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Begin part 3 of 3
THE PLAYS
Good movers Tuesday: ATSN; BEAV; CMVT; SFL; ISSC; MYGN; NFLD; RMBS
Monday night play results:
CBST: Moving toward the breakout on rising volume. Looks ready.
CRIS: Blasted higher on volume but could not hold the move.
ROV: Eased higher but volume eased lower.
ASPM: Held steady on the breakout test once more.
New Plays:
Upside:
Play Date: 12/14/2004
LRW (Labor Ready--$16.10; +0.62; optionable): Staffing & outsourcing
http://biz.yahoo.com/p/l/lrw.html
STATUS: Cup w/handle. Volume is surging as LRW is making the breakout from its 23 week base sporting solid 6 to 4 accumulation (6 up price weeks on rising volume to 4 down price weeks on rising volume). This shows net buyers during the base, setting up the breakout and subsequent run. The breakout is underway with this strong move that is following money flow higher. This will take it to a multiyear high and not too far from an all-time high.
Volume: 889.4K Avg Volume: 294.136K
BUY POINT: $16.37 Volume=350K Target=$19.65 Stop=$15.55
POSITION: LRW EC - May. $15c (74 delta) &/or Stock
http://www.investmenthouse.com/cd/lrw.html
Play Date: 12/14/2004
OVNT (Overnite Corp.--$35.84; +1.14; optionable): Trucking
http://biz.yahoo.com/p/o/ovnt.html
After Hours: $35.83
STATUS: Ascending triangle. Volume is picking up as OVNT is bumping at the breakout point from its 8 week triangle. The stock has used the 50 day EMA (34.08) as support as it makes higher and higher lows below the constant top at 35. Excellent 3 to 0 accumulation in the pattern shows nothing but buyers in the consolidation. Strong money flow as well. Breakouts from these patterns can be explosive, and we need to be ready when it makes the break.
Volume: 344.286K Avg Volume: 209.045K
BUY POINT: $36.32 Volume=335K Target=$41 Stop=$34.55
POSITION: QWQ CG - Mar. $35c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/ovnt.html
Play Date: 12/14/2004
ORCH (Orchid Biosciences--$11.85; +0.05; no options): Diagnostic substances
http://biz.yahoo.com/p/o/orch.html
After Hours: $11.85
STATUS: Cup w/handle. ORCH jumped higher to start the month, moving up on strong, above average volume. You could call that the breakout from the 9.5 month base and it is now working higher up the 10 day EMA (11.47) but bumping its head at 12, moving laterally the past four sessions on below average volume. Very strong 11 to 5 accumulation in the pattern shows net buyers. The base formed using the 200 day SMA (8.33) as support, a very important institutional support level as the big money moves in to pick up shares and support their stock at that level. Looking for another volume surge to push it through 12 and the buy point.
Volume: 90.489K Avg Volume: 204.272K
BUY POINT: $12.12 Volume=306K Target=$14.55 Stop=$11.35
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/orch.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: Strong earnings gapped it higher but it closed down from the opening price. May test back a bit more before resuming the move, but a good start.
EBAY: Still a very nice lateral consolidation over the 10 day EMA.
JNPR: Struggling, gapping down to the 50 day EMA on volume. The gap down gave us little to work with, and we will see if can rebound through 28 when it makes the test.
QCOM: Volume was up as it moved toward the breakout. Needs more volume as it continues the move.
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:
BEBE: Splits 3:2 on 12-30, and moving laterally below 40 on lower and lower volume. May tighten up a few more sessions before breaking higher. Strong leader and looking for a strong pre-split move.
LSTR: Recently announced a split and is trying to move out of a 7 week lateral move. Gapped up Tuesday and closed at the session high but volume remained just below average. On the verge of making the breakout move.
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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