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Begin part 3 of 3

THE PLAYS

Good movers Monday: CCK; DADE; FFIV; LSS; RDEN; TIWI; JBLU

Weekend play results:
AIRT: Jumped higher but ended up giving the move back. Still solid and ready to move higher
CCK: Surging on another strong volume gain.
LSS: Nice break higher though it could use more volume.
MDRX: Gapped higher but closed slightly lower on lower volume.

New Plays:

Upside:

Play Date: 02/14/2005
DOX (Amdocs--$29.30; -0.17; optionable): Business software
http://biz.yahoo.com/p/d/dox.html
STATUS: Breakout test. DOX exploded higher in mid-January on some impressive Q4 earnings. It rallied to just over 30 on that move and is now testing back, holding over the 18 day EMA (29.01). Very low, below average volume as it makes the test and holds the breakout move. Bigger picture, this is a 9 month cup with handle base sporting solid 10 to 8 accumulation (10 up price weeks on rising volume to 8 down price weeks on rising volume). That accumulation shows net buying during the base; in other words there is more demand than supply and that is what ultimately broke the stock out in January after all the sellers had sold out. Very nice breakout test and we are looking for volume jump back up as it moves up and through the buy point.
Volume: 789.2K Avg Volume: 1.349M
BUY POINT: $30.15 Volume=2M Target=$36 Stop=$28.88
POSITION: DOX GF - July $30c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/dox.html

Play Date: 02/14/2005
MICC (Millicom Cellular--$22.87; +0.87; optionable): Foreign telecom
http://biz.yahoo.com/p/m/micc.html
STATUS: Cup w/handle. Volume was up and well above average Monday as MICC jumped off the 50 day EMA (21.27) as it broke out of its short 10 week base. This is a base on base pattern, the prior base being a 7.5 month cup with handle that broke out in early December but then fell into the current base. It did not have the juice on that first breakout attempt, but it formed up again and is showing solid 3 to 1 accumulation. It also held the 200 day SMA (20.23) on the test lower, an important institutional support level. It is near a multiyear high, a solid leader in the market. Looking for that volume to continue to pour in as MICC continues the break higher.
Volume: 524.99K Avg Volume: 374.909K
BUY POINT: $23.12 Volume=400K Target=$27.78 Stop=$21.62
POSITION: CQD GX - July $22.50c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/micc.html

Play Date: 02/14/2005
ULTI (Ultimate Software--$13.85; -0.05; optionable): Payroll and workforce management solutions
http://biz.yahoo.com/p/u/ulti.html
After Hours: $13.90
STATUS: Double bottom. Volume has jumped above average the past two sessions as ULTI started the breakout form its 10 week base that formed using the 200 day SMA (12.07) as support. Another base on base pattern, this base follows a 9 month double bottom with handle base breakout in early December. Like these patterns because they really weed out the sellers. Accumulation in the current base is a strong 4 to 1; not bad in the bigger pattern either at 15 to 7. It is ready for a new all-time high and we are looking at positions as it breaks over the early December highs (13.94).
Volume: 230.667K Avg Volume: 107K
BUY POINT: $14.05 Volume=160K Target=$16.82 Stop=$13.32
POSITION: JUL EV - May $12.50c (77 delta) &/or Stock
http://www.investmenthouse.com/cd/ulti.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, GTRC, HDWR, MSTR, STN, TSRA, UPL

New additions: STN

BR: Continuing the breakout move, clearing the late November high.

EASI: Still testing the break higher, coming back to the 10 day EMA again but on very low volume.

TSRA: Fortuitous timing. Breakout.

STN: Moving laterally the past two weeks on low volume after a strong volume breakout from a 7 week cup base in late January. A long-term leader that broke out in early 2003 and has more than doubled.

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:

ENWV: Working laterally over the 10 day EMA in a very tight flying plateau after gapping higher to start the move.

WYNN: Trying to breakout to a new high from a 9 week base that formed over the 50 day EMA. This is the company of one of the big developers in Las Vegas.

FSL: Testing the breakout from an 11 week base in early February. A break through 19 on strong volume is the next entry point.

FMD: A nice lateral flying plateau above the 10 day EMA following the January breakout from a nice 10 week flat base.

ISLE: Someone spotted a good pattern. We had been watching it, and unfortunately watched it break out Monday on strong volume from a nice 13 week base that followed a longer 7 month base that exploded higher in early November.

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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