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Begin part 2 of 3

THE PLAYS

Plays from the Wednesday night report:
ERES: Gapped higher but sold it back most of the session so we stayed away.
PEGA: Continued the move higher but extremely volatile session so again we stayed away.
RETK: Volume backed off as it gapped higher. Decided to wait for a test.
SINA: Gapped higher and faded back most of the session on low trade. Will let it form back up.

New Plays:

Play Date: 01/08/2004
EONC (Eon Communications--$3.96; +0.27; no options): Internet service provider
http://biz.yahoo.com/p/e/eonc.html
STATUS: Test 18 day MVA. EONC broke out of a 12 week reverse head and shoulders in December, tested, and is now on the move back up. It has run into some resistance at 4, fading back this month from that level. It held the 18 day MVA (3.65) on the low in this test and then shot higher Thursday on the strongest volume in a month. Excellent 6 to 1 accumulation (6 up price weeks on rising volume to 1 down price week on rising volume) in the base, setting the foundation for a good breakout and rally. The 18 day test is a good place to pick up a breakout on the test. Money flow is leading the way, and we are looking to pick it up on a move over 4.
Volume: 380.779K Avg Volume: 159.772K
BUY POINT: $4.09 Volume=240K Target=$5.12 Stop=$3.73
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/eonc.html

Play Date: 01/08/2004
PHTN (Photon Dynamics--$42.46; +2.79; optionable): Chip equipment
http://biz.yahoo.com/p/p/phtn.html
STATUS: Reverse head and shoulders. PHTN is making the breakout move from a 9 week accumulation pattern. It formed the base over the 50 day MVA (38.02), a good support level for a base to form as it shows big money supporting it at that key level. Money flow is excellent and PHTN is making the move to follow it. We will take a half position on the move and then look to complete the buy on the test.
Volume: 749.848K Avg Volume: 291.863K
BUY POINT: $42.62 Volume=438K Target=$50 Stop=$49.94
POSITION: PDU DV - Apr. $42.50c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/phtn.html

Play Date: 01/08/2004
TUTR (Plato Learning--$11.73; +0.43; optionable): Computer and web based instruction for grades K to 12.
http://biz.yahoo.com/p/t/tutr.html
STATUS: Ascending triangle. TUTR broke out of a long 14 month base in mid-October and rallied to 11 where it stalled and formed the current 12 week base. It has used the 50 day MVA (10.30) as support for the base, making higher and higher lows as it builds pressure under a constant top at 11.30. Thursday volume surged as TUTR broke over that resistance, starting the breakout. Accumulation in the base is a strong 4 to 1. Strong money flow and relative strength is ready to breakout as well, a good indication of the solid move. Looking to pick up positions on a further move on volume as it is not extended.
Volume: 311.421K Avg Volume: 189.136K
BUY POINT: $11.92 Volume=284K Target=$14.32 Stop=$10.98
POSITION: UWP DB - Apr. $10c (77 delta) &/or Stock
http://www.investmenthouse.com/ci/tutr.html

End part 2 of 3

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