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Begin Part 2 of 2

Best Plays, Part 2:
1) ABX: The momentum looks good on this move up in the handle.
2) PRHC: A lower volume pullback to support.
3) FIMG: Looking for a bounce from the 18 day MVA.
4) IMNX: Ready to move up from the 50 day MVA.
5) PBG: A super move that needs backing volume.

NEW PLAYS (continued):

A shorter term trade.

ABX (Barrick Gold--$17.34; +1.02; optionable): Metals & Mining
http://biz.yahoo.com/p/a/abx.html
STATUS: A strong move from the range of the 50 day MVA (16.18); volume was strong, breaking above average to 3.7 million (avg. 1.9 million). The stock is in a 4-month base and made the move after a low-volume pullback from the September high of 17.99. Though that is the high, we are plotting a buy point for a move out of the handle just above 17.75, a price hit twice recently. ABX shows great money flow and buying, and relative strength is breaking out ahead of price, a bullish sign. Target: 21
BUY POINT: 17.88, on continued strong volume (minimum breakout volume is 2.85 million). Stop: 16.75. A buy on a breakout up to 18.77
POSITION: Stock and/or January $17.50 calls to buy (ABX AW).

New plays (From Monday):

PCS (Sprint--$26.03; +0.03; optionable): Telecom
http://biz.yahoo.com/p/p/pcs.html
STATUS: Our buy point in the ascending wedge is 27.13, and the stock tried to get back up there Wednesday (high was 26.75). Volume was lower at 13.2 million (avg. 8 million), and the stock pulled back with it, closing at likely support (price support from April, May, July and August). If that support does not hold, we can get another pullback in the pattern to the 25 range. Still like the pattern, and PCS continues to show strong money flow and high relative strength. Target on breakout: 34
BUY POINT: 27.13, on rising volume (11 million or higher). Stop: 25
POSITION: Stock and/or November $22.50 calls to buy (PCS KT).

Back On (as of Monday):

ODP (Office Depot--$13.10; -0.40; optoinalbe): Specialty retail
http://biz.yahoo.com/p/o/odp.html
STATUS: After making the solid move over the short term MVAs, ODP pulled back Wednesday as volume dropped back sharply to 1.8 million (avg. 2.2 million). The stock closed a couple of cents below the 18 day MVA (13.13), but support looks firm at 13. ODP is in a 17-month cup with handle base, but sold off earlier this month down to 11, from where it has bounced back. We are looking for a strong breakout over the high; the stock shows strong money flow and great buying. Target: 17
BUY POINT: Breakout: 14.38, on minimum breakout volume of 3.3 million. Stop: 12.60.
POSITION: Stock and/or January $10 calls to buy (ODP AB).

PRHC (Province Healthcare--$37.05; +0.55; optionable (PUH): Health Services
http://biz.yahoo.com/p/p/prhc.html
STATUS: In a cup with handle base of 9 months (prior high at 42.63). It moved back over the short term MVAs Monday, from support at the 50 day MVA (currently at 35.73), pulled back yesterday to the 18 day MVA and today looks like it will hold support there. Volume fell back to 582,100 (avg. 429,181) as the stock showed a doji at the moving average. Looking for a strong move back up and breakout over the handle (August) high of 39.10. Great money flow and bullish relative strength (is ahead of price). Target: 45-47.
BUY POINT: 39.23, on minimum breakout volume of 644,000. Stop: 36.09 (18 day MVA is at 36.59). A buy on the breakout up to 41.19.
POSITION: Stock and/or December $35 calls to buy (PUH LG).

GD (General Dynamics--$85.39; -0.43; optionable): Aerospace/Defense
http://biz.yahoo.com/p/g/gd.html
STATUS: Hung up at the 86 level (September high is 87.13) as volume dropped off steadily since last week; GD made strong move up Friday and Monday but the shrinking volume is holding it back (dropped back to 1.08 million today; avg. 900,000). The stock tapped the 10 day MVA twice the last 2 days, so that support looks firm if it gives up and pulls back before making another stab at a move over Monday's high (87.13). That is the move we are looking for in a rally. Huge money flow and great buying. Target: 100
BUY POINT: Over 87.13 on rising volume in a rally. Stop: 83
POSITION: Stock and/or November $80 calls to buy (GD KP).

