trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Monday: OEX; AEIS; ALTI; ARTX; BCON; EPIC; GGNS; OBAS; RWY; SWC; TRPH

New Plays:

Play Date: 12/01/2003
IMOS (Chipmos Technologies--$8.21; +1.34; no options): Chip equipment
http://biz.yahoo.com/p/i/imos.html
STATUS: 18 day MVA test. IMOS broke out of a 21 month base in early November, surging to 8 as it basically doubled on the breakout run. It has come back to test the 18 day MVA (6.77) on very low volume in its first test of the breakout. Holding at the 18 day MVA is where it should hold on the breakout test. Looks like a successful test as Monday IMOS shot higher as volume resumed its surge. It closed at a new all-time high (came public 2 years back), and that gives it room to run higher without any overhead supply. Relative strength broke out and money flow is surging. Looking to pick it up here on a further move.
Volume: 1.601M Avg Volume: 258.136K
BUY POINT: $8.32 Volume=387K Target=$10.38 Stop=$7.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/imos.html

Play Date: 12/01/2003
RECN (RSCS Connection--$27.65; +0.27; no options): International professional staffing
http://biz.yahoo.com/p/r/recn.html
STATUS: Double bottom w/handle. Volume was up to average Monday as RECN continued to work through a 2 week handle to its 3 month base. The handle is the part at the tail end of the pattern where the stock moves laterally on low volume with some lower intraday lows. This is where, after the stock is accumulated in the base, the last sellers are shaken out as the stock looks as if it is going to fail to continue rallying back. When the last sellers are gone, demand is greater than supply and the stock breaks out. Accumulation in the pattern is an excellent 4 to 1 (four up weeks on rising volume to 1 down price week on rising volume). That shows the during the base the stock was being purchased as opposed to being sold. Money flow is rallying up ahead of price as the stock works laterally. We are looking for the stock to breakout on volume and follow the money flow higher.
Volume: 116.516K Avg Volume: 108.636K
BUY POINT: $28.12 Volume=163K Target=$33.75 Stop=$26.98
POSITION: - Stock (Dec. options only)
http://www.investmenthouse.com/cd/recn.html

Look ready for Tuesday: OEX is breaking out of the triangle. WEBM; IBPI; PDYN

Play Date: 11/09/2003
IBPI (Intrabiotics Pharma--$14.65; +0.96; no options): Drugs
http://biz.yahoo.com/p/i/ibpi.html
STATUS: Ascending triangle. After volume completely dried up in the 10 week base the past two weeks, trade 'surged' Monday as IBPI jumped off the 18 day MVA (13.75) that it had used as support for the bottom of the pattern. Solid 4 to 0 accumulation in the base, and we are looking for another volume move to enter. Breakouts from these patterns can be explosive, so we will be ready.
Volume: 84.367K Avg Volume: 239.818K
BUY POINT: $14.22 Volume=358K Target=$17.75 Stop=$13.22
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ibpi.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.

Considering injecting some fresh blood into this section. Please forward any favorites that you feel would be good, solid inserts.

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

AVID: Good volume move back over the simple 50 day MVA. It is working on a cup base, and now we look for a handle to form in the 57 range.

TGT: Showing life, moving over the 50 day MVA on a strong shot of above average volume. WMT may have suffered, but TGT was getting some buying.

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.

TIWI: Nice lateral test of the late October breakout, working over the 18 day MVA on very low, below average volume. Monday volume was higher though still below average as it moved off the 18 day. This is one we looked at before, and we are looking if volume moves over 850K on a further move it would be a good entry point.

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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