stock ticker, stock recommendation

Begin part 3 of 3

Correction on DESC in the Continuing Play Table:

DESC 09/27 Asc Tri 8.06 +0.19 8.17 9.95 2.1M 1.1M 7.68
Buy Not Issued. Gapped higher and tapped 8.37 at the intraday high, but gave back much of the move on stronger above average volume. Did not enter the play because stock spent much of the session coming off the day's high, forming a doji after that strong Tuesday move. Expecting a bit of a pullback here adn then looking for a clear and decisive move with strong volume.

THE PLAYS

Good movers: CHB; CNVR; ESV; FIC; GLBL; PDE; REDF

Wednesday night play results:
TRCA: Still testing the 18 day EMA.
WGII: Gapped higher and moving on some above average volume. Still solid.
XLY: Dove lower and then rebounded. Still below the 10 day EMA.

Upside:

Play Date: 09/29/2005
HYDL (Hydril--$68.44; +2.69; optionable): Oil and gas services company
http://biz.yahoo.com/p/h/hydl.html
After Hours: $68.47
STATUS: Ascending base. Nice volume Thursday as HYDL posted a nice gain, moving toward the breakout from its 7 week base that formed making higher lows along the 50 day EMA (64.03). This base formed right on the heels of the July breakout from a 20 week cup base. Like these base on base patterns as they set up strong moves. Strong 3 to 0 accumulation in the base (3 up price weeks on rising volume to 0 down price weeks on rising volume) shows plenty of buying setting up the breakout to a new all-time high. Relative strength is ready to breakout as well, a good corroboration of the price move.
Volume: 305.479K Avg Volume: 245.095K
BUY POINT: $69.25 Volume=368K Target=$82.95 Stop=$67.45
POSITION: HBQ CN - Mar. $70c (52 delta) &/or Stock
http://www.investmenthouse.com/cd/hydl.html

Play Date: 09/29/2005
TERN (Terayon Communication--$3.9; +0.14; no options): Telecom processing systems
http://biz.yahoo.com/p/t/tern.html
STATUS: Test 18 day EMA. After a long decline that bottomed in 2004 TERN rallied October to February. It then fell into the current 7 month saucer base, forming along the 50 day EMA (3.49). Accumulation is excellent at 7 to 2 (7 up price weeks on rising volume to 2 down price weeks on rising volume), showing a lot of buying. Money flow is strong as well, a good corroboration. It gets better; relative strength is breaking out also. After a strong move mid-month TERN tested back tot eh 18 day EMA (3.72) this week, bouncing sharply off that level Thursday. Looks ready to put all of that accumulation and money flow to work.
Volume: 681.719K Avg Volume: 756.418K
BUY POINT: $4.02 Volume=1M Target=$4.88 Stop=$3.74
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/tern.html

Play Date: 09/29/2005
WLT (Walter Industries--$48.9; +1.9; optionable): Manufactured housing
http://biz.yahoo.com/p/w/wlt.html
STATUS: Ascending triangle. Strong volume Thursday as WLT started the break higher from its 25 week triangle. Solid 7 to 5 accumulation in the pattern (7 up price weeks on rising volume to 5 down price weeks on rising volume) has set the stage for this breakout. Relative strength is breaking out as well, a good confirmation of the move. This is a post-storm play as this is Jim Walter homes, and there will be plenty of demand in the aftermath.
Volume: 1.388M Avg Volume: 892.294K
BUY POINT: $49.21 Volume=900K Target=$58.92 Stop=$46.25
POSITION: WLT AJ - Jan. $50c (50 delta) &/or Stock
http://www.investmenthouse.com/cd/wlt.html

New buy point on continuing play:

Play Date: 09/29/2005
PSYS (Psychiatric Solutions--$53.80; +0.12; optionable): Specialized health services
http://biz.yahoo.com/p/p/psys.html
STATUS: Test breakout. PSYS surged out of a 5 month base on base pattern in early September, rallied to 55, and then fell into the current two week lateral move over the 10 day EMA (53.16). Has gotten very quiet the past week as volume fell below average as PSYS wanders sideways. Strong money flow is leading higher. Looks ready for the next breakout to another all-time high.
Volume: 227.766K Avg Volume: 393.671K
BUY POINT: $54.05 Volume=500K Target=$61.95 Stop=$52.21
POSITION: BYU CK - Mar. $55c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/psys.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

AAPL: Came right back off the 18 day EMA on lower though still above average volume.

CELG: Holding tough at the 18 day EMA after getting the dips toward the 50 day EMA Wednesday.

RTSX: Ready for the next break higher as it fought off the Wednesday higher volume selling.

STN: Hanging on by its teeth at the 200 day SMA.

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.

INFA: Thought about putting this one back on the report. Blasted higher Thursday on strong volume after a test of the 50 day EMA the past week. This is a continuation of the breakout from a big 21 month cup with handle base.

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