stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: AMMD; BAX; BELM; CUTR; KERX; ORBK; PSSI; WEBX

Wednesday night play results
DSCO: Still working on the quiet handle.
GTRC: Low volume breather after the strong breakout move Wednesday.
MSSN: Volume fell off the table as MSSN held flat.
CUTR: Nice move on nice volume.
USNA: Strong volume, still in the handle. Looks ready.

New Plays:

Play Date: 07/28/2005
MRGE (Merge Technologies--$19.46; +0.3; optionable): Healthcare information services
http://biz.yahoo.com/p/m/mrge.html
STATUS: Cup w/handle. MRGE rallied nicely the second half of 2004 and needed a breather. It then fell into the current 7 month base. The past 6 weeks it has worked on a handle to the pattern, holding over the 200 day SMA (18.57) as it does (broke back over that level in early June). Positive 4 to 3 accumulation in the base shows net buying. In addition to that, money flow is surging higher. Setting up well. Just waiting for the strong volume breakout move.
Volume: 124.616K Avg Volume: 138.161K
BUY POINT: $19.95 Volume=207K Target=$22.95 Stop=$18.72
POSITION: MQP LD - Dec. $20c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/mrge.html

Play Date: 07/28/2005
NOVA (Novamed Eyecare--$7.48; +0.33; no options): Business management
http://biz.yahoo.com/p/n/nova.html
STATUS: Cup w/handle. Volume was up and well above average Thursday as NOVA rallied to start the breakout from a nicely formed 7 month pattern. Strong 8 to 4 accumulation in the pattern (8 up price weeks on rising volume to 4 down price weeks on rising volume) shows plenty of buying, setting up the breakout move. Solid money flow. Breaking to a 5 year high, and that means no overhead resistance to push it back down on the breakout.
Volume: 144.995K Avg Volume: 100K
BUY POINT: $7.59 Volume=170K Target=$9.22 Stop=$7.08
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nova.html

Play Date: 07/28/2005
PUMP (Animas--$21.06; 0; no options): Medical appliances
http://biz.yahoo.com/p/p/pump.html
STATUS: Cup w/handle. Nice, nice 18 week base has formed using the 200 day SMA (18.31) as support on the May low in the pattern. PUMP was a new issue in May 2004, and this is the first real base formed. Positive accumulation in the base shows net buying and money flow is very strong, running interference for price. Ready to break to a new all-time high and give us a good run.
Volume: 76.702K Avg Volume: 122.646K
BUY POINT: $21.48 Volume=184K Target=$24.78 Stop=$20.56
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/pump.html

Continuing plays ready to move:

Play Date: 07/16/2005
RBAK (Redback Networks--$8.04; +0.29; optionable): Telecom networking equipment
http://biz.yahoo.com/p/r/rbak.html
After Hours: $8.03
STATUS: Cup w/handle. Still working on the three week handle to its 6 month base that formed on the May low at the 200 day SMA (5.87). It has gone about its business forming the handle the pat three weeks after a strong surge to start the month. It is just about ready to make the move to break it out and give us a nice run higher.
Volume: 493.326K Avg Volume: 557.495K
BUY POINT: $8.11 Volume=750K Target=$9.71 Stop=$7.54
POSITION: RBU LU - Dec. $7.50c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/rbak.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, CELG, BLUD, BR, COH, HW, PSYS, RTSX, STN

AAPL: The handle continues to form. About 3 or 4 more sessions of this and it is golden.

CELG: Volume was up as CELG moved off the 10 day EMA. Ready to resume the move.

HW: Hit 45.75 on the high before giving back $2 of the move. What a break the past two sessions

PSYS: Nice rebound off the 50 day EMA on rising but just average volume.

STN: Nice earnings gapped it lower but then rallied it to a new high on strong trade. Solid.

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.

DE: Nothing runs like a Deere and now it makes a 4 wheel drive Gator that is really cool. Nice 8 month cup with handle base started the breakout Wednesday on strong volume.. A test would be good entry point.

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.

stock ticker
stock recommendation