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Begin part 3 of 3
THE PLAYS

Good movers Tuesday: EAR; TGA; FDO

Monday night play results:
AIR: More solid trade as it edged higher on the breakout.
FDO: Gapped down on volume.
LNCR: Gapped down but rallied back flat. Still struggling below resistance.

New Plays for Wednesday:

Upside:

Play Date: 12/16/2003
NGAS (Daugthery Resources--$5.46; +0.6; no options): Oil & gas drilling, exploration
http://biz.yahoo.com/p/n/ngas.html
STATUS: Double bottom w/handle. NGAS is making the breakout move from a 25 week base showign strong 7 to 3 accumulation. The pattern is rather flat though there are two definite lower legs. After forming the second leg late November, NGAS started back up as volume surged above average. Money flow is huge as NGAS makes the breakout move on some outstanding trade. Ready to move in on a continued breakout.
Volume: 765.566K Avg Volume: 104.636K
BUY POINT: $5.55 Volume=195K Target=$7 Stop=$5.16
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ngas.html

Play Date: 12/16/2003
ONNN (On Semiconductor--$6.56; +0.54; no options): Semiconductors
http://biz.yahoo.com/p/o/onnn.html
STATUS: Breakout test. ONNN broke out of a 10 week base in late November and surged to 7. It started the month coming back to test the move, holding roughly at the 18 day MVA (6.05). After moving laterally along that level last week it jumped higher Tuesday on a sharp volume increase. Solid 4 to 2 accumulation in the base and money flow has turned sharply higher and is ready to lead the stock higher in a continuation of the breakout. Nice.
Volume: 3.445M Avg Volume: 2.298M
BUY POINT: $6.78 Volume=3.4M Target=$8.18 Stop=$6.22
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/onnn.html

Downside:

Play Date: 12/16/2003
EV (Eaton Vance--$34.7; -0.1; optionable): Asset managment
http://biz.yahoo.com/p/e/ev.html
STATUS: Put. EV was performing quite well, breaking out of a 4 month flat base in mid-November and running to 38. It then tumbled 4 sessions back, falling through the 50 day MVA (35.40) on huge trade. It has edged back up toward that key level, but looks to be failing well below that point. Money flow is diving and some really heavy distribution. It rallied back off the lows Tuesday (34.25) but is still struggling. Looking for it to fail here at 35 and continue the move lower.
Volume: 514K Avg Volume: 178.636K
BUY POINT: $34.54 Volume=500K Target=$32.54 Stop=$35.55
POSITION: EV NG - Feb. $35p (-53 delta)
http://www.investmenthouse.com/cd/ev.html

Look ready for Wednesday: RWY; VLGC

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.

Still looking for some fresh blood. Please forward any favorites that you feel would be good, solid inserts.

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

XMSR: Gapped higher Monday but sold off hard. Held Tuesday with a doji over 22. Kind of dicey right now for new positions.

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.

WITS: Nice uptrend. Broke higher Friday on volume, rallied Monday but rolled over. Hung right in there Tuesday after testing the 18 day MVA. Up from here on volume.

TRPH: Testing the breakout from a 10 week base. The 10 day MVA is rising to meet it. That should send it higher.

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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