stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Tuesday: ALTI; BEV; ONNN; SWC; FSII

New Plays:

Play Date: 12/02/2003
EAR (Hearx--$1.77; +0.07; no options): Medical instruments
http://biz.yahoo.com/p/e/ear.html
STATUS: Cup w/handle. EAR is trying to bust out of a nice little 11 week base sporting some excellent 5 to 1 accumulation (5 up price weeks on rising volume to 1 down price week on rising volume). This sets up the foundation for the breakout and a nice rally after the breakout. EAR formed the baes over the 50 day MVA (1.47), a good point for it to form as it shows buyers coming in to support (i.e., buy) the stock at that point. Money flow is super and relative strength is ready to breakout, an indication of the strength of the stock. It tried the breakout Tuesday but gave back most of it in the late market pullback. A lower priced stock, but plenty of average trade. Looking for it to resume the breakout move on continued strong volume.
Volume: 657.3K Avg Volume: 169.5K
BUY POINT: $1.88 Volume=254K Target=$2.45 Stop=$1.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ear.html

Play Date: 12/02/2003
RCRC (Rc2 Corp.--$21.46; +0.11; no options): Recreational products
http://biz.yahoo.com/p/r/rcrc.html
STATUS: Double bottom w/handle. RCRC is working on the handle of a short, 7 week base that has formed using the 50 day MVA (20.54) as support. That is an important level as big money uses that level to add positions. Accumulation in the base is a solid 3 to 1. Volume has started to pick up the past week, jumping back above average Monday. Money flow is leading higher, and we are looking for the stock to follow. This is actually the handle to a much larger 19 month reverse head and shoulders base, another good accumulation pattern. May not be sexy, but the pattern is solid and is set up for the breakout to send it to an all-time high.
Volume: 135.301K Avg Volume: 112.681K
BUY POINT: $22.32 Volume=169K Target=$26.78 Stop=$20.97
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/rcrc.html

Look ready for Wednesday: WEBM; PDYN; GOLD

Play Date: 11/22/2003
GOLD (Randgold Resources--$28.05; +0.25; optionable): Gold mining
http://biz.yahoo.com/p/g/gold.html
STATUS: Cup w/handle. GOLD is moving up toward the breakout, hitting that point intraday but backing off with the rest of the market. Solid volume, moving back above average as it made the breakut attempt. A very nice looking 10 week base that formed over the 50 day MVA (24.44), the point where investors will move in to buy positions. Super money flow, relative strength, and accumulation. Ready to make the move with gold moving over $400.
Volume: 605.797K Avg Volume: 453.409K
BUY POINT: $28.18 Volume=680K Target=$33.95 Stop=$25.82
POSITION: QUD CF - Mar. $30c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/gold.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

XMSR: Working laterally at the September and October highs on low, below average volume. It is in the process of trying to move up off the bottom of its 4 month base and form the right side of the cup pattern. That will give it a nice move up toward 45, enough for a nice short term gain ahead of a breakout.

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: It did indeed make the breakout on some huge volume.

VAR: A huge winner over the past year, it just broke out of a 3 month base. Extended right now.
ODSY: Just made the breakout from a 3 month cup with handle. A test will provide a good entry point.
DHI: Homebuilder that broke out in October and is running up the short term MVA. Best next buy point will be on a test of the 50 day MVA.

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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