stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: AMT; AQNT; BBBB; CAM; COHU; CRM; HYSL; LCAV; PSSI

Tuesday night play results:
FORM: Moved toward the breakout but volume fell off, back to below average.
PSUN: Holding at the 18 day EMA as it continues to work in the handle
WIRE: Still testing, holding near the 10 day EMA as it sets up for the continued break higher.
COHU: Nice volume as COHU moves off the 10 day EMA.
VSAT: Nice volume as VSAT comes off the 10 day EMA.

New Plays:

Upside:

Play Date: 11/30/2005
SOX (Philly Semiconductor Index--$481.64; +5.86; optionable)
STATUS: Reverse head and shoulders. After testing the 10 day EMA (475.80) Tuesday and looking as if it wanted to fill the gap higher from two weeks back, SOX reversed course and posted a 1.2% gain. It is setting up to make the breakout from a 12 week base, a move that will take it to a new 2005 high (486.34 is the August high). Semiconductors are vastly improved, ready to lead the market higher. Looking to take an aggressive position on a solid market move and then on a move over that August high.
BUY POINT: $484.75 on a good market move; then 486.55. Target=$504.75 Stop=$482.55
POSITION: SXX AQ - Jan. $485c (51 delta)
http://www.investmenthouse.com/ci/^sox.html

Play Date: 11/30/2005
BOOM (Dynamic Materials--$24.32; +1.20; no options): Industrial metal cladding
http://biz.yahoo.com/p/b/boom.html
After Hours: $24.49
STATUS: Test 50 day EMA. BOOM broke out in early November, moving higher on strong volume out of a 12 week cup base. It surged to near 28 and then dove sharply lower on earnings that apparently were not strong enough. The stock held the 50 day EMA (22.02), however, moving laterally for two weeks. Wednesday it jumped off the consolidation on strong, above average volume. Accumulation during the base formation is a strong 4 to 1 (4 up price weeks on rising volume to 1 down price weeks on rising volume). Looking for continued strong volume as the move progresses.
Volume: 1.75M Avg Volume: 1.386M
BUY POINT: $24.75 Volume=2.1M Target=$29.75 Stop=$23.05
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/boom.html

Play Date: 11/30/2005
FSL (Freescale Semiconductor--$25.75; +0.39; optionable): Semiconductors
http://biz.yahoo.com/p/f/fsl.html
STATUS: Breakout test. FSL is testing the breakout from a nice 12 week base to start November, rallying to 28 on the breakout move. It has spent the past two weeks easing back, testing the move and holding near the 18 day EMA (25.48). Volume surged Wednesday as FSL moved off the 18 day, looking very much as if it wants to resume the breakout move. Looking to move in as it does. A new issue in July 2004, FSL is strong and we like moving in when there is no overhead supply to push it back down.
Volume: 2.831M Avg Volume: 1.648M
BUY POINT: $26.22 Volume=2M Target=$30.97 Stop=$25.38
POSITION: FSL CE - Mar. $25c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/fsl.html

New buy point on a current position:

Play Date: 11/30/2005
IDXX (Idexx Labs--$71.55; -0.2; optionable): Diagnostic substances
http://biz.yahoo.com/p/i/idxx.html
STATUS: Test 18 day EMA. IDXX made the breakout from a big 17 month base in late October, surging higher on strong volume. It rallied to 74 on the initial run, and has spent the past week easing back toward the 18 day EMA (71.08) on low, below average volume. Nice breakout to a new all-time high and now a solid test. Looking for volume to return as it continues higher off the 18 day EMA. Strong money flow is now leading the way and IDXX is just about ready to start following it higher once more.
Volume: 78.041K Avg Volume: 147.238K
BUY POINT: $72.05 Volume=221K Target=$81.95 Stop=$77.95
POSITION: UID DN - Apr. $70c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/idxx.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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