trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Monday: ACO; AIR; AZPN; ALTI; GEB; EBAY; HL; INAP; IVIL; JMAR; KEI; MTZ; NANX; PAL; PTNR; RECN

Weekend play results:

GEB: Solid volume breakout.
JNPR: Good volume but closed off the high. It will be ready for the next wave of breakouts.
NANX: Gapped higher on outstanding trade.

New Plays for Tuesday:

Play Date: 01/05/2004
AUGT (August Technology--$20.47; +1.77; no options): Scientific & technical instruments
http://biz.yahoo.com/p/a/augt.html
STATUS: Flat base. AUGT started a breakout move from a 9 week flat base Monday, rallying off the 50 day MVA (18.87) on strong, above average volume. Accumulation in the short base is a solid 2 to 0 (2 up price weeks on rising volume to 0 down price weeks on rising volume). Money flow is surging higher ahead of price, and relative strenght is ready to breakout in support of the move. This is a move to an all-time high meaning there is no overhead supply or resistance to hold it back.
Volume: 603.202K Avg Volume: 241.636K
BUY POINT: $20.72 Volume=362K Target=$24.85 Stop=$19.27
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/augt.html

Play Date: 01/05/2004
NANO (Nanometrics--$16.13; +1.13; no options): Scientific and technical
http://biz.yahoo.com/p/n/nano.html
STATUS: Reverse head and shoulders. Kind of a ragged pattern, but a definite 14 week pattern showing outstanding 6 to 0 accumulation. The base formed over the 50 day MVA (14.14), holding that level on the lows and showing that institutions were stepping in to support the stock at tha tpoint. It has shown two strong volume surges on up sessions in the past week, solid price/volume action. Monday it was moving on that strong volume, and we are looking for continued strong trade on the breakout move.
Volume: 676.333K Avg Volume: 343.59K
BUY POINT: $16.65 Volume=500K Target=$20 Stop=$15.48
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nano.html

Play Date: 01/05/2004
NXG (Northgate Exploration--$2.23; +0.18; no options): Gold
http://biz.yahoo.com/p/n/nxg.html
STATUS: Flat base. NXG was a new issue in July, and we have been in it before. A dive lower in mid-December sent us to the exit, but it has formed up again with a new 9 week base sporting excellent 3 to 0 accumulation. Strong money flow and relative strength ready to make a breakout with the stock that made an excellent volume breakout Monday.
Volume: 1.726M Avg Volume: 1.079M
BUY POINT: $2.26 Volume=11M Target=$2.94 Stop=$2.05
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nxg.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, COH, DIS, GTRC, KKD, LPNT, OCR, TGT, UTSI, XMSR

COH: Holding over the 18 day MVA after that 50 day test. It has moved laterally the past two weeks and Monday it started up on rising though still below average volume. A break over 38 on 2 million or more shares is the buy point.

DIS: Making the breakout move on strong trade. The House of Mouse is looking good.

UTSI: Making the next important move on strong trade.

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. We are including 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.

DGII: Nice 8 week triangle moving up the 50 day MVA (8.83). Trying to make the breakout on rising trade, but volume is still below average. Needs a good volume shot.

Downside:

IPAS: A new issued in July that rallied to 28 but rolled over and has been in a downtrend since late September. Just tapped the 18 day MVA last week and rolled over on rising volume. Tanked on heavy volume Monday. A bounce back up toward 16 sets the next down move.

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.

trade stock
stock recommendation