stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good moves Tuesday: ASTSF; BEV; CRAY; DRIV; EBAY; EGO; HL NSM; TSCO; TZIX

Monday play results:
SINA: Tried to make the move, gapping higher but falling back all session.
GEMS: Strong volume, but could not hold the move.
ASPT: Still moving laterally in the flying plateau.
MLHR: Nice move on a big volume surge.

New Plays for Wednesday:

Play Date: 08/19/2003
AMSC (American Superconductor--$11.77; -0.39; optionable): Superconducting materials & power converters
http://biz.yahoo.com/p/a/amsc.html
STATUS: Testing the breakout. AMSC exploded higher Friday in the power scare on some huge trade. It has spent the past two sessions pulling back to test the gap up point. Tuesday it showed a nice hammer doji that tapped the gap up point on the low (11.32). This was a big breakout from a huge 18 month base. Stocks often come back to fill gaps, but given the strength of this breakout and the lower volume pullback with doji, we are willing to start positions on a move up from here on rising volume. We want to see the volume move back up as that shows buyers have returned to the stock at this point.
Volume: 879.894K Avg Volume: 297.09K
BUY POINT: $12.06 Volume=900K Target=$14.48 Stop=$10.98
POSITION: QAY AV - Jan. $12.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/amsc.html

Play Date: 08/19/2003
IUSA (Infousa--$9.21; +0.21; no options): Proprietary databases for marketing
http://biz.yahoo.com/p/i/iusa.html
STATUS: Flat base. IUSA is working laterally over the short term MVA (18 day MVA at 8.89) though it has made two lower tests to 8 and bouncing back sharply from there. Accumulation in the 6 week lateral pattern is strong at 3 to 0 (3 up price weeks on rising volume to 0 down price weeks on rising volume). Outstanding money flow and relative strength is ready to make the breakout. Volume has been moving higher the past two sessions, and we are looking for IUSA to use the accumulation and money flow to make the breakout.
Volume: 190.662K Avg Volume: 188.681K
BUY POINT: $9.54 Volume=283K Target=$11.48 Stop=$8.86
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/iusa.html

* * *
SUBSCRIBER PORTFOLIO: Here is the revamped portfolio. A very good mix of stocks that will provide some very interesting plays in the weeks and months ahead. Right now we are just putting them in, and when they provide a buy point that is when we will start to move into positions. That is the key to any purchases, i.e., wiaitng for them to provide the entry points and not just a shotgun buy.

AVID, DIS, GTRC, KKD, LPNT, OCR, TGT, UTSI

Play Date: 08/09/2003
GTRC (Guitar Center--$32.25; -0.18; no options): Guitar stores
http://biz.yahoo.com/p/g/gtrc.html
STATUS: Testing the 18 day MVA. GTRC made a strong breakout in early June. It is making the second test of the 18 day MVA (32.02) since that breakout. Stocks tend to run up the short term MVA after a breakout, making 4 to 5 bounces off of that level. It has made an orderly, lower volume pullback to test this level, showing a three dojis on that level. Excellent money flow. Looking for a higher volume bounce up off of this level to enter for the further run higher.
Volume: 323.936K Avg Volume: 496.454K
BUY POINT: $33.06 Volume=700K Target=$41 Stop=$31.75
POSITION:
http://www.investmenthouse.com/cd/gtrc.html

* * *

CONTINUING/WATCHLIST: We sent the list earlier but are sending it again for those wanting the new plays and table in the same document.

LEGEND

DATE: date play first appeared on report.

PLAY: Denotes the type of pattern or play.
Upside play types: A Wedge=Ascending triangle/wedge; BO=Breakout; Cup=Cup base; Cup hdl=Cup w/handle; DB hdl=Double bottom w/handle; Dbl btm=Double bottom; Flat=Flat base; FlyPlat=Flying Plateau; Pennant=Pennant; Rv H&S=Reverse head & shoulders; Saucer=Saucer base; Test 18=Testing 18 day MVA; Test 50=Testing 50 day MVA; Test BO=Testing the breakout (could be 10 day MVA test, etc.)
Downside play types: CCall=Covered Call; DWedge=Descending triangle/wedge; Dbl Top=Double top; H&S=Head & shoulders; Put (generic downside);

PIVOT=Buy point

Tgt=Target stock price for the play. Applies to stock and options.

