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Begin part 3 of 3

THE PLAYS

Good movers Wednesday: ASTM; CRZO; MAPS

Tuesday evening play results:
AFFX: Tried to make the move but not in this market. Came back to test the 10 day EMA.
HTCH: Gave back the Tuesday move on lower trade, but that may change tomorrow.
IVIL: Reversed the Tuesday move, holding at the 18 day EMA.

New Plays:

Upside:

Play Date: 01/19/2005
BIOM (Biomira--$2.13; -0.09; no options): Biotechnology
http://biz.yahoo.com/p/b/biom.html
After Hours: $2.09
STATUS: Test 50 day EMA. BIOM blasted out of a 9 month base in early December, surging to just over 4 on the two day surge. It has come back to test the move, holding at the 50 day EMA (2.09) on very low volume. This is a rebound play, and it can go off at any time. Money flow is very strong even as the stock has pulled back. Just have to be patient and watch for the volume surge as the stock moves toward the buy point.
Volume: 764.053K Avg Volume: 3.862M
BUY POINT: $2.29 Volume=5M Target=$3.11 Stop=$2.13
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/biom.html

Play Date: 01/19/2005
CCI (Crown Castle Intl.--$17.47; +0.33; optionable): Telecom
http://biz.yahoo.com/p/c/cci.html
After Hours: $17.42
STATUS: Cup w/handle. Volume was decent Wednesday as CCI moved off the 18 day EMA (16.87) and the bottom of its handle to its 6 month base. Accumulation in this small pattern is positive at 2 to 1, and this base is a good test of the breakout from an 18 week cup with handle in November. Nice base on base pattern to weed out the sellers and set up the breakout and run. Relative strength broke out Wednesday on the move. It is ready to make a break to a three year high.
Volume: 1.4M Avg Volume: 1.333M
BUY POINT: $17.64 Volume=2M Target=$21 Stop=$16.95
POSITION: CCI DW - Apr. $17.50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/cci.html

Play Date: 01/19/2005
ELGX (Endologix--$7.10; +0.20; no options): Medical instruments
http://biz.yahoo.com/p/e/elgx.html
After Hours: $7.02
STATUS: Double bottom w/handle. Volume surged Wednesday as ELGX broke over the recent resistance in the handle to its relatively short 8 week base. The double bottom used the 200 day SMA (5.83) as the support for its lower legs, an important institutional support level where the big money steps in to pick up shares. ELGX used the 50 day EMA (6.39) as support for the handle, another important support level. Excellent 4 to 1 accumulation in the base shows mostly all buyers. This is a second base that formed after a 7 month pattern that broke out in September. Excellent money flow is leading higher. Ready to step in on another strong volume move.
Volume: 576.355K Avg Volume: 203.909K
BUY POINT: $7.25 Volume=306K Target=$8.72 Stop=$6.78
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/elgx.html

Downside:

Play Date: 01/19/2005
UTSI (Utstarcom--$16.98; +0.05; optionable): Telecom wireless communications
http://biz.yahoo.com/p/u/utsi.html
After Hours: $16.98
STATUS: Put. A test of the 200 day SMA (21.97) to start the money and then a nasty gap down on very strong volume. UTSI then rebounded the past two weeks, moving back up to test the 10 day EMA (17.67) Wednesday and then rolling over on stronger, average volume. This may be all of the gap that is filled as money flow continues lower. Looking for it to continue lower on continues solid volume to entery downside positions.
Volume: 2.96M Avg Volume: 2.883M
BUY POINT: $16.85 Volume=3.1M Target=$15.57 Stop=$17.22
POSITION: UON NW - Feb. $17.50p (-55 delta)
http://www.investmenthouse.com/cd/utsi.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

BR: Trying to set up a double bottom but a bit early to get too excited.

EBAY: Announced its 2:1 split after the close but that was not the focus. It missed its earnings for the first time in a long time and lowered the range for Q1 earnings. The stock was torched after hours, down another 14 points. We have already sold all of our nearer term positions on the break below the 50 day EMA. After hours it was trading below the 200 day SMA (92.01). It will need to recover that level Thursday on the close for us to hold those positions.

JNPR: Ugly session as its earnings were not good enough. Did manage to rebound off some support at 25, but continues its trend below the 50 day EMA for now.

MSFT: Gave up the consolidation last week and is not improving. Trying to hold some support at 26.

QCOM: Hit earnings after hours but gave weaker guidance and was getting hit hard after hours, selling down another $2.50. Still above the 200 day SMA (37.69) at that point. Will see how well it can rebound off that level.

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.

Downside:

NOC: If 52 fails it could retest 50 after that December double top.

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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