MIMS (Mim Corp.; $9.28; -0.22; no options); Health services.
http://biz.yahoo.com/p/m/mims.html
STATUS: After Monday's strong move up from support at the 50 day MVA (now at 9.29), MIMS retraced completely Tuesday and today dropped below the 50 day to a low of 8.85; the stock did bounce up from there to close on top of the support level. Volume was higher at 1.4 million (avg. 617,272). We want to see the stock hold here for a strong bounce back up in a rally. Otherwise, it can find possible support at the low, or 9. On a strong bounce, look for a run up to the 12.40 range, near the September high of 12.58. Potential resistance at the 11 range. Previous target above 12.40: 14.50
BUY POINT: Aggressive: 10.15 (just above the 18 day MVA, 10.12) on rising volume in a rally. Stop: 9
POSITION: Stock only.

New (from the weekend):

PLCM (Polycom--$23.48; -1.58; optionable): Telecom: Processing Systems
http://biz.yahoo.com/p/p/plcm.html
STATUS: Continued to pull back after Friday's strong move up from support, the 10 day MVA (24 at the time); PLCM Monday raced to a high of 30 before initiating the pullback, which has brought the stock back down to the 50 day MVA. It tapped there on the low of 22.80, then bounced back to close above the 18 day MVA. Volume was higher (5 million; avg. 1.2 million) on the move. We are looking for a hold at these support levels for the stock to regroup and head back up. The 200 day MVA is at 25.25, just over the opening price of 25. Target on a bounce back over the 200 day: 32-34
BUY POINT: Aggressive: On a bounce from the 18 day MVA (23.27) on continued strong volume. Stop: 21.50 (just below price support at the 22 level).
POSITION: Stock and/or January $20 calls to buy (QHD AD; low open interests).

DRS (Drs Technologies; $33.99; +0.29; no options) Aerospace defense.
http://biz.yahoo.com/p/d/drs.html
STATUS: Made a move up Tuesday as volume fell back, then showed a tight doji Wednesday as the stock inched higher; volume was up on the move at 355,100 (avg. 91,590). DRS looks like it may be topping out here; we will see if it can hold support at 32.50 or higher until it can surge back up. The stock gapped up hugely 9-17, pulled back to the 10 day MVA then bounded back up starting last Thursday. After a pullback, we will continue to look at a target at 36-37.
BUY POINT: On a bounce from support at 32.50, on continued strong volume. Stop: 30.82
POSITIONS: Stock only.

FIMG (Fischer Imaging--$12.44; -0.45; no options): Health Services
http://biz.yahoo.com/p/f/fimg.html
STATUS: Pulling back to support (18 day MVA at 12.04), above which the stock closed today with volume dropping back quite sharply to 93,900 (avg. 114,000). Looking for a bounce back from that support; FIMG made a super break of resistance Friday (50 day and short term MVAs) on strong volume, then pulled back after reaching a Monday high of 13.95. That price tapped a level of resistance from a late August lateral consolidation, as did Tuesday's high (14.25). Initial target: 15.41 (August high).
BUY POINT: Aggressive: 12.90, after catching support at 12 or higher. Stop: 11.99.
POSITION: Stock.

PDX (Pediatrix Medical--$38.90; -0.65; optionable): Health Services
http://biz.yahoo.com/p/p/pdx.html
STATUS: Edged higher Tuesday, making another new all-time closing high (39.55). The stock turned back down from there today as volume dropped back to 224,900 (avg. 170,000). Support looks solid at 38, if the stock pulls back even that far (it closed at the level of closing and opening prices from the previous 2 sessions). PDX made a move off its 50 day MVA Monday, breaking resistance at the previous monthly highs that day. Target: 44
BUY POINT: For a pullback to 38 and bounce: Over 38.60 strong, above average volume. Stop: 37.24 (just below the 18 day MVA).
POSITION: Stock and/or November $35 calls to buy (PDX KG).

