us stock market, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: ACLS; AMT; ATRM; MIPS; MODI; RHAT

Tuesday night play results:
ACLS: Nice volume as it broke through resistance.
CEN: Paused right below the breakout point.
MODI: Continued the strong break higher.
MXIM: Paused at the breakout point.
SSP: Volume rose as it continued the break over the 50 day EMA.

New Plays:

Upside:

Play Date: 05/26/2004
EFJI (EFJ, Inc.--$7.45; +0.96; no options): Telecom equipment
http://biz.yahoo.com/p/e/efji.html
STATUS: Reverse head and shoulders. Taking another run at this one as it bolted higher Wednesday on a strong volume surge. The move pushed it toward the breakout from its 17 week base sporting excellent 7 to 2 accumulation (7 up price weeks on rising volume to 2 down price weeks on rising volume). Money has moved into the stock during this base, and it looks as if more strong buyers are moving in now as it jumps off the 50 day EMA (6.37). Super money flow is leading the way and it looks to be heading to a new high.
Volume: 595.686K Avg Volume: 234.181K
BUY POINT: $7.58 Volume=300K Target=$9.11 Stop=$6.98
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/efji.html

Play Date: 05/26/2004
MACE (Mace Security Intl.--$6.23; +1.50; optionable): Specialty chemicals
http://biz.yahoo.com/p/m/mace.html
STATUS: 50 day EMA test. Volume surged Wednesday as MACE looks ready to resume the move higher after a rather wild ride in April. It broke out early that month and surged over 14 intraday before reversing and giving back almost the entire move. It held up at the 50 day, moved laterally for three weeks, and then started this move Wednesday. Money flow is screaming higher ahead of price and we are looking for to MACE to follow the money. Momentum play, but this stock has shown it has a lot of momentum.
Volume: 13.38M Avg Volume: 3.533M
BUY POINT: $6.39 Volume=4M Target=$9 Stop=$5.94
POSITION: QXA IA - Sept. $5c (74 delta) &/or Stock
http://www.investmenthouse.com/ci/mace.html

Play Date: 05/26/2004
VISG (Visage Technology--$10.34; +1.02; optionable): Identity verification systems
http://biz.yahoo.com/p/v/visg.html
STATUS: Double bottom. Explosive move in March and April has now corrected into the current 6 week pattern that formed over the 50 day EMA (8.95). Using the 50 day is a good sign of support as big money steps in to buy at that level. Volume dried up as it came back to form the right leg of the base and then jumped this week as it started the move higher, really kicking into gear Wednesday. Money flow is way out in front leading the stock higher, and we are looking for VISG to make the break over the 'hump' in the double bottom and give us the entry point as it clears that resistance.
Volume: 3.844M Avg Volume: 2.372M
BUY POINT: $10.54 Volume=3M Target=$13 Stop=$9.78
POSITION: TUM JB - Oct. $10c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/visg.html

Play Date: 05/26/2004
WBSN (Websense--$31.26; -0.27; optionable): Internet software
http://biz.yahoo.com/p/w/wbsn.html
STATUS: Cup w/handle. Volume has started back up as WBSN approaches the breakout point in its 15 week base sporting excellent 6 to 2 accumulation. It held up well as the market sold, working on completing its base. Solid money flow supports the solid pattern as well.
Volume: 256.208K Avg Volume: 301.772K
BUY POINT: $32.12 Volume=453K Target=$38 Stop=$29.94
POSITION: DQH JF - Oct. $30c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/wbsn.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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 in 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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