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Begin part 3 of 3

THE PLAYS

Good movers: FCN; WCC

Thursday night play results:
OSUR: Late jump higher & late volume. Still looks ready.
PETS: Fell further in the test of the early week jump higher. Filled the gap and rebounded.
SAY: Ready to move in as it continues higher.
CCI: Fell back on lower though still strong volume. Has more work to do in this lateral move to set the breakout.

Upside:

Play Date: 10/29/2005
FCX (Freeport McMoran--$49.36; +1.54; optionable): Copper
http://biz.yahoo.com/p/f/fcx.html
After Hours: $49.36
STATUS: Double bottom w/handle. A neat little pattern has formed over the 50 day EMA (45.26), part of a base on base pattern that combines a 6.5 month cup with handle and breakout with the current 5 week pattern. These really shake out the sellers and set up a stronger move higher. Accumulation is a strong 14 to 9 in the two patterns (14 up price weeks on rising volume to 9 down price weeks on rising volume), showing plenty of buyers in the stock. Relative strength broke out ahead of price, a very bullish indication for the price. Looking for volume to run back up as FCX starts the break higher. Top rated fundamentals along with an excellent pattern.
Volume: 2.905M Avg Volume: 2.76M
BUY POINT: $49.75 Volume=4.1M Target=$58.95 Stop=$47.04
POSITION: FCX BJ - Feb. $50c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/fcx.html

Play Date: 10/29/2005
FLSH (M-Systems Flash Disk--$30.84; -0.33; optionable): Semiconductors
http://biz.yahoo.com/p/f/flsh.html
After Hours: $30.50
STATUS: Test 18 day EMA. FLSH broke out in early September from a 6 month double bottom with handle base and has rallied higher. It is making a lower volume test of the 18 day EMA (30.26), a level that acts as support as a strong stock rallies higher. Friday it reached down to that level on the intraday low and rebounded on very strong volume. Looking for that to set the rebound and continue FLSH higher. Strong stock with great fundamentals to go along with the solid technical move.
Volume: 1.758M Avg Volume: 879.564K
BUY POINT: $31.65 Volume=1.3M Target=$37.75 Stop=$29.89
POSITION: FFU DF - Apr. $30c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/flsh.html

Play Date: 10/29/2005
INFA (Informatica--$11.92; +0.15; optionable): Enterprise software
http://biz.yahoo.com/p/i/infa.html
STATUS: Cup w/handle. INFA is working on an 8 week handle to a long 22 month base. INFA is a solid stock with top flight fundamental credentials to go along with the strong pattern. It got a bit wild two Fridays back when it reported earnings but was downgraded. It fell but then immediately rebounded to continue the handle. That shakeout and strong recovery has set the breakout and we are just going to be patient and let it show us the breakout move.
Volume: 726.895K Avg Volume: 1.418M
BUY POINT: $12.28 Volume=2.1M Target=$14.85 Stop=$11.55
POSITION: UYF CV - Mar. $12.50c (51 delta) &/or Stock
http://www.investmenthouse.com/cd/infa.html

Play Date: 10/29/2005
WOOF (VCA Antech--$25.39; -0.22; optionable): Veterinary
http://biz.yahoo.com/p/w/woof.html
After Hours: $25.39
STATUS: Breakout test. Strong earnings shot WOOF higher Wednesday, breaking it out of a 17 week base on strong, above average volume. Thursday and Friday it faded back to test the move on lower, average volume. Strong money flow and positive accumulation going hand in hand in setting up the move. Relative strength broke out as well, a good corroboration. Looking for a return of volume as WOOF starts back up to enter the play. Top rated sales and earnings to match the strong pattern that is ready for a new all-time high.
Volume: 478.341K Avg Volume: 372.82K
BUY POINT: $25.88 Volume=559K Target=$29.95 Stop=$24.55
POSITION: QWF CE - Mar. $25c (57 delta) &/or Stock
http://www.investmenthouse.com/cd/woof.html

Continuing plays ready to move:

BMD
DBRN
ISSX
NVDA
OSUR
SAY


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, BR, COH, NVDA, PSYS, RTSX, STN, UNH

AAPL: Sold to he 18 day EMA on rising, above average volume. Needs to hold here.

CELG: Nice low volume lateral move over the 10 day EMA.

NVDA: Good test lower and volume recovery to hold the 50 day EMA. Looks ready.

PSYS: Strong earnings and strong move off the 50 day EMA.

UNH: Excellent volume recovery off the 50 day EMA.


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.

ARNA: Short ascending base over the 50 day EMA the past four weeks after a three month rally up that support level. Trying to set a new foundation for the next move.

MAIN: Nice ascending triangle the past 10 weeks as MAIN works higher up the 50 day EMA. Very low volume the past two weeks as it works laterally over that support. TGI Friday's, etc. A breakout takes it to a 4 year high.

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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