Trading Play: Short term target only

ROIL (Remington Oil & Gas--$11.44; -0.57; optionable): Oil & Gas
http://biz.yahoo.com/p/r/roil.html
STATUS: Lost the rolling pattern. Dropping for now.

CAT (Caterpillar--$44.07; -2.31; optionable): Manufacturing
http://biz.yahoo.com/p/c/cat.html
STATUS: Were looking for a trade up to the 200 day MVA (48.33), but Monday's move is as close at the stock got on that day's high of 47.41. It sold back today on strong volume, closing where we started looking at it this weekend. Dropping.

IMNX (Immunex--$16.85; -0.12; optionable); Drugs - Biotech.
http://biz.yahoo.com/p/i/imnx.html
STATUS: Formed the 17-week saucer/flat base (in a much larger base) since May and is currently pulling back to its 50 day MVA (16.66) the last three days as volume decreases satisfactorily (down to 6.8 million today; avg. 5.8 million). The stock tried to make a breakout over upper resistance in the pattern (at the 18.50 level) last week, and when it showed a Friday doji above the 18 day MVA on lower volume that's when we got interested. Now it looks ready to make a bounce from the 50 day MVA, which a rally would help nicely. Target on a breakout from the base: 200 day MVA at the 22.50 range.
BUY POINT: Aggressive: 17.50, on rising volume in a rally. Stop: 16.25 Breakout: 18.74 on continued strong volume. Stop: 17.50.
POSITION: Both buy points: Stock and/or December $15 calls to buy (IUU LC).

A group of stocks that are not necessarily in good patterns but in a rally can give stronger moves if the market gives us at least an oversold rally this week:

KLAC (Kla-Tencor--$32.68; -3.02; optionable): Semiconductor.
http://biz.yahoo.com/p/k/klac.html
STATUS: Did not perform as well as we wanted as we eyed a potential initial target at 40. After Friday's lunge up from the September low (30.46), KLAC topped out Tuesday at 36.29, opening just lower Wednesday and falling back down for the +3-point loss. Volume decreased to 9 million (avg. 7.2 million). It may rally back, but we aren't looking at positions from here.

EBAY (Ebay--$44.04; -2.85; optionable): Software
http://biz.yahoo.com/p/e/ebay.html
STATUS: Ended up as a put play on the update report, and the stock delivered on a move down from its 10 day MVA (47.93). We are looking at a target of the September low if it can break potential support at the range of the intraday low of 43.90. Watch positions here; the market may sell back a bit more before bouncing, but as we stated last night; puts from here may need to be closed quickly. Target: 41.50

MSCC (Microsemi--$25.56; -2.40; optionable): Semiconductor
http://biz.yahoo.com/p/m/mscc.html
STATUS: Could not muster the move we wanted as the market did not deliver a strong rally. The stock turned back down from its 50 day MVA (28.24) today, selling on rising volume of 1.5 million (avg. 894,000). If it doesn't hold at 25, can drop to the 200 day MVA at 23. No new positions.

INDEXES: We are going to see if we get a follow-through day with the market; if so, we will then look at making new trades on the indexes. For now, the market is too choppy to play them at this point with sentiment indicators as they are and the market still in a downtrend. Below, recently played indexes are updated and prices pinpointed where we think they can catch support intraday. If that happens, those support levels will be our targets for closing existing put plays, and we will issue alerts if we get a strong move either way from support.

SOX (Phili Semi--$370.63; -31.77; optionable):
STATUS: Headed down and may catch support at the September low of 363.52, last possible support level from here (besides today's intraday low of 369.44). The index opened a bit higher than Tuesday's closing price (402.40) then dropped from there.

OEX (Standard & Poors--$516.29; -1.63; optionable):
STATUS: Holding with a doji on a slight pullback on lower volume (1.5 million; avg. 1.15 million). Potential support near the low of 513.29, or at the 500 range. September low is 480.07.

DJX (1/100 Dj Indu--$85.67; -0.93; optionable):
STATUS: A small move down as the index showed a loose doji on decreasing volume of 1.5 million (avg. 1.2 million). Potential support is near the low of 85.27, at the level of Tuesday's low and that of 9-19, a week ago. Below that, the 82 range or the September low of 80.64.

