCM 05/03 Cup hdl 24.55 +0.52 19.2 22.94 14M 15M 21.15
Current. Still working up the 10 day MVA after the breakout.

C 04/18 Rv H&S 42.25 +0.88 41.25 48.55 15M 23M 39.38
Current. Nice move back up.

CELG 05/14 A Wedge 31.92 +0.64 30.98 37.12 2.8M 1.8M 29.88
Current. May be ready to start back up after another 18 day MVA test.

CNQR 04/22 Test 18 6.19 -0.45 6.75 8.12 382K 250K 6.22
Exited. Fell through the 18 day MVA on rising volume.

CTL 05/01 Cup hdl 34.1 +0.05 32 38 470K 1.3M 32.45
Current. Stalling some here at 34. If cannot clear this it could be in some trouble as it would have made a lower high on lower volume.

CTXS 03/29 Cup hdl 22.11 +0.35 14.12 17.25 3.3M 5.3M 19.98
Current. Having some trouble with 23, but still trending higher.

DCLK 04/26 Test BO 10.17 -0.61 9.04 11.35 2.4M 1.9M 9.48
Current. Gapped down but managed to hold the 10 day MVA as it continues up the short term MVA.

DCTM 06/03 Test BO 21 -0.14 21.78 26 908K 1.5M 20.26
New.

DKS 03/18 DB hdl 27.75 -0.75 23.81 28.42 306K 225K 28.35
Current. Back down to the 50 day MVA after a strong bounce Monday. Let it ride given the lower volume, but it has to bounce here given the double top in May.

DKS 02/19 DB hdl 27.75 -0.75 22.75 27.35 306K 225K 28.35
Current.

DRIV 05/08 Test BO 20 +0.31 17.62 20.95 716K 1.4M 17.96
Current.

EBAY 12/12 Test 18 99.04 -0.38 69.45 92 6.7M 12M 96
Current. Could be ready for another bounce after an 18 day MVA doji.

EBAY 10/15 Test 50 99.04 -0.38 62.45 92 6.7M 12M 94.92
Current.

ED 05/31 Cup hdl 43.29 +0.27 44.36 47.25 1.2M 1.4M 42
Buy Not Hit.

FDRY 04/29 Cup hdl 15.7 +0.6 10.9 13.15 4.3M 4.4M 13.75
Current. Nice bounce back up on volume.

FLSH 05/22 Test BO 11.12 +0.07 10.55 12.75 119K 195K 10.15
Current. Nice lateral move on lower volume as it consolidates the gains.

FLSH 05/12 Rv H&S 11.12 +0.07 9.2 10.96 119K 195K 10.15
Current.

GNTA 05/29 Test BO 10.96 -0.52 11.62 14 1.8M 904K 10.74
Current. Tapped the 18 day MVA on the low and rebounded to hold the 10 day.

GRMN 11/06 Cup hdl 48.45 +0.8 22.34 37.45 527K 198K 44.44
Current. Nice lateral move on low volume over the 10 day MVA.

GSPN 05/24 Test BO 8.39 +0.28 7.42 10 2.5M 2.8M 7.15
Current. Running out of some volume after the strong breakout, but still a strong move.

HAS 04/12 Test BO 15.97 -0.09 14.88 17.88 869K 1.2M 15.55
Current.

HAS 03/31 Test BO 15.97 -0.09 14.65 17 869K 1.2M 15.35
Current.

IBM 05/31 Cup hdl 83.82 -3.51 88.92 100 21M 10M 84.55
Buy Not Issued. Gapped below the 50 day MVA on volume.

IGEN 01/11 A Wedge 34.85 -0.03 0 0 157K 375K 36

ILXO 04/15 Cup hdl 15.49 -1.31 11.6 15.32 524K 293K 15.3
Current. Turned down to the 18 day MVA. Needs to hold here.

INSP 05/31 Test BO 14.24 -0.16 14.96 18 351K 500K 13.91
Buy Not Hit.

JCOM 05/27 Cup hdl 33.59 -1.81 38.12 45.55 1M 1M 34.94
Current. Sold down to the 18 day MVA but managed to hold that level as volume rose. Stayed with it because it held and it is volatile, but needs to bounce.

JNPR 05/22 Flat 13.88 -0.11 12.9 15.55 20M 17M 12.72
Current. Still working nicely up the 10 day MVA.

JNPR 04/15 Flat 13.88 -0.11 10.6 13.42 20M 17M 12.72
Current.

KLAC 01/11 Test BO 47.36 +1.89 0 0 13M 0 0
Resumed the move after a one-day rest.

LUV 05/27 Test 50 16.08 -0.09 16.45 20.45 2M 3.6M 15.35
Buy Not Hit. Getting ready as it continues to work through the handle.

MAT 05/20 Put 21.4 -0.08 21.3 19.45 1.3M 2.5M 21.95
Current. Still working below the 10 day MVA, but it needs to fall.

MDCO 05/10 Test 18 23.8 +0.49 21.25 25.48 908K 825K 21.65
Current. Still working higher after the strong 50 day MVA bounce.

MME 04/30 BO 46.94 -0.12 45.65 54.45 384K 634K 45.88
Current.

