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Begin part 3 of 3

THE PLAYS

Good movers: ABRX; MACR; MSCC

Weekend play results:
BR: Nice test of the 50 day EMA breakdown is setting up the continued fall.
GENZ: Back to the 18 day EMA but lower volume and still in the pattern.
AVL: Strong volume continues as it moves toward the breakout.
HAE: Tapped the 50 day EMA and rebounded for a gain on volume. May be the final shakeout.

New Plays:

Upside:

Play Date: 04/18/2005
AYE (Allegheny Energy--$21.92; +0.43; optionable): Electric utilities
http://biz.yahoo.com/p/a/aye.html
STATUS: Test 50 day EMA. Hardly glamorous, but utilities are performing well. AYE broke out from a 16 week flat base in early March, came back to test the 50 day EMA (20.64), and surged higher once more to 23. During the recent selling it pulled back to test the breakout, falling all the way to the 50 day EMA intraday Monday. It rebounded and posted nice gain on the best volume since the breakout. Positive accumulation set up the breakout move. Money flow is strong and relative strength is breaking out once more. Looking to step back in on a continued move higher. It can move well for a utility.
Volume: 2.468M Avg Volume: 943.363K
BUY POINT: $22.25 Volume=1.2M Target=$26.75 Stop=$21.37
POSITION: AYE GD - July $20c (81 delta) &/or Stock
http://www.investmenthouse.com/cd/aye.html

Play Date: 04/18/2005
ENDP (Endo Pharmaceuticals--$22.58; +0.35; optionable): Drugs
http://biz.yahoo.com/p/e/endp.html
After Hours: $22.54
STATUS: Cup w/handle. Nicely formed 23 week base sporting excellent 9 to 3 accumulation (9 up price weeks on rising volume to 3 down price weeks on rising volume) has set up the breakout to come. The 7 week handle has moved laterally in a tight range above the 50 day EMA (21.86), a key support position. Money flow is outstanding, leading the way for the stock to follow. Want to see volume to jump back up as ENDP moves through the buy point.
Volume: 593.357K Avg Volume: 674.954K
BUY POINT: $23.15 Volume=850K Target=$26.62 Stop=$22.05
POSITION: IUK JX - Oct. $22.50c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/endp.html

Play Date: 04/18/2005
INFA (Informatica--$7.32; 0.00; optionable): Business software
http://biz.yahoo.com/p/i/infa.html
After Hours: $7.09
STATUS: Rolling. INFA is rolling up and down in a range between 7 (the 200 day SMA is at 7.07) and 8.50 the past 4 months. It is in its third leg lower in this range, maybe the last one before it makes the breakout. Stocks often make 4 or so rotations in these ranges before it breaks down. The range formed off the bottom of the 2004 sell off and is holding the 200 day SMA, a good indication it has gained support in this recovery move. A nice hammer doji at the March lows Monday as volume rose back up toward average. Looks ready to make the roll back up in the range, and we want to catch it as it does.
Volume: 1.029M Avg Volume: 1.036M
BUY POINT: $7.42 Volume=1.3M Target=$8.39 Stop=$7.24
POSITION: UYF IU - Sept. $7.50c (45 delta) &/or Stock
http://www.investmenthouse.com/cd/infa.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.

AAPL, BLUD, BR, COH, HW, STN, TSRA

AAPL: Trying to hold some support at 35, showing a doji. Needs to bounce but still looks crappy.

BR: Tapping the 50 day EMA on lower volume. May be the kiss goodbye.

STN: Volume has jumped as it holds the 50 day EMA.

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:

JNJ: Keeping a close watch on this one as it moves laterally the past two weeks, trying to make the next break higher. A leader.

GE: Another look at this key stock. Not a growth stock, but looks good as it holds a tight range in a 3.5 month lateral move at the 50 day EMA. Volume has jumped the past week but the stock has not sold off.

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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