us stock market, stock split

Begin part 3 of 3

THE PLAYS

Good Movers: IDIX; RTH; XLY; VAL

Tuesday night play results:
IIJI: Rallied well intraday but gave the move back. Still ready despite the market.
OPTN: Nice low volume test of 10 day EMA. Solid.
RBAK: Tapped the 50 day EMA on the low. Still not bad.
TRAD: Testing the 10 day EMA. Pattern intact.

Upside:

Play Date: 10/05/2005
KONG (Kongzhong--$13.38; -0.33; optionable): Chinese wireless interactive entertainment, etc.
http://biz.yahoo.com/p/k/kong.html
STATUS: Breakout test. KONG was a new issue in July 2004 and formed its first base the past 10 months, a reverse head and shoulders. Big breakout in late September, and with the selling the past two days it is making the first test, coming back to tap the 18 day EMA (12.66) Wednesday before rebounding to hold the 10 day EMA (13.25). Strong 12 to 4 accumulation in the base (12 up price weeks on rising volume to 4 down price weeks on rising volume) shows plenty of buying. Strong money flow, relative strength breakout, etc. In short it has all of the attributes you like. Nice pullback and looking for the rebound to move back in.
Volume: 581.859K Avg Volume: 255.45K
BUY POINT: $13.65 Volume=383K Target=$16.75 Stop=$13.11
POSITION: QKR CV - Mar. $12.50c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/kong.html

Play Date: 10/05/2005
NIHD (NII Hldgs--$80.97; -2.00; optionable): Wireless telecom
http://biz.yahoo.com/p/n/nihd.html
After Hours: $80.50
STATUS: Breakout test. Market leader testing back off a recent high. NIHD broke out from a 7 week flat base to end September. It rallied to 86 and in the selling the past two days it is making the test, filling the gap from the breakout. Excellent 4 to 1 accumulation in the base shows plenty of buying. The test is what you would expect in the selling, and it tapped at the 18 day EMA (79.64) on the low and then recouped some losses. Strong money flow and a relative strength breakout, again what you would expect from a strong leader. After this test we are looking to move in, getting a nice entry point.
Volume: 1.241M Avg Volume: 676.503K
BUY POINT: $81.35 Volume=1M Target=$93.95 Stop=$79.32
POSITION: QHQ AP - Jan. $80c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/nihd.html

Play Date: 10/01/2005
WIRE (Encore Wire--$16.42; +0.08; optionable): Industrial electrical equipment
http://biz.yahoo.com/p/w/wire.html
STATUS: Flying plateau. Strong volume Wednesday as WIRE started to break higher from its lateral range but could not hold the move to the close. WIRE split in August 2004 and did basically nothing until May when it started off its low and rallied well. It fell into a handle in August and early September to its 11 month cup with handle base. It then broke out on strong volume two weeks back. It has moved laterally since in a very tight, narrow range as the 10 day EMA rose to meet it. That is often the catalyst for the next run higher, i.e. when the 10 day EMA kisses the stock and sends it back up. Strong volume Thursday as WIRE showed a tight doji; that was a 'get ready' spike, telling us to be ready for the next move higher. Strong money flow is out in front and accumulation during the past 8 weeks is a solid 5 to 0 (5 up price weeks on rising volume to 0 down price weeks on rising volume), showing more than enough buying to push the stock higher in a continued breakout run.
Volume: 238.971K Avg Volume: 115.815K
BUY POINT: $16.65 Volume=170K Target=$19.75 Stop=$15.78
POSITION: EJO BC - Feb. $15c (65 delta) &/or Stock
http://www.investmenthouse.com/cs/wire.html

Play Date: 10/05/2005
WOOF (VCA Antech--$25; -0.28; optionable): Veterinary services
http://biz.yahoo.com/p/w/woof.html
STATUS: Cup w/handle. WOOF is using the market selling to form a handle to its 15 week base, setting up for the breakout that will take it to a new all-time high. The base formed along the 50 day EMA (24.25), using this key support as it builds the pattern. Strong money flow. Relative strength ready for a new breakout. A market leader and it is setting up a nice base for a new entry point.
Volume: 651.704K Avg Volume: 407.345K
BUY POINT: $25.32 Volume=611K Target=$29.45 Stop=$24.57
POSITION: QWF AE - Jan. $25c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/woof.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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 in 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.

us stock market
stock split