stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers Tuesday: AMSWA; EGOV; NXG; OPSW; PDYN

Monday night play results:
ALGN: Tried to continue the move but just could not make the breakaway we were looking for.
AMT: Turned back right at the breakout on rising, average volume.

New Plays for Tuesday:

Play Date: 11/04/2003
CRDS (Crossroads Systems--$3.24; +0.23; no options): PC networking
http://biz.yahoo.com/p/c/crds.html
STATUS: Cup w/handle. This is the third base CRDS has formed off of the 2002 low. It is a 9 week pattern showins excellent 3 to 1 accumulation and very good price/volume action: very low as CRDS moved along the bottom of the base at the 50 day MVA (2.57), using that key support to build the base on; then swelling as it moved up on rising volume. Money flow is strong and relative strength is making the breakout as CRDS moves up off the 10 day MVA (2.95) on rising though still below average volume. Very solid pattern moving into CSCO's earnings after the Wednesday close, and it will no doubt key off of what CSCO says. It was a strong quarter for Cisco.
Volume: 238.227K Avg Volume: 312.545K
BUY POINT: $3.36 Volume=469K Target=$4.35 Stop=$3.12
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/crds.html

Play Date: 11/04/2003
RWY (Rent-Way--$6.04; +0.2; no options): Rent to own stores
http://biz.yahoo.com/p/r/rwy.html
STATUS: Cup w/handle. A short (7 week) but very nice pattern that has formed over key support at the 50 day MVA (5.55), using that as support for the bottom of the cup. Accumulation is a solid 2 to 1 (2 up weeks on rising volume to 1 down week on rising volume), setting the stage for solid breakout. Money flow is running up ahead of the price as it moves laterally at 6 on lower volume (the lateral move that makes up the handle). Relative strength is rising for the breakout, another good indication of strength. Volume started up Tuesday as it started off the 10 day MVA. Just looking for a volume surge through the breakout point.
Volume: 84.5K Avg Volume: 97.318K
BUY POINT: $6.24 Volume=146K Target=$7.85 Stop=$5.79
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/rwy.html

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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.

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

KKD: Trying to form a reverse head and shoulders pattern spanning September to Tuesday. Needs a strong volume move over 45.

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SUBSCRIBER WATCHLIST

We continually receive ideas for potential plays from our subscribers. Many times they are already on our watchlists, other times not. We always take a look at them and sometimes find a few pearls. This weekend we are starting a new feature where we include some subscriber choices that could develop into plays. We are not necessarily endorsing these, but want to provide a forum for subscribers with ideas that may appeal to their portfolio. Typically we will put these on without commentary, but if we see something we really like or dislike we will point it out. That way we can maybe come up with some new plays, find some plays that may fit your style, and have another great educational tool to discuss problems or good aspects about stocks our subscribers are looking at.

ULTI, VYYO, TGAL, BGC, CUB, PPE

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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