Vol=Volume for the most recent session.

TgtV=Target volume to enter the play.

Stop=Stop advisory point. This is advisory and we may or may not exit a play if it hits this level depending upon market conditions.

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

ABRX 08/14 A Wedge 23.04 -0.31 24.87 29.88 172K 600K 23.13
Buy Not Issued. Pull back to test the 18 day MVA on lower volume. Broke through the 18 day MVA intraday.

AMZN 05/03 BO 43.57 +0.55 30.3 35.45 10M 12M 39.05
Current. Moved higher on slightly lower volume. Continue to let the stock run for us.

ANSR 08/11 Cup hdl 3.07 -0.13 3.43 4.22 268K 350K 3.19
Current. Continued pull back on higher volume, but held the 18 day MVA. It must hold here or we will exit.

AOS 07/24 Rv H&S 34.31 +0.07 33.05 40 138K 175K 30.94
Buy Not Issued.

ARTG 08/12 Test 50 2.16 +0.06 2.26 2.72 542K 1M 1.98
Buy Not Issued. Made a low volume climb but doji with a volume surge today. Never liked the way this stock was shaping up. Will probably take off until it forms up better.

ASPT 08/09 Test BO 8 +0.01 8.06 10.12 840K 791K 7.38
Current. Doji slightly up on lower volume. Touched the 10 day MVA intraday.

ASTSF 07/12 Cup hdl 7.91 +0.36 6.5 8.25 455K 500K 6.98
Current. Great move up on strong volume.

AVID 08/09 Test 18 49.44 +1.82 0 0 625K 0 0

AVNX 08/14 Flat 4.86 +0.1 4.68 5.92 2.3M 2M 4.26
Current. Continued to move up on increasing volume. Letting the stock run for us.

BDY 07/16 Test BO 25.5 +1.02 19.58 23.25 168K 376K 22.02
Current. Moved up on lower volume. Continue to let the stock run.

BEAS 08/04 Cup hdl 12.74 -0.21 13.88 16.65 5.2M 16M 12.91
Buy Not Hit. Pull back to test the 18 day MVA on lower volume. Broke through the 18 day MVA intraday. Still in good shape

BEAS 07/31 Cup hdl 12.74 -0.21 13.37 16.22 5.2M 16M 12.69
Current.

BEV 07/26 Test BO 6.17 +0.28 5.54 6.94 2.6M 1.4M 5.38
Current. Great move up on strong volume.

BLI 08/14 Cup hdl 17 +0.06 17.18 20.38 806K 750K 15.84
Current. Another doji slightly up on volume surge. This could be another break out.

BMRN 08/07 Put 8 -0.14 8.98 6.95 952K 1.3M 9.75
Buy Not Hit. Moved down on lower volume. Stock needs to rally on low volume before it is a viable play.

CHRD 07/28 Test BO 3.06 +0.05 3.22 4.05 624K 822K 2.99
Current. Moved slightly up on lower volume. Still in good shape.

COLT 07/24 BO 6.3 +0.16 5.3 6.68 125K 200K 5.52
Current. Moved up on higher volume. Let the stock run for us.

CRAY 07/22 Test BO 12.72 +0.37 9.73 11.75 1.5M 1.4M 11.04
Current. Moved up on higher volume. Let the stock run for us.

CY 08/16 A Wedge 16.1 +0.18 15.68 18.78 3.6M 3M 14.22
Current. Continued to move up on but on lower volume.

DIS 08/09 Test 18 22.23 -0.17 0 0 7.9M 0 0

DKS 03/18 DB hdl 41.08 -0.35 23.81 28.42 888K 225K 35.94
Current. Gapped up at the open but closed slightly down on lower volume.

