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Begin part 3 of 3

THE PLAYS

Good movers: AXLN; CMVT; CWTR; GLW; KFX; NBR; RBAK; SGMS; THE; USNA

Monday night play results
ALXN: Super breakout on strong volume.
KLAC: Another low volume day of rest. Getting ready for the next move.
SGMS: Nice volume as SGMS continues its break higher.

New Plays:

Play Date: 08/02/2005
AHG (Apria Healthcare Group--$34.89; +1.01; optionable): Home health care
http://biz.yahoo.com/p/a/ahg.html
STATUS: Test 50 day EMA. AHG posted a massive breakout in early June, blasting out of a 5.5 month base. Big move that took it to a 9 year high. It has spent the past 7 weeks testing that move, coming to rest at the 50 day EMA (33.78) where volume spiked up as the big buyers came in to support it. Volume then backed off the past week and then returned Tuesday with a big move off the 50 day. Looking to move in when it clears the recent highs near 35.
Volume: 718.8K Avg Volume: 651.626K
BUY POINT: $35.18 Volume=775K Target=$39.75 Stop=$33.68
POSITION: AHG LG - Dec. $35c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/ahg.html

Play Date: 08/02/2005
ATMI (ATMI, Inc.--$32.35; +0.44; optionable): Chip equipment
http://biz.yahoo.com/p/a/atmi.html
After Hours: $32.35
STATUS: Breakout test. ATMI is setting up for a 3.5 year high, coming back to test the 18 day EMA (31.86) the past week, showing a series of dojis at that level as it takes a breather and sets up for the next run. ATMI broke out from a 16 week cup in early June and rallied to a stones throw from 34. Great move and now a nice test to set up the next run in the breakout. This is its second test of the 18 day after the breakout, leaving it plenty of room to the upside. Strong money flow is leading higher as ATMI moves back up off the 18 day. Want to see more volume as it continues the move. If we see it, we move too.
Volume: 457.471K Avg Volume: 478.018K
BUY POINT: $32.75 Volume=717K Target=$37.55 Stop=$31.72
POSITION: ASQ LF - Dec. $30c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/atmi.html

Play Date: 08/02/2005
GOLD (Randgold Resources--$13.91; +0.53; optionable): Gold
http://biz.yahoo.com/p/g/gold.html
After Hours: $13.95
STATUS: Test 50 day EMA. GOLD broke out from a 13 week base in mid-June, rallying to 15 on the break. It needed a breather and then spent the next 6 weeks testing that move. It held the 50 day EMA (13.36) the past two weeks and then exploded higher on a strong volume surge Tuesday, resuming the breakout move. Excellent 7:3 accumulation (7 up price weeks on rising volume to 3 down price weeks on rising volume) in the base set up the breakout, and strong money flow is leading GOLD higher as it comes off of the 50 day. Ready to move in on a further volume move higher.
Volume: 543.195K Avg Volume: 328.515K
BUY POINT: $14.05 Volume=400K Target=$16.88 Stop=$13.34
POSITION: GUD LV - Dec. $12.50c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/gold.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: Nice test of the 18 day EMA Monday looks to be shaking out the last sellers in the handle. Surprising us by how well it is setting up.

COH: Some wild action as it tapped the 50 day EMA on the low and rebounded, almost recovering the 18 day EMA.

RTSX: Deep test to the 50 day EMA and a big volume rebound to hold the 18 day EMA. Looks ready to make the next move.

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.

HOLX: Big gap higher last week after undercutting the 50 day EMA. The move broke it out of a 7 month flat/ascending base. It move took it to its 1996 high. Naturally taking a breather after all that work, but it is not giving up the gains. Not bad.

KYPH: Broke out from a 20 month flat base in June and is making the third test of the 10 day EMA. On strong breakouts a stocks will make 4 to 5 bounces off the short term moving averages (10 or 18 day) before needing a deeper test toward the 50 day EMA. Very solid leader.

ARD: Blasted higher Friday and Monday on strong trade, moving out of a 4 month cup w/handle base. Showed a big doji Tuesday and that often indicates a bit of a pullback to come. A test back to 15ish (the March high before it fell into the base) that holds and starts back up on strong volume is a good entry point.

PARL: A leader since breaking out in early 2004. It has rallied six-fold since then. Broke out form a 4.5 month base in early June and has rallied up the 18 day EMA since. Flattening out the past four weeks on low volume. Don't really like the look of it at this point; pattern is a bit ambiguous.

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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