stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Monday night play results:
AME: Strong volume as AME starts the breakout move.
ISON: Move contra market, selling back to the 18 day EMA. Still in the pattern.
SLE: Volume moved up to average as SLE held steady, still ready for the breakout.

New plays for Wednesday:

Upside:

Play Date: 06/08/2004
ASE (Amercian Science & Engineering--$19.90; +0.85; no options): Medical appliances
http://biz.yahoo.com/p/a/ase.html
STATUS: Breakout test. ASE blasted out of a 7 week base to start the month, surging on strong volume to 21. It is now coming back on lower volume, making the test of the breakout. Tuesday it undercut the 10 day EMA (18.50), tapping the April high on the right side of the base and the rebounding on a solid volume surge. Accumulation in the base is a solid 4 to 1 (4 up price weeks on rising volume to 1 down price week on rising volume). Lots of money moving into the stock as it based, and set up the foundation for the breakout. Strong money flow, and it looks ready to continue the move.
Volume: 207K Avg Volume: 98.454K
BUY POINT: $20.38 Volume=150K Target=$24 Stop=$18.95
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ase.html

Play Date: 06/08/2004
SEMI (All American Semiconductor--$10.37; +0.99; no options): Electronic components distributor
http://biz.yahoo.com/p/s/semi.html
STATUS: Cup w/handle. Making the breakout from a 6 week base sporting strong 3 to 0 accumulation. Strong money flow and a relative strength breakout add to a pretty nice picture. SEMI reported strong results in April and shot higher. This is the base that is consolidating that move. Looks ready to continue the move.
Volume: 179.082K Avg Volume: 61.954K
BUY POINT: $10.65 Volume=100K Target=$12.78 Stop=$9.88
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/semi.html

Play Date: 06/08/2004
MACE (Mace Security Intl.--$5.61; +0.09; optionable): Car care and personal security and defense products.
http://biz.yahoo.com/p/m/mace.html
STATUS: Ascending triangle. Taking another look at MACE as it continues to form up a nice 7 week pattern after exploding higher in early April and running over 14 in short order. It fell back and held the 50 day EMA (4.63) on the lows as it started to form the base. It has made a series of higher lows up the 50 day and is now holding over the 18 day EMA (5.26) as it made the last higher low. Accumulation in the base is a strong 3 to 0, indicating money continues to move into the stock. Money flow continues to surge ahead of price. The pattern has tightened the past week as it moves mostly laterally over the 18 day EMA. Looking for a strong break higher on once again strong volume. Good risk/reward level here for the stock.
Volume: 2.795M Avg Volume: 4.36M
BUY POINT: $6.12 Volume=6.5M Target=$7.75 Stop=$5.69
POSITION: QXA IA - Sept. $5c (71 delta) &/or Stock
http://www.investmenthouse.com/cd/mace.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 perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.

ALDN, BRCM, CECO, COH, DNA, EBAY, GTRC, LPNT, TGT

CECO: Volume has not rallied with the stock as it moves higher. It has formed something of a reverse head and shoulders pattern the past 7 weeks. A strong volume break over 70 is looking like a good entry point.

TGT: Starting to make the breakout form its 12 week base. Could use a bit better volume, but looks ready.

SUBSCRIBER WATCHLIST

We continually receive ideas for potential plays from subscribers. Many times they are already on our watchlists, other times not. We always take a look and sometimes find a gem or two, or more. We don't necessarily endorse these, but want to provide a forum for subscribers with ideas that may appeal to other subscribers. We may just put on the ticker or we might describe our thoughts as to why or why not we think it is a buy or sell. This is a way we can all learn a bit more and maybe find a few more candidates to make us some good money.

Upside:

JOSB: Working laterally over the 50 day EMA (32.29) in its 8 week base. Held the 200 day SMA on the low and bounced in late May to clear the 50 day. It is a bit low in the pattern for this to be the base that breaks it out, but looks to be setting up for a further move higher up the right side of the base.

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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