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Begin part 3 of 3

THE PLAYS

Good movers: BABY; ALNY

Monday night play results:
ALNY: Solid volume continues as ALNY gapped higher.
ARTC: Slipped below the 18 day EMA on continued below average volume.
TECH: Reached down to the 18 day EMA and rebounded on low trade.
TRAD: Gapped higher then reversed. Don't like those reversals following a strong move.

New Plays:

Upside:

Play Date: 02/28/2006
ATHR (Atheros Communications--$20.58; +0.07; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/athr.html
After Hours: $20.54
STATUS: Flying plateau. This is the leading sub-sector in semiconductors, and ATHR is a market leader. It broke out from a 10 month base in December and has rallied well. It surged on strong earnings to end January and into February, and has spent the past two weeks working laterally above the 10 day EMA (20.06) on mostly lower, below average volume. The range has tightened up the past week as ATHR holds its gains in the market selling. Money flow is rallying higher ahead of price and we are looking for volume to break back above average as ATHR breaks higher out of this range. Strong fundamentals.
Volume: 748.858K Avg Volume: 1.046M
BUY POINT: $21.45 Volume=1.4M Target=$25.95 Stop=$19.95
POSITION: QRA FD - June $20c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/athr.html

Play Date: 02/28/2006
RNVS (Renvois--$21.66; -0.98; optionable): Biotechnology
http://biz.yahoo.com/p/r/rnvs.html
STATUS: Breakout test. A new issue in early 2004, RNVS just went through its second base, a 9 month cup with handle, breaking out in January. It ran to 21, worked laterally, then surged again to end last week. It is testing the that surge now, coming back to the 10 day EMA (21) in the Tuesday selling, fading on low volume. Looking for it to snug up at the 10 day EMA and then rebound to continue the breakout move, giving us our entry. Solid earnings and sales growth and strong accumulation.
Volume: 320.906K Avg Volume: 307.641K
BUY POINT: $22.12 Volume=461K Target=$26.85 Stop=$20.78
POSITION: JHU GX - July $22.50c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/rnvs.html

Play Date: 02/28/2006
WITS (Witness Systems--$23.43; -0.48; optionable): Contact center worldwide
http://biz.yahoo.com/p/w/wits.html
STATUS: Breakout test. WITS blasted out of a 16 week flat base to start February, rallying to 24.59 on the high. It peaked out last week and started to faded back this week, heading toward the 18 day EMA (23.24) Tuesday. It is likely to hit that level and then make its next bounce higher. Excellent 7 to 2 accumulation in the base (7 up price weeks on rising volume to 2 down price weeks on rising volume) shows a lot of buying. Nice breakout to a new 6 year high and this test is re-setting the breakout move for the next leg.
Volume: 292.145K Avg Volume: 416.835K
BUY POINT: $23.94 Volume=550K Target=$27.74 Stop=$23.02
POSITION: UPJ FX - June $22.50c (64 delta) &/or Stock
http://www.investmenthouse.com/ci/wits.html

Downside:

Play Date: 02/28/2006
XXIA (Ixia--$12.06; -0.56; optionable): Chip equipment
http://biz.yahoo.com/p/x/xxia.html
STATUS: Put. This is one of the chip sector sub-sectors that is not performing well. We played XXIA in 2005 on the upside and had good success. It peaked out midyear and has trended lower since. It just came up to test the 50 day EMA (12.97) and failed. Tuesday it was selling on stronger, above average volume, starting its next leg lower. A move to our initial target lands us a 50%ish gain.
Volume: 1.01M Avg Volume: 775K
BUY POINT: $11.98 Volume=75K Target=$10.96 Stop=$12.28
POSITION: UJC PV - Apr. $12.50p (-65 delta)
http://www.investmenthouse.com/ci/xxia.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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