DKS 02/19 DB hdl 41.08 -0.35 22.75 27.35 888K 225K 35.94
Current.

DRIV 08/06 Test 50 24.28 +1.53 24.18 27.48 1.3M 1.7M 22.08
Current. Kept an eye on it and issued it as a bonus alert as
it made a strong volume move off the 50 day MVA.

EBAY 12/12 Test 18 110.23 +1.97 69.45 92 9.6M 12M 105.55
Current. Nice move up on strong volume.

EBAY 10/15 Test 50 110.23 +1.97 62.45 92 9.6M 12M 105.55
Current.

EGO 06/25 Cup hdl 2.32 +0.05 1.88 2.45 394K 210K 2.12
Current. Great move on higher volume. Touched the 18 day MVA intraday.

ESA 08/05 Cup hdl 15.22 +0.3 15.34 18.45 270K 405K 14.44
Buy Not Hit. Nice move up on slightly lower volume. Volume is still below average. Volume will need to increase before we will enter the play.

FARO 08/16 Test 50 10.41 +0.05 10.35 12.12 144K 220K 9.45
Current. Doji slightly up on lower volume. Touched the 10 day MVA intraday.

FLSH 05/22 Test BO 16.5 +0.3 10.55 12.75 322K 195K 14.92
Current. Moved up on higher volume. Continue to let the stock run.

FLSH 05/12 Rv H&S 16.5 +0.3 9.2 10.96 322K 195K 14.92
Current.

GEMS 08/18 Dbl btm 1.65 +0.01 1.74 2.22 469K 300K 1.54
Buy Not Hit. Moved up on volume surge. Waiting to see if movement continues with the volume before we enter the play.

GENZ 08/07 Put 46.21 -0.18 44.05 40 2M 4M 46
Buy Not Issued. Doji on the 18 day MVA on higher volume. Touched the exponential 50 day MVA intraday. Needs to tank on higher volume before this is a viable play.

GMR 07/30 Cup hdl 12 -0.1 12.14 14.45 170K 218K 11.75
Current. Pull back to test the 10 day MVA on higher volume. Still in good shape.

GPT 08/13 H&S 51.14 -0.36 50.02 47.48 501K 600K 51.66
Buy Not Hit. Moved down on slightly lower volume. Touched the exponential 50 day MVA intraday. Needs to fall below the the exponential 50 day MVA on strong volume to be a viable play.

GTRC 08/09 BO 32.25 -0.18 34.12 41 322K 725K 31.73
Buy Not Hit. Pull back slightly below the 10 day MVA on lower volume. Touched the 18 day MVA intraday.

HL 08/04 Cup hdl 6.41 +0.34 6.07 7.28 1.9M 1.7M 5.92
Current. Great move with a volume surge.

INTC 07/31 FlyPlat 26.47 +0.28 25.88 30.95 56M 75M 24.55
Current. Gapped up on lower volume.

KKD 08/09 Cup hdl 49.2 -0.17 45.08 54.25 803K 1M 44.48
Current. Slightly pull back on lower volume.

LPNT 08/09 Rv H&S 28 +0.27 29.06 35 440K 1.3M 27.03
Buy Not Hit. Moved up on lower volume. Stock needs to still have low volume rally to hit buy point.

MERX 07/15 Cup hdl 12 -0.03 10.52 12.75 64K 248K 10.52
Current. Doji slightly down on lower volume. Still in good shape.

MKSI 07/21 Cup hdl 24 +0.15 22.25 27.95 194K 488K 21.68
Current. Doji up on lower volume.

MKSI 07/14 Cup hdl 24 +0.15 22.8 27.95 194K 488K 21.67
Current.

MLHR 08/09 Test BO 22.82 +0.22 22.95 27.42 388K 325K 21.69
Current. Entered the play on the volume surge.

MPS 08/16 Cup hdl 9.08 +0.1 9.75 11.68 870K 677K 9.07
Buy Not Hit. Moved up on slightly lower volume but good volume. If stock continues to rise with volume will enter the play.

