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Begin part 3 of 3

THE PLAYS

Good movers: BCSI, CHS, COH, DIOD, DNA, HCC, HOLX, IDXX, MRVL, SMTS, TRAD, UNH

Wednesday night play results:
COH: Solid price move on so-so volume as COH heads for the breakout again.
HRS: Nice test of the 10 day EMA and rebound.
MSTR: Up off the 50 day EMA on rising volume. More trade and it is a buy.
PNRA: Heading toward the breakout but needs more trade.

Upside:

Play Date: 11/10/2005
QSII (Quality Systems--$71.72; +2.02; optionable): Healthcare information services
http://biz.yahoo.com/p/q/qsii.html
After Hours: $71.10
STATUS: Flat base. QSII is a top-rated stock in earnings and sales as well as in its nice 12 week flat base or trading range that formed over the 50 day EMA (66.47). Excellent 4 to 1 accumulation in the base (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buying as it works laterally to consolidate its January to August run; the big money is using this quiet time to acquire more shares. Tried the move last week but faded back as the market was not ready. Thursday it was climbing back to the highs on rising trade. Just being patient and letting QSII show us the breakout move.
Volume: 178.858K Avg Volume: 248.086K
BUY POINT: $72.05 Volume=372K Target=$82.85 Stop=$68.12
POSITION: QCR CO - Mar. $75c (47 delta) or QCR DN - Mar. $70c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/qsii.html

Play Date: 11/10/2005
VAS (Viasys Healthcare--$26.93; -0.08; optionable): Medical equipment
http://biz.yahoo.com/p/v/vas.html
STATUS: Breakout test. VAS broke higher last week on strong volume, moving out of a 9 week cup base sporting outstanding 5 to 1 accumulation (5 up price weeks on rising volume to 1 down price weeks on rising volume) and surging money flow. The move took VAS to an all-time high and this is a good test of that move. It may come back further toward the 10 day EMA (25.91), but we like how it tested lower Thursday and then rebounded and recouped most of its session loss. Ready to move in as it continues higher and through the buy point on strong volume.
Volume: 351.6K Avg Volume: 235K
BUY POINT: $27.55 Volume=350K Target=$31.95 Stop=$26.25
POSITION: VAS DE - Apr. $25c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/vas.html

New buy points on current positions:

Play Date: 11/10/2005
BCSI (Blue Coat Systems--$50.51; +1.62; optionable): Proxy appliances for web communications
http://biz.yahoo.com/p/b/bcsi.html
After Hours: $50.55
STATUS: Breakout test. Nice pullback the last week as BCSI tests and fills a gap higher last week. This is the second test of the 10 day EMA (48.75) since jumping off the 50 day EMA (43.37) as part of its continued run higher up that support level. Bigger picture, BCSI is moving in a 20 month cup with handle, and the jump higher in October was the breakout move. That gives BCSI plenty more upside, and this stock can run like the wind when it gets moving. Looks as if it is ready to do just that.
Volume: 287.45K Avg Volume: 381.737K
BUY POINT: $50.75 Volume=400K Target=$58.35 Stop=$48.55
POSITION: IYU DN - Apr. $50c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/bcsi.html

Play Date: 11/10/2005
PSUN (Pacific Sunwear--$27.63; +0.54; optionable): Apparel stores
http://biz.yahoo.com/p/p/psun.html
After Hours: $27.15
STATUS: Double bottom w/handle. PSUN gapped higher to start November, breaking out from an 8 month base. Positive 9 to 7 accumulation shows net buyers in this stock, one of the strongest in the sector. After the gap higher it has come back to test the move, tapping the 10 day EMA (26.54) on the low and rebounding to post a nice gain. Needs some more volume but looks ready to continue its strong run to a new all-time high.
Volume: 1.361M Avg Volume: 1.787M
BUY POINT: $28.11 Volume=2.7M Target=$32.55 Stop=$26.39
POSITION: PVQ CE - Mar. $25c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/psun.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.

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