CONTINUED PLAYS:

Semiconductors: Removed LSCC, which lost the rolling/trading range as of Tuesday. SMTL has sold off pretty hard since losing its pattern as of Monday; removed as well.

RFMD (Rf Micro--$16.29; -3.52; optionable): Integrated Circuits
http://biz.yahoo.com/p/r/rfmd.html
STATUS: Lost its tenuous hold at the 20 level support as it fell in the wash of a Nokia downgrade. The stock sold off on heavier volume (12.7 million; avg. 7.9 million). May be able to catch at 15, or lower at the 12.50 range. No new positions.

BREAKOUTS:

SZA (Suiza Foods--$63.00; +0.95; optionable): Food & Beverage
http://biz.yahoo.com/p/s/sza.html
STATUS: Just keeps on ticking this week, running up for the third day, but as volume continues to fall off, the stock will have to pull back. It hit a high of 63.60 before pulling back down, and while it did that to a much greater extent Monday and headed up next session, that was on higher volume. Can pull back to 60 (at the 10 day MVA) if it does not grab support at 61.11, a price hit twice on this run up. After a pullback, our target remains at 67. Super money flow and buying.
BUY POINT: On a move back up after a pullback to the 10 day MVA or higher. Stop: 58.95
POSITION: Stock and/or December $55 calls to buy, 50 open interests (SZA LK).

WEDGES, PENNANTS, and FLYING PLATEAUS (AND FLAGS): These are some of our favorite patterns as the moves can be explosive. In this market, however, we need to see the move on the breakout on strong volume.

None yet for this week.

BASING/TRADING RANGES:

PBG (Pepsi Bottling Group--$45.00; +1.75; optionable): Food & Beverage
http://biz.yahoo.com/p/p/pbg.html
STATUS: A nice recovery today after the stock gapped down (in a big way and on no news) on Tuesday's opening price to 41.50; that was well below the 50 day MVA (43.46) but the stock bounded back up that day, continuing the move Wednesday. PBG launched from the 50 day then ran up to the upper resistance level in the 4-month cup base (a very volatile base that may be better characterized as a flat base). We are looking for a breakout over the buy point of 45.85, but it will have to be on higher volume, which was down today at 704,000 (avg. 565,000). Still above average and strong, so we will see what the stock can muster. Support at the 18 day MVA (44.29). Target: 53-55.
BUY POINT: Breakout: 45.85, on minimum breakout volume of 848,000. Stop: 44 (just below the 18 day MVA).
POSITION: Stock and/or December $45 calls to buy (PBG LI).

SBC (Sbc Communications--$47.34; +0.19; optionable): Telecom
http://biz.yahoo.com/p/s/sbc.html
STATUS: Broke out yesterday from the cup with handle and inched higher today as volume fell back to 10.2 million (avg. 5.6 million). The stock remains a technical buy on the breakout up to 48.70, so we will see if volume can roll back in and support a renewed upside. SBC tapped a low at 46.33 that matches some highs from last week, so that level looks supportive. Target: 53-55
BUY POINT: A buy up to 48.70.
POSITION: Stock and/or January $40 or $45 calls to buy (SBC AH or AI). Check deltas with your broker; they are low at the time of this writing.

AOT (Apogent Tech--$22.99; -0.34; optionable): Health Services.
http://biz.yahoo.com/p/a/aot.html
STATUS: Trying to hold support as the stock dips back in the base, just slipping under support at an up trendline connecting April and July lows. Volume was down to 207,300 (avg. 344,318) and the stock bounced back from a low of 22.75. If it cannot get back over the trendline (and other price support at the 23 and 23.05 levels), it can fall to the 200 day MVA at 22. Previous target: 30.
BUY POINT: Aggressive: 24 (just above the 50 day) on continued strong volume. Stop: 22.30 Breakout: 25.93, on continued strong volume (minimum breakout volume is 500,000). Stop: 24.
POSITION: Stock and/or November $20 calls to buy ((AOT KD; 0 open interests).

Good Investing!
Jon L. Johnson and your Technical Traders Report Team

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 in 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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