NSM 08/13 Cup hdl 26.73 +1.61 24.94 29.94 6.6M 5.3M 23.19
Current. Excellent move on strong volume surge.

OCR 08/09 Test 50 33.8 +0.1 0 0 1.2M 0 0

ONNN 06/21 Test BO 3.7 -0.05 3 3.75 494K 900K 3.18
Target Hit. Took some gain on a nice move.

PCOR 08/13 Cup hdl 2.22 +0.02 2.46 3.12 107K 225K 2.18
Buy Not Hit. Moved up on lower volume. Still in good pattern. Looking for the bounce on volume surge.

PMTI 08/06 BO 6.17 -0.18 6.59 7.91 73K 200K 5.96
Buy Not Issued. Pulled back below the 18 day MVA on lower volume. Pushed up and broke through the 10 day MVA intraday.

PWER 08/12 Test BO 11.75 +0.1 11 13.45 541K 675K 10.02
Current. Doji slightly higher on lower volume.

PWN 07/31 FlyPlat 16.45 +0.15 17.75 21.35 123K 240K 16.51
Buy Not Hit. Doji on 18 day MVA on higher volume. Waiting for the break out on higher volume.

SBUX 07/30 Cup 27.03 -0.2 27.55 33 1.9M 6M 25.94
Buy Not Issued. Gapped up at the open to close negative on slightly higher volume, but still below average. Touched the 10 day MVA intraday.

SBUX 07/01 Cup 27.03 -0.2 26.3 30.94 1.9M 6M 26.45
Current.

SINA 08/18 Test 50 31.47 +0.37 31.94 38 7.5M 10M 29.78
Buy Not Issued. Moved up on higher volume. Gapped up at the open to close lower but still positive. Touched the 10 day MVA intraday.

TGT 08/09 Flat 38.89 +0.17 40.12 48 3.4M 5.7M 37.31
Buy Not Hit. Opened on the exponential 50 day MVA and closed above the 10 day MVA. Volume was slightly lower than the day before

TIWI 08/07 A Wedge 3.55 -0.04 4.06 5.65 46K 689K 3.75
Buy Not Hit. Doji down between the simple 50 day MVA and the exponential 50 day MVA on lower volume. Touched both 50 day MVA intraday.

TSCO 07/29 Test BO 64.6 +2.65 56.12 62.88 630K 494K 54.94
Current. Continues to make a great move on stronger volume.

TSCO 06/03 Rv H&S 64.6 +2.65 46.85 55.25 630K 603K 54.94
Current.

TSCO 04/24 Cup hdl 64.6 +2.65 43.75 52 630K 603K 54.94
Current.

TSCO 04/03 Rv H&S 64.6 +2.65 38.6 44.38 630K 577K 54.94
Current.

TZIX 07/21 Rv H&S 7.5 +0.35 7.7 9.45 170K 200K 6.96
Current. Nice bounce off the 18 day MVA on higher volume.

UNTD 07/12 Test BO 36.15 +1.04 28.8 34.12 1.3M 2.1M 31.62
Current. Nice move up on slightly lower volume.

UNTD 05/29 Flat 36.15 +1.04 23.45 28 1.3M 2M 31.62
Current.

UTSI 08/09 Test 50 43.84 +0.05 41.72 50 1.9M 4.5M 39.95
Current. Opened higher but closed down but still in positive territory on lower volume.

VRTS 08/19 CCall 33.11 +0.91 19.76 20 7M 8.5M 29.06
Current. Good move up on higher volume.

VVTV 07/19 Cup hdl 17.05 +0.05 16.95 20.45 247K 250K 16.39
Current. Doji slightly up on higher volume. Still in great shape.

WTW 08/09 Put 43.51 -0.04 42.24 39.68 652K 800K 43.28
Buy Not Issued. Pull back on higher volume. Broke through the 18 day MVA intraday. Needs to continue the move down on higher 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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