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Begin part 3 of 3

THE PLAYS

Good movers: SOX; AKAM; AMX; CAM; DNA; ESRX; FSL; GILD; IIJI; LCAV; MRVL; WFR; WIRE

Wednesday night play results:
SOX: Great surge.
BOOM: Gapped higher but no volume and foundered.
FSL: Blasted off on strong volume.
IDXX: Started higher but lacked the volume to hold the move.

New Plays:

Upside:

Play Date: 12/01/2005
ITRI (Itron--$47.99; +1.24; optionable): Scientific and technical instruments
http://biz.yahoo.com/p/i/itri.html
STATUS: Cup. ITRI is working on a 17 week base, forming up nicely the past three weeks, setting up an ascending triangle. Stocks often form this intermediate pattern while working on a larger base, and the breaks higher can be strong. A market leader that is setting up for a break to a new all-time high. Strong money flow and volume ramping up as it heads toward the breakout from the base within a base.
Volume: 371.558K Avg Volume: 404.14K
BUY POINT: $48.55 Volume=600K Target=$57.95 Stop=$46.15
POSITION: IUP EF - May $50c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/itri.html

Play Date: 12/01/2005
LM (Legg Mason--$123.47; +0.82; optionable): Investment brokerage
http://biz.yahoo.com/p/l/lm.html
After Hours: $124.01
STATUS: Test breakout. Strong stock that rallied nicely in November and then eased back for just over a week to test the move, holding the 10 day EMA (122.01) on the closes. Positive accumulation shows net buying, setting up the continued move. Reached down to the 18 day EMA (119.50) on the Thursday low and then rebounded for a modest gain on strong volume. That likely shook out the last sellers and LM is ready to continue higher. This is a potential stock split early next year, an added bonus to a market leader.
Volume: 1.807M Avg Volume: 916.944K
BUY POINT: $124.75 Volume=1.4M Target=$134.95 Stop=$121.75
POSITION: LM BE - Febr. $125c (55 delta)
http://www.investmenthouse.com/ci/lm.html

Play Date: 12/01/2005
PLCE (Childrens Place--$51.27; +1.67; optionable): Apparel stores. Forecast to announce a split in early February.
BACKGROUND: Last announced a 2:1 split on 2/4/2000 at $48.
http://biz.yahoo.com/p/p/plce.html
STATUS: Cup w/handle. Volume surged Thursday as PLCE gapped higher, starting the breakout from its nicely formed 22 week base. Solid 6 to 4 accumulation in the pattern shows net buyers, setting up the breakout and run. Strong money flow is surging higher, and PLCE is now set up to follow it. Looking to move in on a continued move on solid trade as PLCE breaks out to a new high.
Volume: 1.194M Avg Volume: 780.837K
BUY POINT: $52.05 Volume=825K Target=$61.95 Stop=$49.88
POSITION: TUY CJ - Mar. $50c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/plce.html

Play Date: 12/01/2005
TRAD (Tradestation--$13.01; +1.10; optionable): Investment brokerage
http://biz.yahoo.com/p/t/trad.html
After Hours: $13.02
STATUS: Test breakout. TRAD made us some solid money earlier in the year, and it is set up to run again. Strong move Thursday off of the 18 day EMA (11.98) is resuming the breakout move that started in early November when TRAD broke out from a long 22 month cup with handle. We caught it on that first run and now we are looking to catch it on this move. Solid leader heading for a new all-time high.
Volume: 1.014M Avg Volume: 385.609K
BUY POINT: $13.16 Volume=550K Target=$15.85 Stop=$12.24
POSITION: ULR CV - Mar. $12.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/trad.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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