MSFT 01/11 A Wedge 24.88 +0.24 26.62 30 61M 57M 25.55

MVSN 05/31 Rv H&S 19 +0.18 19.59 23.55 404K 1M 18.22
Buy Not Issued. Not bad as it still works in the pattern.

NTES 04/01 Cup 32.91 +3.11 17 27 2.6M 1M 29
Current. Short squeeze alert on this one Tuesday, and it was up on strong volume off the 18 day MVA.

NVDA 05/08 Test BO 25.23 +0.51 22.62 27 13M 11M 23.15
Current. May have ended the test, holding 24 on the low.

OVTI 02/24 Cup hdl 32.58 -0.78 19.05 31 4M 1.2M 31.05
Current. Gapped lower but held the 18 day MVA and bounced back. We will see if it can hold on and use the 18 day once again as support.

QLGC 05/17 Test BO 49.8 +0.97 46.78 54 5.5M 8M 46.25

QLGC 03/15 Test BO 49.8 +0.97 38.85 45 5.5M 11M 46.25
Current.

QLGC 11/07 Test BO 49.8 +0.97 41.4 50 5.5M 25M 46.25

QLGC 08/17 CCall 49.8 +0.97 36.48 0 5.5M 12M 46.25
Current.

RCII 01/11 Test BO 68.71 +0.22 0 0 599K 0 63.75

RGEN 04/07 Test 18 6.06 -0.2 4.84 7.1 153K 132K 5.96
Current. Let it ride as it managed to recover and hold the 18 day MVA.

RMBS 04/09 A Wedge 17.55 +0.04 17.55 21.45 1.4M 6.8M 15.94
Current. Tapped the 10 day MVA on the low and rebounded. Being stingy with the gains, and it will be ready for another move soon.

RRC 06/02 Flat 6.48 +0.16 6.5 8.06 433K 200K 6.12
Current. Solid volume break higher.

SCSS 04/26 Cup hdl 15.91 -0.09 12.22 16 266K 696K 14.75
Current. Still working over the 10 day MVA on its third short term MVA test.

SHRP 05/23 Cup hdl 23.24 -0.22 22.06 26.55 174K 350K 20.52
Buy Not Issued.

SIGM 05/06 Cup hdl 11.09 +0.2 7.58 9.55 826K 125K 9

SINA 05/22 Cup hdl 15.86 +0.84 14.75 17.75 5.2M 2.5M 13.96
Current. Bounced back up off the 10 day MVA on even stronger volume than the Monday selling.

SINA 04/12 Cup hdl 15.86 +0.84 9.35 13.45 5.2M 2.5M 13.96
Current.

SNUS 06/02 FlyPlat 3.45 -0.55 4.28 5.95 403K 130K 3.98
Buy Not Hit. Tanked with just a day on the report. Dropping.

SOHU 03/20 Dbl btm 28.37 +2.51 10.55 21.45 3.9M 800K 24.75
Current. Nice rebound on even stronger volume.

STX 05/24 Test BO 14.86 -0.68 13.95 16.75 2.2M 2.9M 13.55
Current. Fell to the 10 day MVA on the low but held its ground.

TEK 05/20 Cup hdl 21.35 +0.29 20.44 24.45 539K 500K 20.22
Current. Looks ready for more with a higher volume move.

TEVA 01/11 A Wedge 49.85 -0.1 0 0 2M 5M 0

TSCM 06/03 Test BO 5.05 -0.2 5.32 6.55 112K 225K 4.95
New.

TSCO 06/03 Rv H&S 47.26 +1.26 46.85 55.25 379K 603K 44
Current. Nice break over resistance though it could have used more volume.

TSCO 04/24 Cup hdl 47.26 +1.26 43.75 52 379K 603K 42.85
Current.

TSCO 04/03 Rv H&S 47.26 +1.26 38.6 44.38 379K 577K 42.85
Current.

TXN 05/28 Cup hdl 20.62 +0.52 20.85 24.75 8.4M 16M 19.39
Current. Note bad, up off the 10 day MVA but on lower, below average volume.

UNT 05/28 Cup hdl 22.48 +0.18 22.25 26.75 115K 366K 20.84
Buy Not Issued. No volume on this move.

UNTD 05/29 Flat 23.25 +0.25 23.45 28 1.2M 2M 20.94
Current. Higher but lower volume.

USAI 03/25 Cup hdl 37.4 -0.39 29.12 33.55 10M 8.3M 35.25
Current. Tested the 10 day MVA on the low and recouped much of the loss.

UTHR 04/30 Cup hdl 20.59 +0.13 18.12 21.75 177K 226K 19
Current. Still working higher after its third bounce.

VRTS 08/19 CCall 27.8 +0.37 19.76 20 8.9M 8.5M 24.92
Current. Not falling back much as it rests after the strong move.

WMT 02/05 Put 52.85 +0.39 0 0 7.4M 8.2M 0
Still working laterally over the 200 day MVA.

WWCA 05/22 BO 10.85 -0.24 9.68 13 1M 824K 9.45
What a ballistic move.

XMSR 04/07 Test BO 12.5 +0.76 6.95 8.42 12M 6.5M 10
Current. Nice volume move, breaking out over the recent high at 12.

YHOO 12/11 Test 50 28.55 -0.11 17.32 25 21M 20M 27.55
Current. Testing the 10 day MVA on rising volume.

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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