trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Tuesday: ADCT; AMSC; AUGT; CAMD; CTRA; GNLB; IVIL; KEI; NANX; NOOF; NXG

Monday night play results:

AUGT: Even better volume as it broke out.
NANO: Took a breather. Still in a good pattern.
NXG: Nice volume breakout to a new high.

New Plays for Wednesday:

Play Date: 01/06/2004
ESIO (Electro Scientific--$25.71; -0.11; optionable): Electronics
http://biz.yahoo.com/p/e/esio.html
STATUS: Cup. ESIO is in a 9 week base that formed mostly at the 50 day MVA (23.71). Monday the stock gapped higher on very strong trade, taking it to the top of the pattern. Tuesday it took a breather on lower though still very strong volume. Accumulation in the pattern is excellent at 6 to 1 (6 up price weeks on rising volume to 1 down price week on rising volume). Money flow is also very strong. ESIO looks as if it is ready to form a handle here at the top of the pattern, a lateral and lower move on lighter volume. This is where those that bought at the high in November bail out. Once they are gone, if the pullback was on low volume, it is clear to make the breakout. We will be patient and wait for the move to develop. If it rallies form here on strong trade we will start some positions.
Volume: 373.489K Avg Volume: 159.863K
BUY POINT: $26.33 Volume=240K Target=$31.62 Stop=$24.49
POSITION: EQO FE - June $25c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/esio.html

Play Date: 01/06/2004
OPLK (Oplink Communications--$2.65; -0.05; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/o/oplk.html
STATUS: Cup. OPLK is forming a 13 week cup base, moving off the lows at 2 the past week as volume starts to surge, coming in well above average the past 3 out of 4 sessions. Money flow is very strong, rallying ahead of price. Accumulation is an outstanding 4 to 1. It too may form a handle at this level and then make the breakout. Maybe. We are willing to take positions on a continued strong volume move.
Volume: 1.927M Avg Volume: 804.227K
BUY POINT: $2.81 Volume=1.2M Target=$2.54 Stop=$2.59
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/oplk.html

Play Date: 01/06/2004
PTEK (PTEK Holdings--$9.56; +0.09; optionable): Telecom services
http://biz.yahoo.com/p/p/ptek.html
STATUS: Flat base. PTEK is moving up toward the top of its 12 week flat base. Unlike the other moves up to the top of the pattern, this one is showing a tremendous volume surge the past two sessions. Accumulation is solid at 4 to 2 and money flow is rising up ahead of the price. May sidestep some here near the top of the base at 10, forming a handle. We will look for a break over the Tuesday high as that should be the top of any handle. The handle is where the folks that bought at the top of the range get out 'even', selling as the stock approaches the old high. They see it fade back and sell. Once they are gone the overhead supply is cleared out and the stock can make its move.
Volume: 1.819M Avg Volume: 943.227K
BUY POINT: $9.78 Volume=1.4M Target=$11.75 Stop=$9.09
POSITION: QTE EB - May $10c (46 delta) &/or Stock
http://www.investmenthouse.com/cd/ptek.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

GTRC: Broke below the 50 day MVA Monday, but after hours reported good news and was up over $3.

LPNT: Nice volume as it tried to break over resistance at 31. It backed off the high but it still looks good.

XMSR: Surging on strong volume. Sales have been huge.

COH: Up off the 18 day MVA on very strong trade. This was the next move to buy into and it still looks good.

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.

NXTP: Nice breakout after a solid 8 week base formed over the 50 day MVA.

ITMN: Working up the 18 day MVA after a mid-December breakout. Moving in small bits.

NVDA: Breaking higher on volume from a lateral consolidation the past week.

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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