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Begin part 3 of 3

THE PLAYS

Good movers Tuesday: LCAV; STN; UCOMP; TKO; USU; WSTM

Monday nigh play results:
ALXN: Still holding just over the 50 day EMA
PUMP: Still in the nice handle, holding over the 10 day EMA.
SRNA: Still holding well over the 18 day EMA
CRZO: Holding the 10 day EMA in a nice test.

New Plays:

Upside:

Play Date: 01/25/2005
FFIV (F5 Networks--$47.69; +0.07; optionable): Internet software and services
http://biz.yahoo.com/p/f/ffiv.html
After Hours: $47.80
STATUS: Breakout test. Nice pullback to the 10 day EMA (47.05), showing a nice tight doji there as FFIV prepares to continue the move higher. Shot up last Thursday on a strong earnings report and has tested that move this week on lower trade. Broke out in late October from a 10 month cup with handle base, rallied to 50, and then tested the 50 day EMA (44.41). Has moved off that level and is in the process of making a higher low here. Looking for a move up on continued solid volume.
Volume: 1.776M Avg Volume: 1.267M
BUY POINT: $48.32 Volume=1.9M Target=$55 Stop=$46.32
POSITION: FLK DI - Apr. $45c (68 delta) &/or Stock
http://www.investmenthouse.com/cd/ffiv.html

Play Date: 01/25/2005
SYD (Sybron Dental--$36.03; +1.61; optionable): Medical instruments
http://biz.yahoo.com/p/s/syd.html
STATUS: Flat base. Volume surged Tuesday as SYD jumped off the 50 day EMA (34.10) as it breaks out from a 7 week flat base (or a really compressed double bottom with handle). Excellent 3 to 1 accumulation in the short pattern (3 up price weeks on rising volume to 1 down price weeks on rising volume) shows net buyers as the stock took a breather. This short base worked to consolidate the breakout from a 9 month base. Looks as if it has done its job. Excellent money flow and relative strength making the breakout move ahead of the stock. Bullish. Looking to move in on a further move higher on decent trade (it has already shown good breakout volume Tuesday).
Volume: 476.1K Avg Volume: 218.318K
BUY POINT: $36.19 Volume=327K Target=$41 Stop=$34.32
POSITION: SYD DG - Apr. $35c (72 delta) &/or Stock
http://www.investmenthouse.com/cd/syd.html

Play Date: 01/25/2005
TIWI (Telesystem Intl. Wireless--$13.64; +0.91; optionable): Foreign telecom
http://biz.yahoo.com/p/t/tiwi.html
After Hours: $13.76
STATUS: Cup w/handle. Volume jumped Tuesday as TIWI jumped out of its week long handle to the 12 month base. Volume had surged nicely the past two weeks, just want you want to see as the stock moves up to the breakout point. Strong 11 to 5 accumulation in the base (11 up price weeks on rising volume to 5 down price weeks on rising volume) shows a lot of buyers and set up the base for the breakout and run. Money flow is racing higher and relative strength is moving toward a breakout. Very solid base that formed on the lows roughly holding the 200 day SMA (10.28). Looks ready to make a strong move here.
Volume: 1.554M Avg Volume: 585.727K
BUY POINT: $13.78 Volume=775K Target=$16.55 Stop=$12.96
POSITION: TAU FV - June $12.50c (70 delta) &/or Stock
http://www.investmenthouse.com/cd/tiwi.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

COH: All right. Announced a 2:1 split and some good earnings. Gapped it higher but it could not clear the 18 day EMA or take the gap any further yet.

EBAY: No attempt to rebound toward the 200 day SMA in a show of no strength.

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:

STTX: Nice 14 week ascending triangle that has formed over the 50 day EMA. Good volume the past two sessions as it knocks at the breakout point.

Downside:

ALTR: Moving in a continuing downtrend after peaking following a head and shoulders late in the year and gapping below the 200 day SMA. It has moved laterally the past two weeks, and is now running into the downtrending 18 day EMA. This is exactly what it did to end December and tumbled lower when it hit the 18 day.

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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