stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers Thursday: COST; GW

Wednesday night play results:
SOX: Held steady over 400 and the 50 day EMA.
JNPR: Faded back from some resistance at 26.
PTEN: Gapped higher on good volume but faded.
SGMS: Held steady on lighter trade.
ZQK: Eased back on lighter volume.

New Plays:

Upside:

Play Date: 10/07/2004
AVN (Avanir Pharma--$2.98; +0.16; no options): Drugs
http://biz.yahoo.com/p/a/avn.html
STATUS: Flying plateau. AVN exploded out of a long base in mid-August, surging on extremely strong volume. It peaked at 3.20 then spent the next three weeks consolidating the gains on lower, below average volume. A few volume spikes during the consolidation to go along with the 2 to 0 accumulation in the pattern. Volume surged Thursday as it moved off of 2.80, the level acting as support in the plateau. Money flow has turned sharply higher and is surging ahead of price. Looks ready to follow the money.
Volume: 1.695M Avg Volume: 812.09K
BUY POINT: $3.12 Volume=1M Target=$4.05 Stop=$2.97
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/avn.html

Play Date: 10/07/2004
ACXM (Acxicom--$24.17; -0.22; optionable): ITS software
http://biz.yahoo.com/p/a/acxm.html
After Hours: $24.17
STATUS: Cup w/handle. AXCM has formed a 13 week cup and is now fading back toward the 10 day EMA (23.74) to form the handle, the last part of the base where the last sellers get frustrated it has stalled after approaching the prior high. When they are shaken out only the strong holders are left, and they won't part with it until the price rises further. That propels the breakout. Strong 6 to 3 accumulation shows net buyers during the base, setting up the breakout move. Strong money flow is leading the way. May take a few more sessions to complete the handle, most likely fully testing the 10 day EMA. Volume was surging Thursday, however, as it tested lower and rebounded. It may just be ready to take off from here.
Volume: 1.261M Avg Volume: 468.318K
BUY POINT: $24.62 Volume=702K Target=$29 Stop=$23.68
POSITION: UQA BE - Feb. $25c (44 delta) &/or Stock
http://www.investmenthouse.com/ci/acxm.html

Play Date: 10/07/2004
CHT (Chunghwa Telecom--$18.50; +0.40; optionable): Chinese wireless telecom
http://biz.yahoo.com/p/c/cht.html
STATUS: Double bottom. Volume finally jumped above average Thursday as CHT made a more definitive move out of its 25 week double bottom base. Accumulation in the pattern is a strong 7 to 4, showing net buyers during the base (7 up price weeks on rising volume to 4 down price weeks on rising volume). Relative strength broke out on the move, a good corroboration of the breakout. Looking to initiate a partial position on a further move from here and if it comes back to test, when it rebounds from that test.
Volume: 323.2K Avg Volume: 203.681K
BUY POINT: $18.62 Volume=306K Target=$22 Stop=$17.55
POSITION: CHT CW - Mar. $17.50c (76 delta) &/or Stock
http://www.investmenthouse.com/ci/cht.html

Play Date: 10/07/2004
MSCC (Microsemi--$15.30; -0.09; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mscc.html
After Hours: $15.35
STATUS: Breakout test. MSCC exploded out of an 8 month double bottom with handle base to start the month. It peaked at 16 Monday and has faded back to test the breakout move. It held up extremely well Thursday compared to the rest of the market. Accumulation in the long base is a solid 8 to 4. Looking for a test of 15 or even down to the 10 day EMA (14.80) and then a rebound on strong volume. Breakout tests are one of our favorite entry points.
Volume: 492.025K Avg Volume: 684.772K
BUY POINT: $15.75 Volume=1M Target=$19 Stop=$14.78
POSITION: QMS CC - Mar. $15c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/mscc.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.

stock recommendation
stock option