stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers: BMD; BRCM; LEH; LH; LRCX; NVDA; OVTI; TECH; WFR; WSM

Tuesday night play results:
BMD: Nice volume break higher off the 50 day EMA
ESLR: Took a day off after the strong Tuesday move.
HCR: Still testing, coming back to the 10 day EMA on lower volume.
EFD: Well, not quite ready yet, testing back to the 18 day EMA on the low and rebounding.

New Plays:

Upside:

Play Date: 01/11/2006
BJS (BJ Services--$39.62; +0.14; optionable): Oil and gas service company
http://biz.yahoo.com/p/b/bjs.html
STATUS: Breakout test. Volume has surged on the up sessions the past week, and it was up sharply Wednesday as BJS tested support at 38 on the low and rebounded for a modest gain. It has made three such moves the past week, and those work to shake out the sellers and set up the continued move higher. BJS broke out from an 8 week double bottom with handle base in early December, came back to test the 50 day EMA (36.95), holding the breakout, and then jumping higher to start the year. It has moved laterally since, holding its ground and waiting for the money to rotate back into energy. Excellent action from a top rated stock sporting 3 to 1 accumulation in the current short base (3 up price weeks on rising volume to 1 down price weeks on rising volume). Waiting for it to vault through the buy point on more of this strong trade.
Volume: 6.093M Avg Volume: 3.84M
BUY POINT: $40.15 Volume=5.8M Target=$47.95 Stop=$38.27
POSITION: BJS DH - Apr. $40c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/bjs.html

Play Date: 01/11/2006
IVAC (Intevac--$14.73; +1.12; no options): Thin-film equipment for disk drives and optical components for low light conditions
http://biz.yahoo.com/p/i/ivac.html
After Hours: $14.69
STATUS: Cup w/handle. Strong volume as IVAC makes the breakout move from its 21 week base that formed using the 200 day SMA (11.46) as support. The base follows a strong run from July 2004 to August 2005; it needed a breather, and this consolidation has set up the next move. Positive 5 to 3 accumulation (5 up price weeks on rising volume to 3 down price weeks on rising volume) shows the buying needed to carry it higher. Excellent start to the move and ready to enter as it continues higher.
Volume: 630.182K Avg Volume: 236.489K
BUY POINT: $15.11 Volume=350K Target=$18.21 Stop=$14.27
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ivac.html

Play Date: 01/11/2006
PRFT (Perficient--$9.59; -0.16; no options): Business integration software
http://biz.yahoo.com/p/p/prft.html
STATUS: Breakout test. PRFT is easing back to the 10 day EMA (9.43) as it tests the early December break from a long 9 month base. After the move PRFT came back to the 50 day EMA (8.83) as did many stocks, holding that level and then starting higher to being the new year. Strong volume Monday but then faded Tuesday and Wednesday as the volume did the same. Holding above the December high, a good place to resume the breakout move. Excellent 14 to 5 accumulation in the big base shows plenty of buying. Very strong money flow as well, and it is leading PRFT higher.
Volume: 173.475K Avg Volume: 167.434K
BUY POINT: $9.98 Volume=251K Target=$11.98 Stop=$9.38
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/prft.html

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: Up again, but it was a gap higher to a doji, and AAPL could not carry the move any further. Strong race higher and if it cannot further the move Thursday we will look to take some of the option gain off the table but let the rest of the position run.

NVDA: No pullback and indeed the move strengthened as NVDA rallied on the strongest volume in the move.

STN: Volume hit the highest in two weeks as STN cleared the top of the range of the last two weeks.

UNH: Working laterally along the 50 day EMA, trying to set up for another move. So far in decent shape.

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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