stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers: BCON; CKCM; CUTR; OPMR; RBAK; VDSI

Thursday night play results
MRGE: Strong volume surge as it held steady; a 'get ready' spike.
NOVA: Volume was up and NOVA was up and down. Still ready to go.
PUMP: Working on the handle on continued below average volume.
RBAK: Volume was back over average as RBAK started the move we want.

New Plays:

Play Date: 07/30/2005
DCGN (Decode Genetics--$9.80; +0.39; optionable): Drugs and DNA diagnostics re inherited causes of common diseases.
http://biz.yahoo.com/p/d/dcgn.html
After Hours: $9.80
Earnings: 8-2-05 after the close.
STATUS: Double bottom w/handle. DCGN is working on a three week handle to its 18 month base. It is holding at the 18 day EMA (9.56) as it makes the lower volume test that shakes out the last sellers remaining after the long base. Accumulation in the pattern is a solid 13 to 9 (13 up price weeks on rising volume to 9 down price weeks on rising volume), showing net buying and setting up the foundation for the breakout to come. Strong money flow is pointing the way to the breakout. Looking for volume to shoot back up as it makes the move through they buy point.
Volume: 357.961K Avg Volume: 485.273K
BUY POINT: $10.18 Volume=728K Target=$12.22 Stop=$9.52
POSITION: QDB LB - Dec. $10c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/dcgn.html

Play Date: 07/30/2005
ELOS (Syneron Medical--$38.55; -0.77; optionable): Medical appliances
http://biz.yahoo.com/p/e/elos.html
Earnings: 8-4-05
STATUS: Cup w/handle. Taking another run at ELOS as it has eased back to its 18 day EMA (38.24), forming the handle to an 8 month base. Nice low volume on the pullback and a nice tight range as well show a nice shakeout before the breakout. Solid 10 to 6 accumulation in the base is setting up the breakout move. Nice volume in June ahead of the handle, and looking for it to surge back up as it makes the move through the buy point.
Volume: 321.232K Avg Volume: 862.654K
BUY POINT: $40.22 Volume=1.3M Target=$46 Stop=$38.21
POSITION: QOE LH - Dec. $40c (49 delta) &/or Stock
http://www.investmenthouse.com/cd/elos.html

Play Date: 07/30/2005
WITS (Witness Systems--$19.51; +1.11; optionable): VOIP, performance analysis, etc.
http://biz.yahoo.com/p/w/wits.html
After Hours: $19.51
STATUS: Double bottom w/handle. WITS started the breakout move Friday from a 24 week base that formed roughly over the 200 day SMA (17.28), a key institutional support level where they buy or sell. They were buying WITS and it rallied to form the right side of the base. Nice handle the two weeks leading up to earnings on Thursday, fading back to the 18 day EMA (18.12). Friday it shot higher on volume after the earnings, starting the breakout move. Strong 8 to 3 accumulation in the pattern shows plenty of buying that set up this breakout. Strong money flow is leading the way as well. Moving toward a 5 year high. Like that earnings are already out as well.
Volume: 750.587K Avg Volume: 338.386K
BUY POINT: $19.68 Volume=475K Target=$22.89 Stop=$18.57
POSITION: UPJ LW - Dec. $17.50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/wits.html

New buy point on a continuing play:

Play Date: 07/30/2005
INFA (Informatica--$10.57; -0.09; optionable): Integration software
http://biz.yahoo.com/p/i/infa.html
After Hours: $10.57
STATUS: Breakout test. Big breakout after earnings released on 7-21-05, sending INFA to 11 on that move. It backed off the last two sessions to end the week, holding the 10 day EMA (10.26) on the intraday lows and rebounding to close. This test follows the breakout from a long 8.5 month flat base. Strong money flow is leading higher, and after this test is over (may take another session or two), INFA is ready to follow it.
Volume: 726.655K Avg Volume: 1.113M
BUY POINT: $10.72 Volume=12M Target=$12.48 Stop=$10.21
POSITION: UYF LB - Dec. $10c (55 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, CELG, BLUD, BR, COH, HW, PSYS, RTSX, STN

AAPL: High volume dump back to the 18 day EMA. Still trying to form the handle.

BLUD: Back up to the 200 day SMA. It has to clear this level to stay alive, but it looks as if it has slipped into a longer term base that could keep it occupied for the next couple of months.

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.

ADTN: After a long decline that started in late 2003 and lasted through April 2005, ADTN has started to recover. After rallying off the low and breaking back above the 200 day SMA in May it has formed a 7 week case over the 50 day EMA. Has cleared some interim resistance and is preparing for a further move.

AKAM: Solid volume the past fours sessions as AKAM moved off the 18 day EMA as it tries to breakout from a 13 month base. Decent earnings last week.

THQI: Moving higher out of a flying plateau that formed the past two weeks after the early July breakout from its 5 month base. Would like to see more volume as it continues higher.

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