trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Thursday: SBUX

Wednesday night play results:
MDC: Tanked early on volume but rallied for a gain. Needs to fail at the 50 day.
ENTU: Gapped higher but gave back the move when the market fell back. Low volume, still in good shape.
PWAV: Not doing it, heading below the 18 day MVA.

New Plays for Friday: Some great looking stocks that held up well during the selling, setting up for the next move.

Play Date: 01/29/2004
BKHM (Bookham Technology--$3.04; 0; no options): Semiconductors
http://biz.yahoo.com/p/b/bkhm.html
STATUS: Test breakout. Certain niche players continue to perform well, and BKHM is using the pullback to test its strong volume breakout from its 12 week double bottom with handle base. It rallied to 3.55 and then started this low volume pullback. Even when the market was selling on volume, trade remained low on BKHM as it faded to test the 18 day MVA (2.97). It tested well below the 18 day Thursday and then rebounded for a slight gain on a big volume spike. Accumulation is strong at 3 to 1 (3 up price weeks on rising volume to 1 down price week on rising volume) and money flow is remaining very strong even as BKHM makes this test. Very nice, and the volume spike makes it look ready.
Volume: 5.859M Avg Volume: 1.825M
BUY POINT: $3.28 Volume=2.7M Target=$4.12 Stop=$3.05
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/bkhm.html

Play Date: 01/29/2004
CYTC (Cytyc--$15.20; +0.96; optionable): Medical instruments
http://biz.yahoo.com/p/c/cytc.html
STATUS: Cup w/handle. As the rest of the market sold, CYTC was making a breakout move, gapping higher on strong earnings. The move was set up by the excellent 6 to 2 accumulation in the 4.5 month base. The base formed over the 200 day MVA on the low, a sign that this support level was used to accumulate some shares as opposed to selling off and breaking it. This is important institutional support; they either buy in at this point or they sell. If they sell, it is hard for a stock to recover anytime soon. It was a volatile session even with the strong news as CYTC tapped the 10 day MVA (14.66) on the low and rebounded to close where it opened. Looking for another test of 15 and then a turn back higher on continued strong volume.
Volume: 3.004M Avg Volume: 1.073M
BUY POINT: $15.48 Volume=1.6M Target=$18.62 Stop=$14.42
POSITION: YQK EC - May $15c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/cytc.html

Play Date: 01/29/2004
WWCA (Western Wireless--$22.18; +0.10; optionable): Wireless telecom
http://biz.yahoo.com/p/w/wwca.html
STATUS: Breakout test. A very nice test of the early January breakout from a 16 week more or less flat base showing excellent 5 to 1 accumulation. Volume surged as WWCA broke from the pattern and it slid back as the stock did the same. Thursday WWCA showed a very strong volume surge as it reached below the near support at the 18 day MVA (21.71) and roared back up to hold over that level and post a slight gain. Money flow remained solid on the pullback, and we are looking for WWCA to rebound from this first test of the breakout, and provide plenty more upside.
Volume: 2.887M Avg Volume: 1.318M
BUY POINT: $22.62 Volume=2M Target=$27.15 Stop=$21.42
POSITION: WRQ EX - May $22.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/wwca.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

AVID: Was setting up nicely and then crahsed through the 50 day MVA on huge trade.

DIS: Had a good day. After hours PIXR told them to go find Nemo, and DIS was down a couple of points after hours.

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.

Upside:

ATSI: Medical appliance stock that we have been watching as well. Broke from a flat base to start the month and is working laterally over the 10 and 18 day MVA, trying to set up for an extension of the breakout.

Downside:

TLAB: Broke higher with the other telecom former high fliers, but peaked with NASDAQ. It has tumbled below the short term MVA, rebounded slightly, and today tapped at the 50 day MVA. It is extended to the downside; another bounce higher toward 9.50 that fails is an aggressive entry point as the 50 day MVA is at 8.80.

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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