stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Thursday: BRCD; CMTL; CRIS

Wednesday night play results:
BRCD: Nice surge continues on strong volume.
DRTE: Moving higher but closed off the high.
MDRX: Took a breather on very low volume after the strong Wednesday move. Just taking a rest.

New Plays:

Upside:

Play Date: 12/16/2004
NVDA (Nvidia--$23.65; +0.31; optionable): Computer game semiconductors
http://biz.yahoo.com/p/n/nvda.html
After Hours: $23.96
STATUS: Cup w/handle. Volume surged Thursday as NVDA started the breakout from an 8.5 month base. Strong 12 to 8 accumulation (12 up price weeks on rising volume to 8 down price weeks on rising volume) shows net buyers during the base, setting the foundation for a further move higher. This is part of a long correction in the stock and the first base after NVDA fell back in April from an attempt to build higher. Lots of buying of late and looking to pick up positions on a continued move higher.
Volume: 12.702M Avg Volume: 7.124M
BUY POINT: $24.05 Volume=11M Target=$28.88 Stop=$22.37
POSITION: UVA CX - Mar. $22.50c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/nvda.html

Play Date: 12/16/2004
TERN (Terayon Communication--$2.74; +0.18; no options): Telecom processing systems and equipment
http://biz.yahoo.com/p/t/tern.html
After Hours: $2.75
STATUS: Test 200 day SMA. TERN is coming off the bottom of a long 15 month base. It broke over the 200 day SMA (2.37 last week on a tremendous volume surge, then came back this week to test that move. Volume backed off and it held the 10 day EMA (2.50) as it made the pullback. Thursday volume returned and TERN shot higher off that support. Nice test. Solid money flow is leading higher. Ready to move in and catch the momentum higher. We really like the test break through the 200 day, the easy test, then the rebound on strong volume. That shows us that those buyers that drove it through that level are willing to pick up more shares after a bit of a pullback.
Volume: 1.676M Avg Volume: 655.181K
BUY POINT: $2.82 Volume=983K Target=$3.72 Stop=$2.62
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/tern.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/cd/vnwk.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

QCOM: Disappointing move as it sold to the 10 day EMA on rising, average volume. Not the end of the pattern, but you would prefer to see lighter volume on such a pullback.

MSFT: Still setting up.

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:

GEMS: One of those stocks deep in a base, but breaking back over the 200 day SMA Thursday on a tremendous surge in volume. Typically we like to pick them up as the come off of a test of that breakout.

CREAF: The other iPod maker. Nice test of the tremendous surge to end November and earlier this month. Broke out from a nice 10.5 month cup with handle. Looks good on this test.

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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