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Begin part 3 of 3

THE PLAYS

Good movers Monday: ASPM; MEDX; NFLD; SYMM; VRSN

New Plays:

Upside:

Play Date: 11/29/2004
ENCY (Encysive Pharma--$10.58; +0.43; optionable): Biotechnology
http://biz.yahoo.com/p/e/ency.html
STATUS: Cup w/handle. ENCY started the breakout move Monday, posting a good price move as it started the breakout from its 8 month base sporting excellent 11 to 3 accumulation (11 up price weeks on rising volume to 3 down price weeks on rising volume. That shows net buying in the base. Money flow is strong, surging higher ahead of price. The only thing missing was the volume; it was up but remained below average. Looks great, just needs the volume.
Volume: 535.588K Avg Volume: 852.863K
BUY POINT: $10.85 Volume=11M Target=$13 Stop=$10.05
POSITION: IQE DB - Apr. $10c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/ency.html

Play Date: 11/29/2004
KLAC (KLA Tencor--$45.52; -0.08; optionable): Chip equipment
http://biz.yahoo.com/p/k/klac.html
STATUS: Test 200 day SMA. KLAC is one of the chips that is moving laterally in a tight range and on low volume (that shows few sellers). It is in better position than most because it has already broken through its 200 day SMA (44.89), having done so on strong trade 2 weeks back. It is still working on a long 11 month base, moving well off the former high at 62.50. That does not mean it can't run higher after this lateral move and give us a nice gain. Volume ahs been very low on this test; just waiting for it to start back up on a good volume surge.
Volume: 3.503M Avg Volume: 6.877M
BUY POINT: $46.45 Volume=9M Target=$52.48 Stop=$45.21
POSITION: KCQ CI - Mar. $45c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/klac.html

Play Date: 11/29/2004
SUNW (Sun Microsystems--$5.51; +0.25; optionable): Computer hardware
http://biz.yahoo.com/p/s/sunw.html
STATUS: Cup w/handle. One of the big names from the boom, SUNW is still working off a long, long base. It has come off of the lows and formed the current 9.5 month base sporting strong 9 to 5 accumulation. This pattern shows us accumulation and SUNW can give us a nice run on a breakout. It is not ready to return to market leadership, but it performed well on a tough day for large cap techs and can make us a nice gain on a continued breakout move.
Volume: 59.081M Avg Volume: 37.242M
BUY POINT: $5.62 Volume=40M Target=$6.75 Stop=$5.38
POSITION: SUQ DA - Apr. $5c (76 delta) &/or Stock
http://www.investmenthouse.com/cd/sunw.html

Current plays that look ready to move:

Play Date: 11/22/2004
EPIC (Epicor Software--$15.72; +0.86; optionable): Application software
http://biz.yahoo.com/p/e/epic.html
STATUS: Double bottom w/handle. Volume surged Friday as EPIC moved toward the breakout from its 10.5 month base. Money flow has taken off ahead of price and it looks ready for the breakout.
Volume: 943.228K Avg Volume: 560.181K
BUY POINT: $15.88 Volume=775K Target=$19 Stop=$15.05
POSITION: EUE CC - Mar. $15c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/epic.html

New entry point on a continuing play:

Play Date: 11/03/2004
HAE (Haemonetics--$35.18; +0.4; optionable): Medical instruments
http://biz.yahoo.com/p/h/hae.html
STATUS: Flying plateau. Volume exploded higher Friday as HAE moved off the 18 day EMA after a modest gap lower. It rallied back and closed at the session high. Ready to continue the breakout move from the 22 week base.
Volume: 478.1K Avg Volume: 140.818K
BUY POINT: New positions: $35.72 (orig. positions: $33.58) Volume=190K Target=$40 Stop=$34.17
POSITION: HAE CG - Mar. $35c (55 delta) &/or Stock
http://www.investmenthouse.com/cd/hae.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.

BR, COH, EASI, EBAY, GTRC, HDWR, JNPR, MSFT, QCOM

EASI: Volume moved to average as EASI starts the breakout move from its 22 week cup with handle. Need to see some more trade as it continues, and it is a buy.

JNPR: Tested back to the 18 day EMA but on continued very low volume. Nice test in progress.

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:

IDCC: Wireless telecom. Deep in its 9 month base, IDCC rallied off the lows to start the month, moving on much better volume. Monday it fell back to the 10 day EMA and held. Not bad.

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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