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Begin part 3 of 3

THE PLAYS

Good movers Wednesday: EAR; EBAY; IDT; AIRN

Wednesday night play results:
LNCR: Rallied with the market but still on low volume.
CTRA: Volume dropped as it could not continue the Monday bounce in a strong market. Not the action we wanted to see.
FDRY: Volume jumped as it moved up off the 18 day MVA. Not quite enough gain, but looks ready for Friday.

New Plays for Friday:

Upside:

Play Date: 12/11/2003
SATH (Summit America TV--$3.37; +0.19; no options): Television stations & Shop At Home Network
http://biz.yahoo.com/p/s/sath.html
STATUS: Testing the breakout. Testing the November breakout from a 17 week base, SATH has eased back to the 50 day MVA (3.18) the past two weeks, holding that key level Wednesday and Thursday, then bouncing off that level on a good volume surge. Accumulation is an outstanding 5 to 1 in the base, (5 up weeks on rising volume to 1 down week on rising volume) setting the foundation for the breakout and subsequent run. Excellent money flow on top of the pattern. We love to enter after the breakout test when the stock starts back up on strong volume as it 'proves up' the breakout by showing investors are ready to move in once more.
Volume: 169.133K Avg Volume: 101.136K
BUY POINT: $3.48 Volume=152K Target=$4.53 Stop=$3.24
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/sath.html

Play Date: 12/11/2003
YHOO (Yahoo!--$42.78; +1.62; optionable): Internet information provider
http://biz.yahoo.com/p/y/yhoo.html
STATUS: Reverse head and shoulders. Looking for YHOO to make us some more money. After a nice surge up to 44, it started moving laterally in the current 9 week base showing positive 2 to 1 accumulation. It came back to test the 50 day MVA (40.88) this week after rallying to the pattern high at 44. Solid bounce up off the 50 day, but we want to see it breakout over the pattern high to move into the stock.
Volume: 9.158M Avg Volume: 13.131M
BUY POINT: $44.35 Volume=17M Target=$53.25 Stop=$42.22
POSITION: YHQ DV - Apr. $42.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/yhoo.html

Look ready for Tuesday: CDIC; IBPI; VLGC

Play Date: 11/10/2003
VLGC (Virologic--$2.75; +0.09; no options): Medical labs
http://biz.yahoo.com/p/v/vlgc.html
STATUS: Testing the breakout. After exploding out of a 22 week base in late November, a move on outstanding volume, VLGC has come back to test the move, holding over the 10 day MVA (2.69). The volume on the move lower has been below average and dropping each session as it tests. Thursday it bounced off that level but volume remained very light. Looking for the stock to continue to bounce higher and follow the strong money flow higher. Excellent position, and again, we love those breakout tests that surge back up on volume as that shows the buyers still demand the stock.
Volume: 457.719K Avg Volume: 1.294M
BUY POINT: $2.14 Volume=1.3M Target=$2.82 Stop=$2.56
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/vlgc.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

COH: Has hit the 50 day MVA and is starting to bounce on above average volume. If it can clear 37 on volume that is the entry point for the next move.

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.

DAR: Double bottom. Used the 200 day MVA as the bottom for two sharply lower legs to the pattern. It has bounced off 2.30 and moved to over 3. Nice move and maybe it will form a handle to shake out some of the fluff from the run up and then provide a good entry point.

IONA: Nice breakout Thursday after reversing a high volume breakout Wednesday. Comes on the heels of a 5 week flat base consolidating a move from 2.50 to 5 from October to November.

Downside:

CERN: Edging back up to the 50 day MVA after dropping through that support last Friday. Lower volume on the rebound, just what you want. Will watch it Friday and see if it sets up for the fall.

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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