stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: EFJI; ESV; MNTA; NGAS; PLLL

Monday night play results:
ESV: Strong move on strong volume continues.
AU: Sold back on lower volume, holding above the 10 day EMA.
SONC: Started lower from the 10 day EMA.
BGC: Holding steady on lower, average volume.
EFJI: Nice rally higher on strong volume.
PDE: Huge volume as PDE moves toward a breakout.
PWAV: Not a strong break higher.

Upside:

Play Date: 09/27/2005
CASY (Caseys General Stores--$22.70; +0.78; no options): Grocery stores
http://biz.yahoo.com/p/c/casy.html
After Hours: $22.70
STATUS: Cup w/handle breakout. Consumer staples are the game now and CASY sells basics. CASY is making the breakout move from its 9 week pattern, rallying Tuesday on very strong volume to a new all-time high. Nice base on base pattern the past 11 months, a nice 7 month cup with handle that broke out and ran before setting up the current base. Strong money flow is leading higher and relative strength broke out, a good confirmation of the breakout move. Looking to move in on a continued break higher and then again on the test of the breakout move.
Volume: 727.302K Avg Volume: 243.328K
BUY POINT: $22.89 Volume=315K Target=$26.95 Stop=$21.77
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/casy.html

Play Date: 09/27/2005
CNVR (Convera Corp.--$12.17; +0.57; optionable): Multimedia graphics software
http://biz.yahoo.com/p/c/cnvr.html
STATUS: Cup w/handle. CNVR came to life in July after a long slumber. It needed a rest after that strong move, and this 8 week pattern has worked to consolidate that move. Has held the 18 day EMA (10.93) on the base, a near support level that shows the stock has strength. Money flow is strong and running higher ahead of price. Relative strength is ready for the breakout as well; like to see that as a stock makes its breakout move. Strong volume Tuesday as CNVR surged higher off the 10 day EMA (11.30). Ready to move in as CNVR continues the breakout move.
Volume: 922.117K Avg Volume: 410.743K
BUY POINT: $12.55 Volume=616K Target=$15.95 Stop=$11.69
POSITION: XQA AV - Jan. $12.50c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/cnvr.html

Play Date: 09/27/2005
DESC (Distributed Energy Systems--$8.06; +0.89; no options): Industrial electric equipment for energy market
http://biz.yahoo.com/p/d/desc.html
After Hours: $7.90
STATUS: Ascending triangle. Volume exploded Tuesday as DESC on no real news, breaking higher from an 8 week triangle that formed walking up the 18 day EMA (6.99) below a constant top at 7.50. Outstanding 5 to 0 accumulation in the pattern (5 up price weeks on rising volume to 0 down price weeks on rising volume) shows tremendous buying. Money flow is surging. Relative strength broke out on the move, a good confirmation. Hitting on all cylinders. Will look at a position on the continued breakout and then a further buy when it tests the move and starts back up. Very nice.
Volume: 3.35M Avg Volume: 1.021M
BUY POINT: $8.17 Volume=1.1M Target=$9.95 Stop=$7.68
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/desc.html

Continuing play ready to move:

Play Date: 09/10/2005
PDE (Pride International--$27.30; +0.39; optionable): Oil and gas service company
http://biz.yahoo.com/p/p/pde.html
STATUS: Ascending triangle. Volume exploded Tuesday as PDE banged up against the breakout point again. Looks as if it is ready to make the breakout from its 7 month base that has used the 50 day EMA as support on the way up and below a constant top at 27. Very strong with money flow leading the way and relative strength already making the breakout, a very bullish indication for the stock price.
Volume: 4.427M Avg Volume: 1.778M
BUY POINT: $27.17 Volume=2.5M Target=$31.25 Stop=$26.48
POSITION: JDE AE - Jan. $25c (69 delta) &/or Stock
http://www.investmenthouse.com/cd/pde.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, BLUDE, BR, COH, HW, PSYS, RTSX, STN

CELG: Still ready to make the next move.

BLUDE: Trying to come up with a change of character, breaking back above the 50 day EMA though volume did not move with it yet.

RTSX: Volume was up as it continued the move. Still needs to clear the recent September highs to continue the run.

STN: Testing the 200 day SMA after retaking that level Friday. This is where it has to hold or fold.

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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