stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Tuesday good movers: BEV; CKR; INTC; MROI; MRVC; ORCC; QCOM; SPRT; UNTD; YHOO

Monday night play results:
CKR: Strong volume break higher.
ORCC: Another outstanding breakout on volume.
IRM: Doji at the 10 day MVA. Looks ready to fall again.

New Plays for Wednesday:

Upside:

Play Date: 09/16/2003
LSI (LSI Logic--$11.55; +0.35; optionable): Semiconductors
http://biz.yahoo.com/p/l/lsi.html
STATUS: Ascending triangle. LSI is consolidating the breakout from an 8 month base from December to July. After the breakout it ran almost to twelve at the end of August, and has since moved laterally, making higher lows over the 18 day MVA (11.06) while holding recurring high at roughly 11.85. It has moved laterally now for three weeks, building pressure from below as it is squeezed against the highs at 11.85. This is the watermelon seed effect where it gets squeezed enough so that it squirts higher. We are looking to move in when it squirts.
Volume: 3.32M Avg Volume: 5M
BUY POINT: $11.92 Volume=6M Target=$14.32 Stop=$11.03
POSITION: LSI AB - Jan. $10c (73 delta) &/or Stock
http://www.investmenthouse.com/cd/lsi.html

Play Date: 09/16/2003
NERX (Neorx--$3.68; +0.31; no options): Diagnostic substances
http://biz.yahoo.com/p/n/nerx.html
STATUS: Cup w/handle. NERX is making the breakout from a 4 month base sporting some nice 4 to 2 accumulation (4 up price weeks on rising volume to 2 down price weeks on rising volume), surging Tuesday on a the best volume in two weeks. The action in the base was solid with low volume at the bottom, rising volume as it moved back up, and then very low volume as it moved laterally over the 10 day MVA (3.29) as it formed the handle where it shook out the last sellers. Tuesday it shot higher on a very strong volume surge. Excellent money flow and relative strength is moving toward a breakout as well in support of the move. Looking at positions on a further move on continued solid volume.
Volume: 368.391K Avg Volume: 103.863K
BUY POINT: $3.78 Volume=156K Target=$4.85 Stop=$3.28
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nerx.html

Continuing plays that look ready:

Play Date: 09/08/2003
FSII (FSI International--$5.22; +0.12; no options): Chip equipment
http://biz.yahoo.com/p/f/fsii.html
STATUS: Testing the breakout. FSII broke higher on a strong volume surge 6 sessions back and has then faded back to test that move, holding the 10 day MVA (5.14) and the breakout. Volume started higher Tuesday as FSII looks ready to make the move. Money flow is leading higher. Want to see a break higher on another volume surge that holds toward the close.
Volume: 251.3K Avg Volume: 212.727K
BUY POINT: New: $5.55 (orig. $5.43) Volume=320K Target=$6.92 Stop=$5.02
POSITION: - Stock (Sept. options only)
http://www.investmenthouse.com/cd/fsii.html

Continuing plays that still look good: AUDC; ASPT; IRM; NEOF; SBUX; SETL; SSYS; YHOO

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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

AVID 08/09 Test 18 52.24 -0.47 0 0 533K 0 0
Nice pullback to test the 18 day MVA. Looks ready on a volume move up from here.

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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.

stock recommendation
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