us stock market, stock split

Begin part 3 of 3

THE PLAYS

Good movers: BLKB; GS; LRCX; MINI; NUAN; WFR

Tuesday night play results:
IWM: Still moving higher on volume.
GS: Excellent surge higher.
KMP: Looks ready to slide lower
WFR: Excellent break higher on strong volume. Nice.

New Plays:

Upside:

Play Date: 02/15/2006
ECOL (American Ecology--$18.03; +0.1; no options): Waste management services for radioactive, hazardous, industrial waste
http://biz.yahoo.com/p/e/ecol.html
STATUS: Double bottom w/handle. ECOL is setting up for a move to a 15 year high, forming the handle to a 4.5 month base. Positive accumulation complements money flow moving higher ahead of the price as ECOL slides laterally below 18 and above the rising 10 day EMA (17.01). The 10 day is squeezing it from below. Volume has rallied the past week, and with the tight, narrow range that indicates pressure building for the breakout. Getting ready for a strong move.
Volume: 241.085K Avg Volume: 126.652K
BUY POINT: $18.31 Volume=240K Target=$17.65 Stop=$17.37
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ecol.html

Play Date: 02/15/2006
INFA (Informatica--$14.15; +0.15; optionable): Data warehousing, migration, etc. software
http://biz.yahoo.com/p/i/infa.html
After Hours: $14.11
STATUS: Test breakout. INFA broke out from a 16 week flat base in early January, moving higher on some explosive volume. It then drifted higher up the 18 day EMA (14.13) until the last week of January when it exploded higher on earnings news. That was the final hurrah in the original breakout move, and it spent the past three weeks testing back, filling the small gap up on the big January jump higher. After that fill it gapped higher Wednesday on rising but still below average volume. Super money flow leading higher and a relative strength breakout on the January move. Looking for some more volume from this top-rated stock. Looks super.
Volume: 1.087M Avg Volume: 1.691M
BUY POINT: $14.65 Volume=2M Target=$17.65 Stop=$13.88
POSITION: UYF FV - June $12.50c (72 delta) &/or Stock
http://www.investmenthouse.com/cd/infa.html

Play Date: 02/15/2006
KOMG (Komag--$46.76; -0.53; optionable): Data storage devices
http://biz.yahoo.com/p/k/komg.html
STATUS: Flying plateau. KOMG broke out from a 19 week cup with handle base in early January and rallied nicely up to 50 on the breakout move. It peaked out and started to take a breather, using the market weakness and selling to consolidate its gain. It has not given up any of its gain, instead moving laterally over the 10 and 18 day EMA (46.60, 45.74) in a nice flat range and on low volume. That shows no selling. Volume started to kick up Tuesday, and we are looking for KOMG to make the move soon. Top rated in fundamental growth and technical pattern.
Volume: 765.545K Avg Volume: 1.272M
BUY POINT: $48.12 Volume=1.5M Target=$57.75 Stop=$45.48
POSITION: QKX FJ - June $50c (48 delta) &/or Stock
http://www.investmenthouse.com/cd/komg.html

New buy point on a current play:

Play Date: 02/15/2006
TKC (Turkcell--$17.51; +0.03; optionable): Mobile communications in Turkey
http://biz.yahoo.com/p/t/tkc.html
STATUS: Flying plateau. TKC broke out from a 17 week ascending base in late January, and then in the subsequent market weakness it has moved laterally the past three weeks, refusing to give up any gains. That action (holding the 10 and 18 day EMA at 17.24 and 17.02, respectively) and the low, low below average volume shows no selling in this strong stock. Wednesday TKC surged higher on rising but still below average volume, hitting 18.29 on the high but then giving it back. Strong, and looking for volume as it continues higher out of this pattern.
Volume: 285K Avg Volume: 423.106K
BUY POINT: $17.82 Volume=635K Target=$21.38 Stop=$16.89
POSITION: TKC GW - July $17.50c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/tkc.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.

Need some replacements for the portfolio for AAPL, BR, RTSX. Send in your ideas for leaders that you want to see in the portfolio.

AAPL, CELG, BR, COH, NVDA, PSYS, RTSX, STN, UNH

AAPL: Volume has jumped back up the past two sessions as AAPL has come off some support at 65. Getting near the 50 day EMA (71.24) where it will find its first test in the rebound.

CELG: Low volume and a very tight, narrow range the past two weeks, holding the 18 day EMA. The split comes on 2-27; need to see a break higher pretty quick to give us the pre-split run.

COH: Tapping the 50 day EMA on the low again and rebounding on solid volume. Still like the pattern.

NVDA: Volume was back above average Wednesday as NVDA started off the 18 day EMA. Getting ready; see 2-14 report for the play information.

SUBSCRIBER WATCHLIST:

Ideas for plays suggested by readers. Some are on our watchlist, some are not. We put them on and let you see what else may strike your fancy. Some of these do indeed turn into plays for us.

TASR: A surging but volatile stock in 2004, TASR hit harder times in 2005 after 3 quick split the prior year. It is currently in a long base that started as it peaked in early 2005, and now coming off the bottom. It built its first base within the overall decline from November to early January and made the breakout. It has made two tests of that move, coming back to the 18 day EMA each time. It surged again last week on volume and continued that surge this week. Looks as if it is ready to make another test of the break higher. Not bad action as it recovers from the lows in the long decline.

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.

us stock market
stock split