stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: ARTX; GEMS; JNPR; QLGCJRWY

Tuesday night play results:
CRDS: Blasting out of the base ahead of CSCO earnings, and will benefit from them Thursday.
RWY: A super volume breakout from the sweet little base.

New Plays for Wednesday:

Play Date: 11/05/2003
UMC (United Microelectronics--$5.65; +0.29; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/u/umc.html
STATUS: Ascending triangle. UMC has formed a tight 8 week pattern, building higher lows over the 50 day MVA (5.02) with a constant top at 5.50. That is a pattern that builds pressure from below and leads to explosive breakouts. Wednesday UMC started to make that breakout on a big volume surge. Accumulation is an outstanding 5 to 0 (5 up price weeks on rising volume to 0 down weeks on rising volume) on the base and relative strength broke out on the move, a good indication of a solid breakout.
Volume: 10.246M Avg Volume: 4.344M
BUY POINT: $5.72 Volume=6.5M Target=$7.45 Stop=$5.32
POSITION: UMC CA - Mar. $5c (78 delta) &/or Stock
http://www.investmenthouse.com/cd/umc.html

Play Date: 11/05/2003
VITR (Vitria Technology--$6.12; +0.08; no options): Business software
http://biz.yahoo.com/p/v/vitr.html
STATUS: Double bottom w/handle. Working on the handle to its nice 7 week base showing solid 3 to 1 accumulation. It formed the double bottom at the 50 day MVA (5.39), a good place for big money to support a stock. Money flow is moving up ahead of price as it moves laterally. Solid pattern and we are going to wait for volume to kick in and drive the stock through the buy point.
Volume: 106.6K Avg Volume: 135K
BUY POINT: $6.52 Volume=202K Target=$8.49 Stop=$5.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/vitr.html

* * *
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

DIS 08/09 Test 50 23.02 +0.27 22.06 26.48 5.5M 9M 21.12
After moving laterally the past week DIS looks ready to make the break over 23.

* * *

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.

TEO: Broke out of a nice base six sessions back and has not really tested yet. Good on a test of the 10 day MVA 7.67.

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
stock option