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Begin part 3 of 3

THE PLAYS

NOTE: Due to a family emergency this weekend we are presenting some solid new plays and then highlighting those plays that still look ready to make moves this week, holding up as the rest of the market sold.

NEW PLAYS:

Upside:

Play Date: 10/23/2004
CNCT (Connetics--$27.6; +0.27; optionable): Drugs
http://biz.yahoo.com/p/c/cnct.html
STATUS: Flat base. CNCT is a market leader looking for a new all-time high. It is working in a 13 week flat pattern that is trading between 26 on the low (50 day EMA at 26.10) and 28 on the high. This pattern formed after a solid breakout from the February to July base. Accumulation in the current base is a solid 3 to 1 and it formed over the 50 day EMA, both showing the stock has strong institutional interest. Money flow is solid and relative strength is moving higher for a breakout. Thursday and Friday volume moved above average, and it looks as if CNCT is getting ready to make the breakout move.
Volume: 818.788K Avg Volume: 621.747K
BUY POINT: $28.56 Volume=750K Target=$34 Stop=$27.88
POSITION: UXU AE - Jan. $25c (77 delta) &/or Stock
http://www.investmenthouse.com/ct/cnct.html

Play Date: 10/23/2004
HTCH (Hutchinson Technology--$32.29; -0.30; optionable): Data storage devices
http://biz.yahoo.com/p/h/htch.html
STATUS: Cup w/handle. HTCH exploded higher to start the month, forming the right side of its 10 month pattern as it upped its earnings expectations for the quarter. After the powerful move that week it has eased back to the 18 day EMA (31.74) on very light, below average volume. Excellent money flow is leading the way higher even as the stock eases back to make this test and form the handle to its base. Solid 9 to 6 accumulation in the base shows net buyers and sets the foundation for the breakout. Want to see that volume jump back up above average as it makes the breakout move from the pattern.
Earnings: 11-1
Volume: 326.447K Avg Volume: 527.198K
BUY POINT: $33.68 Volume=791K Target=$40 Stop=$31.97
POSITION: UTQ AF - Jan. $30c (73 delta) &/or Stock
http://www.investmenthouse.com/ct/htch.html

Play Date: 10/23/2004
ISSX (Internet Security System--$18.45; -0.42; optionable): Security software
http://biz.yahoo.com/p/i/issx.html
STATUS: Cup w/handle. ISSX has spent the year forming a new base, a 10 month cup with handle. It is currently working on the handle, a 3 week jobber that is working the lows along the 18 day EMA (17.90). Excellent 15 to 6 accumulation in the pattern shows a lot of buyers picking up the stock. Volume surged above average Thursday as the stock jumped off the 18 day EMA. It took a breather Friday, holding up well as the market sold. May take a few sessions, but looks ready for a breakout move.
Volume: 772.778K Avg Volume: 852.056K
BUY POINT: $19.05 Volume=1.3M Target=$23 Stop=$17.88
POSITION: ISU AW - Jan. $17.50c (68 delta) &/or Stock
http://www.investmenthouse.com/ct/issx.html

Play Date: 10/23/2004
NCR (NCR Corp.--$53.27; -0.14; optionable): ITS software
http://biz.yahoo.com/p/n/ncr.html
STATUS: Breakout test. NCR gapped out of a nice 13 week cup with handle base two weeks back, blasting higher on tremendous volume. It continued the rally up to 55 and then eased back last week to test the breakout. Volume started to back off as it slipped back toward the 10 day EMA (52.77), refusing to sell hard as much of the market sold off. The excellent 6 to 1 accumulation in the pattern is one reason; a lot of buyers during the short base did not want to sell their shares. Money flow remains strong and relative strength broke out on the move, a good indication of the stock's strength. Looking for it to fully test the 10 day EMA and then rebound on rising trade for our entry point. The first test of a breakout is one of our favorite buy points as it shows the breakout was for real as the buyers return to pick up even more shares.
Earnings: 11-28
Volume: 497.9K Avg Volume: 625K
BUY POINT: $54.05 Volume=725K Target=$62.35 Stop=$52.68
POSITION: NCR AK - Jan. $55c (40 delta) &/or Stock
http://www.investmenthouse.com/ct/ncr.html

Play Date: 10/23/2004
NVTL (Novatel Wireless--$24.30; -0.72; optionable): Business software
http://biz.yahoo.com/p/n/nvtl.html
STATUS: Ascending triangle. The pattern is tightening up as NVTL made a higher low over the 50 day EMA (22.56) last week and started back toward the breakout point. A solid, orderly pattern sporting strong 10 to 5 accumulation. It formed along the 50 day EMA, a sign of strength as institutions supported it at that level. Looking for a strong volume move through the buy point to move into positions.
Volume: 1.212M Avg Volume: 1.498M
BUY POINT: $25.88 Volume=2.2M Target=$31 Stop=$24.88
POSITION: NVU CE - Mar. $25c (55 delta) &/or Stock
http://www.investmenthouse.com/ct/nvtl.html

CONTINUING PLAYS:

Again we are listing the plays that look ready to move due to an emergency this weekend. These stocks are in good shape and look ready to move higher. Buy points are contained in the continuing play table.

BBY: Ready for a new move. A buy over 57.30 on above average volume.
CHT: Showing good volume to end the week.
CMTL: Still in that nice handle.
HMX
PFCB: Forming up very nicely.
RAE: Setting up for the next move as it works laterally over the 10 day EMA, showing tight dojis. New positions can be taken on a move above 6.74.
VION: Still working laterally over the 18 day EMA.

Good Investing!
Jon L. Johnson and your Technical Traders Report 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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