stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers Thursday: AAPL; ATVI; BRCD; CMTL; MIPS

Wednesday night play results:
BRCD: Nice surge continues on strong volume.
CENT: Continued the rally on above average volume but gave back a good part of the early move.
COHR: Gave back some of the Wednesday move but volume was lower and it is still ready to move higher.
CSTR: After the strong Wednesday volume it faded back, still testing the 50 day EMA.

New Plays:

Play Date: 12/16/2004
HAR (Harman Intl.--$124.5; -0.5; optionable): High end auto audio
http://biz.yahoo.com/p/h/har.html
STATUS: Test 50 day EMA. HAR is coming off the 50 day EMA (118.54), showing some strong volume Wednesday as it posted a solid move. Volume faded Thursday as HAR took a breather with the rest of the market, but it held the 18 day EMA (122.92) on the low and rebounded to recoup most of the loss. Ready to continue the move. Can run like the wind when it gets started.
Volume: 413.4K Avg Volume: 598.025K
BUY POINT: $125.65 Volume=800K Target=$136 Stop=$122.48
POSITION: HAR DE - Apr. $125c (54 delta)
http://www.investmenthouse.com/ci/har.html

Play Date: 12/16/2004
PNK (Pinnacle Entertainment--$18.34; +0.94; optionable): Gaming facilities
http://biz.yahoo.com/p/p/pnk.html
STATUS: Breakout test. PNK is coming off its second test of the late October breakout, bouncing off the 18 day EMA (17.67) on some very strong volume. Strong stocks make 4 to 5 such bounces, giving PNK plenty of upside on this move. Outstanding 11 to 1 accumulation (11 up price weeks on rising volume to 1 down price weeks on rising volume) set up the breakout and run. Money flow remains very strong and relative strength is breaking higher again.
Volume: 539.3K Avg Volume: 209.59K
BUY POINT: $18.55 Volume=300K Target=$22.25 Stop=$17.53
POSITION: PNK CW - Mar. $17.50c (69 delta) &/or Stock
http://www.investmenthouse.com/ci/pnk.html

Play Date: 12/16/2004
PRFT (Perficient--$6.65; +0.34; no options): Business software
http://biz.yahoo.com/p/p/prft.html
After Hours: $6.60
STATUS: Breakout test. Volume is surging as PRFT continues the breakout move. An excellent 9 month cup with handle base set up the late October blast higher to 6.50. It moved laterally for two weeks on lower volume and then started rallying again Thursday on that strong shot of volume. Excellent 10 to 3 accumulation in the base set up the breakout and this run. This is the first test of the move, and one of our favorite entry points. Looking to move in on a further volume move higher through the buy point.
Volume: 425.234K Avg Volume: 157.318K
BUY POINT: $6.74 Volume=236K Target=$8.21 Stop=$6.27
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/prft.html

Play Date: 12/16/2004
VNWK (Visual Networks--$3.70; -0.10; no options): Business software
http://biz.yahoo.com/p/v/vnwk.html
STATUS: Cup w/handle. A very nice, low volume handle is forming above the 10 day EMA (3.63) as VNWK pulls back to consolidate a nice move in December to finish forming the right side of its 9.5 month base. Solid 10 to 7 accumulation shows net buyers during the base, setting up the breakout move. Nicely formed base after VNWK has come off the bottom of its long base. It is nowhere near an all-time high, but the passage of time has eliminated a lot of that overhead supply along with solid bases such as the current one. Looking for volume to surge as VNWK moves through the buy point. Volume was back above Thursday as it held the 10 day and showed a doji. Getting ready.
Volume: 185.21K Avg Volume: 134.439K
BUY POINT: $3.95 Volume=202K Target=$4.88 Stop=$3.67
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/vnwk.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.

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