trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Thursday: DRIV; QRSI; SWIR; YHOO; AUDC

Wednesday night play results:
GIGM: Still in the pattern, holding on low volume.
TSCO: Could not clear the 18 day MVA as volume backed off.
SWIR: Nice volume burst higher.
VSV: Held steady unable to move after the 18 day MVA bounce.

New Plays for Friday:

Upside:

Play Date: 10/02/2003
SOFO (Sonic Foundry--$1.79; -0.04; no options): Computer application software
http://biz.yahoo.com/p/s/sofo.html
STATUS: Testing the breakout. Yet another breakout test. SOFO broke out of a 3.5 month flat base in mid-September, the base sporting excellent 5 to 1 accumulation (5 up weeks on rising volume to 1 down week on rising volume). SOFO blasted higher on huge trade to end the month, reversing off the high (2.74) on Tuesday and then coming back to test the 10 day MVA (1.78) on much lower trade. Thursday SOFO showed a nice tight doji on the 10 day, and after a pullback that can indicate a change in direction is coming. We want to pick it off as it rebounds on stronger trade.
Volume: 370.17K Avg Volume: 169.136K
BUY POINT: $2.05 Volume=395K Target=$2.74 Stop=$1.76
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/sofo.html

Play Date: 10/02/2003
AXCA (Axcan Pharma--$13.9; +0.18; no options): Drugs
http://biz.yahoo.com/p/a/axca.html
STATUS: Double bottom w/handle. AXCA is in the handle of a 4 month base sporting strong 5 to 1 accumulation. The handle looks solid with AXCA coming back to test and hold the 50 day MVA (13.62) and then risinge. Volume shot higher as it tested this level, indicating a lot of support coming in to hold it above that level. Thursday volume spiked higher again as AXCA jumped off the 50 day. Money flow is strong and moving higher ahead of price even as it works laterally and lower in the handle. A very solid pattern, and we are looking for the breakout soon. Aggressive positions can be taken on a high volume move over 14, but that would be a parital position with the rest of the buy coming on a move over the handle high at 14.70.
Volume: 508.9K Avg Volume: 131.318K
BUY POINT: $14.82 Volume=225K Target=$17.78 Stop=$13.82
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/axca.html

Continuing plays that look ready:

Play Date: 09/17/2003
NXTL (Nextel--$19.84; +0.33; optionable): Wireless communications
http://biz.yahoo.com/p/n/nxtl.html
STATUS: Cup w/handle. NXTL continues to move laterally over the 18 day MVA (19.55), forming up again after trying the breakout a week back. It tested the 50 day MVA (18.87) Wednesday and then rebounded on strong volume; that indicates a lot of buyers came in at that level. A very good pattern continues, and we are waiting for the next high volume break over the recent highs to move on for new or additional positions.
Volume: 17.649M Avg Volume: 17.811M
BUY POINT: New: $20.64 Volume=24M Target=$24.75 Stop=$18.96
POSITION: FQC AD - Jan. $20c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/nxtl.html

Continuing that also look solid: NYB; ORCC; SIAL; TLCV; TUES all still look good.

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SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they set up well. Right now they are not performing too well with the exception of AVID.

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

OCR 08/09 Test 50 35.82 -0.18 0 0 810K 0 0
OCR continues to form a nice handle to its 8 week cup with handle base. Looks solid and we are just waiting for the breakout on strong volume. Move over 36.54 on volume of 1.2M.

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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.

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