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Begin part 3 of 3

THE PLAYS

Good movers: BOOM; BR; SJR

Wednesday night play results
AVN: Holding near the 18 day EMA on very low volume.
HXL: Huge volume but HXL could not do anything with it. Still looks good.
SJR: Nice move on strong volume.

New Plays:

Play Date: 08/04/2005
FIC (Fair Isaac & Co.--$38.09; +0.06; optionable): Analytic software to automate decisions
http://biz.yahoo.com/p/f/fic.html
STATUS: Ascending triangle. Volume has swelled the past week as FIC has moved toward the breakout from its 7 week pattern that formed on the heels of a 5.5 month cup with handle base. Another base on base pattern that works to clear out the sellers. Solid 9 to 4 accumulation in the bases (9 up price weeks on rising volume to 4 down price weeks on rising volume) has set the breakout move. With this volume surging and money flow rallying ahead of price we are looking for FIC to make the breakout move soon.
Volume: 600.3K Avg Volume: 373.468K
BUY POINT: $38.42 Volume=550K Target=$43.25 Stop=$37.41
POSITION: FIC AG - Jan. $35c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/fic.html

Play Date: 08/04/2005
END (Endeavor International--$4.13; +0.24; no options): Independent oil and gas
http://biz.yahoo.com/p/e/end.html
STATUS: Double bottom w/handle. A new issued in March 2004, END declined through August of that year before rallying with the market. Peaked in October and slipped into the current 9 month base. After a nice low volume pullback the past two weeks to put the finishing touches on the base. Volume has surged the past two sessions, moving back above average as END moves off of the 18 day EMA (3.91) support. Strong surge Thursday, and END looks ready to follow the surging money flow higher.
Volume: 578.7K Avg Volume: 208.985K
BUY POINT: $4.25 Volume=313K Target=$5.12 Stop=$3.95
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/end.html

Play Date: 08/04/2005
NWRE (Neoware--$11.48; +0.31; optionable): PC networking
http://biz.yahoo.com/p/n/nwre.html
STATUS: Cup w/handle. Strong volume Thursday after NWRE raised its Q4 revenue guidance up 29%. That moved it off the 18 day EMA (11.11) that acted as support for the four week handle to the 21 week base. Solid 6 to 3 accumulation in the pattern has set up the foundation for the breakout and run higher. Money flow is excellent as well, moving out ahead of price. NWRE has formed this base coming off the bottom of a long 15 month decline. Looking solid as it starts toward the breakout move.
Volume: 151.853K Avg Volume: 105K
BUY POINT: $11.68 Volume=150K Target=$13.95 Stop=$11.08
POSITION: QQA LB - Dec. $10c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/nwre.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: Low volume test of the 18 day EMA on the low. Just may have completed the handle.

HW: Ready for yet another leg higher.

PSYS: On the 50 day EMA. This is where it holds or folds.

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.

ASPM: Marching higher since Q1 2003, ASPM broke out from a 7 week base in late July. It is making a very nice test of that move, holding the 18 day EMA on very low volume

Downide:

DTPI: Peaked in March and then trending lower ever since. Tried a recovery in June, but bad news sent it diving lower. It is trending lower below the 10 day EMA now, rallying higher from a nasty gap lower and rebounding Monday. Now back at the 10 day EMA and looking wobbly.

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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