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Begin part 3 of 3

THE PLAYS

Good movers: AMX; BBBB; CRM; ESRX; MRVL

Thursday night play results:
AMHC: Moving higher still but no volume Friday. Still looks solid & ready to run.
BRLI: Moving higher as well, but also no volume. Sweet pattern ready to move
FTO: Nice flat lateral move on low volume again.
OIS: Strong volume again but could go nowhere with the move Friday.

New Plays:

Upside:

Play Date: 12/10/2005
CMVT (Comverse Technology--$27.86; +0.11; optionable): Telecom processing systems
http://biz.yahoo.com/p/c/cmvt.html
STATUS: Breakout test. Strong gap higher Wednesday as CMVT made the breakout from a 12 week reverse head and shoulders base. Solid 4 to 2 accumulation in the base (4 up price weeks on rising volume to 2 down price weeks on rising volume) shows net buying that caused the demand to give rise to the breakout. It may come back to test a bit more, but with the market setting up for the next move CMVT will likely move with it given its strength. Nice move to a 4.5 year high, following that strong money flow higher.
Volume: 1.355M Avg Volume: 1.802M
BUY POINT: $28.22 Volume=2.3M Target=$33.45 Stop=$27.05
POSITION: CQV DE - Apr. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/cmvt.html

Play Date: 12/10/2005
IMGC (Intermagnetics General--$33.71; +0.28; optionable): Industrial equipment
http://biz.yahoo.com/p/i/imgc.html
STATUS: Breakout test. A top rated stock in fundamentals and technical pattern, IMGC is testing the November breakout from a 17 week double bottom base. It surged to 35 on the breakout run and has tested the past two weeks, fading to the 18 day EMA (33.42) on much lower, below average volume. It held there last week, showing a doji on the candlestick chart Friday. Money flow is strong and running higher, complementing the strong 5 to 2 accumulation. Ready to move in as this market leader continues higher on a shot of above average volume.
Volume: 137.856K Avg Volume: 184.872K
BUY POINT: $34.11 Volume=277K Target=$39.95 Stop=$33.31
POSITION: IMG DH - Apr. $35c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/imgc.html

Play Date: 12/10/2005
NUAN (Nuance Communications--$6.77; -0.12; optionable): Application software
http://biz.yahoo.com/p/n/nuan.html
After Hours: $6.66
STATUS: Breakout test. Another market leading stock in fundamentals and technical position. NUAN broke out from a 3 month ascending flat base that is part of a much larger 21 month cup with handle (the recent flat base acted as the handle). Strong volume as it broke higher in November. Tested the 10 December 2005 (now at 6.45) early last week, then gapped higher once more Wednesday on huge trade. Very strong action as the breakout move continued last week. Strong money flow is leading the way higher and relative strength broke out on the move. Very strong move on a strong earnings result, and this test is s great place to pick it off.
Volume: 2.128M Avg Volume: 1.029M
BUY POINT: $6.91 Volume=1.5M Target=$8.31 Stop=$6.43
POSITION: SSQ DA - Apr. $5c (72 delta) &/or Stock
http://www.investmenthouse.com/ci/nuan.html

Play Date: 12/10/2005
TALX (Talx Corp.--$42.58; +0.63; optionable): Automated employment/income verification, tax management services, etc. Splits 3:2 on 1-18-06
http://biz.yahoo.com/p/t/talx.html
STATUS: Test 50 day EMA. TALX is coming off a 50 day EMA test (39.69), waiting to get some volume this week as the market rebounds. TALX did a fair job of bouncing last week when the market struggles, and that indicates TALX will be ready to really move when it gets some real buying. A strong market leader in fundamentals and technical position, bouncing off the 50 day and the August high that marked the top of its base. Ready to move in this week.
Volume: 154.373K Avg Volume: 247.177K
BUY POINT: $42.72 Volume=285K Target=$50.95 Stop=$41.65
POSITION: TUB CH - Mar. $40c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/talx.html

New Buy Point on a Current Position:

Play Date: 12/10/2005
MSCC (Microsemi--$28.51; +0.38; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mscc.html
STATUS: Breakout test. MSCC is making its second test of the 10 day EMA (28.02) after its mid-November breakout from a nicely formed 11 week base. Strong breakout from this market leader, and this breakout test on low volume is setting up the next move higher. Excellent money flow and a relative strength breakout are just more indicia of the stock's leadership qualities. With the semiconductors ready to lead again, MSCC is well-positioned to continue the move, and this early test is a great entry point when it starts back up.
Volume: 476.273K Avg Volume: 835.291K
BUY POINT: $29.05 Volume=900K Target=$33.95 Stop=$27.68
POSITION: QMS CF - Mar. $30c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/mscc.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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